What is the Difference Between Prequalified and Preapproved Mortgages in Canada?
The public, and even many REALTORS® view preapproved and prequalified as being the same thing, but they’re not.
Prequalification is based on general information that has been given to a mortgage broker or to your bank (whichever one you’re going to use). This is the first step in buying a home so that you know how much you can afford.
With a pre-qualification, the mortgage broker or bank looks at your total income and your debt and gives you a rough idea on how much you can borrow. In other words, they tell you the amount of money that you could qualify for from a lender.
The broker or the bank will calculate your affordability by doing a…