Definitions
Pre-approval vs pre-qualification — in plain English.
Half of Canadians walking into a bidding war hold a pre-qualification and think it's a pre-approval. It isn't, and the difference can cost the offer.
The difference at a glance
| Dimension | Pre-qualification | Pre-approval |
|---|---|---|
| Credit pull | No | Yes — hard inquiry |
| Income verified | Self-reported | Documents reviewed |
| Underwriter assigned | No | Yes |
| Rate hold | Sometimes | Yes — 90–120 days |
| Lender commitment | None | Conditional commitment |
| Useful in bidding war | Marginal | Strong |
Why it matters in an offer
A real pre-approval is a written conditional commitment from a named lender. A pre-qualification is a calculator estimate. In a multiple-offer situation, the listing agent reads both — and the conditional commitment wins.
Written and reviewed by the Canadian Mortgage Compass Editorial Desk. This page is general information for Canadian readers and is not mortgage, legal, tax, or financial advice, and not an offer of credit. Rules, rates, and lender policies change; confirm your own situation with a licensed mortgage professional in your province. Editorial policy · Corrections