209 - 3852 Finch Ave E, Toronto, ON M1T 3T9
Brokerage #13763
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Brokerage #13763
Toronto & Ontario · 2026 · LendSimpl FSRA #13763
A pre-approval tells you how much you can borrow and locks in your interest rate before you start house hunting. It takes most people one business day to complete and is free through a mortgage broker. Here's exactly how it works — with no jargon and no marketing spin.
Get pre-approved freeHow long it takes
1–3 business days
Rate locked for
Up to 120 days
Lenders compared
50+
Cost to you
Free
Credit check
One hard pull
FSRA licence
#13763
⚠ One thing worth knowing upfront about your credit
A full pre-approval requires a hard credit check — there's no way around it. This temporarily lowers your score by about 5–10 points. In Canada, each separate lender or broker that pulls your credit counts as its own inquiry. If you apply through multiple brokers at the same time, those pulls add up. The right approach: use one broker who submits to multiple lenders on your behalf using a single credit pull — which is how lendsimpl works.
The process
Fill out a short online form
Takes about 5 minutes. You'll share basic details: your income, employment, and how much you've saved for a down payment. Nothing is submitted to a lender yet at this point.
Gather your documents
Your broker will tell you exactly what's needed for your situation — no guessing. For most employed people it's recent pay stubs, last 2 years of tax slips, a letter from your employer, and 3 months of bank statements showing your down payment.
A credit check is done — one inquiry, one time
A full pre-approval requires a hard credit check. This will cause a small, temporary dip in your score — how much varies by person and isn't something the credit bureaus publish a formula for. What we do know: in Canada, each lender that pulls your credit counts as a separate inquiry. Having multiple brokers apply on your behalf can compound that. lendsimpl does one pull and uses it to shop 50+ lenders for you.
Your application goes to the right lender
Your broker reviews your full picture and submits to the lender most likely to approve you at the best rate — not just whoever is first on a list. One application, one credit pull, multiple lenders evaluated.
You get your pre-approval letter
The letter confirms your maximum purchase price and locks in your interest rate for up to 120 days while you shop for a home. If rates go up before you close, you're protected at your locked rate. If rates drop, you can ask your lender to match the lower rate — though this depends on the lender's policy and is not automatic.
Know the difference
These two terms get mixed up constantly. In a competitive Toronto market, sellers and their agents know the difference — and it matters.
| Pre-approval | Pre-qualification | |
|---|---|---|
| Does a lender actually review your income? | Yes — documents verified | No — you self-report |
| Is your credit checked? | Yes — one hard inquiry | Soft check or none |
| Is your rate locked in? | Yes — up to 120 days | No rate lock |
| Do sellers and agents take it seriously? | Yes — carries real weight | Not really |
| How long does it take? | 1–3 business days once documents are in | Minutes online |
| Does it guarantee a mortgage? | No — conditional on the property and final review | No |
Does a pre-approval guarantee you'll get the mortgage? No. It's conditional — the lender still needs to approve the specific property you're buying and will re-verify your finances closer to closing. As long as your situation doesn't change significantly (new debt, job change, credit drop), most pre-approvals convert to full approvals without issues.
Rate protection
If rates go up
You're protected at your locked rate for up to 120 days. Even if rates rise by 1% before you close, you keep the rate from your pre-approval. This is the main reason to get pre-approved before you start shopping.
If rates go down
Most lenders allow you to request a lower rate if the market drops before you close — but this is not automatic. It depends on your lender's policy, and you or your broker needs to ask. Some lenders do it easily, others don't. Don't assume it happens on its own.
If your hold expires
If you haven't found a home within 120 days, your broker can renew the pre-approval. This requires a fresh credit check, but it's a routine process as long as your financial situation hasn't changed.
What you'll need
Your broker will give you a personalized list before you gather anything. Here's what most applicants need:
Down payment gift? If a family member is giving you some or all of your down payment, you'll need a signed gift letter confirming it's a gift — not a loan. The letter needs to include the amount, the donor's name and relationship to you, and a statement that no repayment is expected. The money should ideally be in your account 90 days before closing.
Your buying power
Your maximum mortgage is determined by two things: how much your income supports, and whether you pass the stress test. The stress test means the bank qualifies you at your rate plus 2% — so if your rate is 4.44%, they check if you can afford payments at 6.44%. This typically reduces your buying power by 18–22%.
| Your household income | Rate you pay | Rate bank tests you at | You qualify for | Without the test | Difference |
|---|---|---|---|---|---|
| $60,000 | 4.44% | 6.44% | $170K | $210K | −18% |
| $80,000 | 4.44% | 6.44% | $270K | $325K | −18% |
| $100,000 | 4.44% | 6.44% | $365K | $445K | −18% |
| $120,000 | 4.44% | 6.44% | $460K | $560K | −18% |
| $150,000 | 4.44% | 6.44% | $605K | $740K | −18% |
| $175,000 | 4.44% | 6.44% | $730K | $885K | −18% |
| $200,000 | 4.44% | 6.44% | $850K | $1.03M | −18% |
| $250,000 | 4.44% | 6.44% | $1.09M | $1.32M | −18% |
Based on a 4.44% contract rate, stress tested at 6.44%, 25-year mortgage, 20% down payment, and ~$800/month in property taxes, heating, and other debts. All income levels use the same rate — the stress test rate doesn't change based on how much you earn.
Why a broker
Your bank only shows you their rates
When you go to your bank for a pre-approval, they only check their own products. A broker submits your application to multiple lenders and finds whoever offers the best rate and terms for your situation.
One credit pull, many lenders
Going to three banks directly means three credit checks. A broker does one pull and uses it to compare dozens of lenders — protecting your credit score while giving you more options.
Faster than going to the bank yourself
Banks can often take several business days and only check their own products. Through a broker, most straightforward pre-approvals come back within 1–3 business days — but the biggest variable is how quickly you can get your documents together. The more complete your submission, the faster everything moves.
No cost to you
Mortgage brokers in Ontario are paid by the lender, not by you. The service is free for most home purchases. You get the broker's expertise and lender relationships at no extra charge.
Help if the bank says no
If a major bank declines you, a broker can help figure out what the issue was — though banks don't always give a specific reason. From there they can identify whether a credit union, alternative lender, or private lender is a better fit for your situation.
Licensed and regulated
lendsimpl is licensed by FSRA (Ontario's financial regulator) under Brokerage #13763. You can verify this at fsrao.ca. Every broker you work with also holds their own individual FSRA licence.
Free · No commitment · Licensed Ontario brokers
Know your budget before you start shopping.
FAQ
lendsimpl · FSRA Brokerage #13763 · 209-3852 Finch Ave E, Toronto, ON M1T 3T9 · hello@lendsimpl.ca · 416-299-6096. Pre-approval timelines depend on document submission speed and lender turnaround. Rate holds and rate adjustment policies vary by lender. All qualifying estimates are for general guidance only — your actual approval depends on your complete financial profile, the lender, and the property. Verify FSRA licence at fsrao.ca.