What you need to get pre-approved for a mortgage in Alberta

A pre-approval is a lender saying “based on what you have shown us, we would lend you up to this amount at this rate for the next 90 to 120 days.” It is not a promise. It is a serious estimate, and it is the difference between shopping with a number and shopping with a hope.

Here is what you will be asked for, in the order it usually comes up.

1. Proof of income

For employees: your two most recent pay stubs and an employment letter that states your job title, whether you are permanent or on contract, your salary or hourly rate, and your start date. Add the last two years of T4s.

For self-employed, commission or contract income: the last two years of tax returns and Notices of Assessment. Lenders average the two years, and some add back expenses such as capital cost allowance. If you earn this way, read our self-employed guide first, because the route matters.

2. Proof of down payment

Ninety days of statements for every account the money is in. If part of it is a gift from family, a signed gift letter. If it is coming from outside Canada, the records of the transfer and the account it came from. Lenders are required to trace where a down payment came from; a clean paper trail avoids a delay at the worst moment.

In Alberta, as everywhere in Canada, the minimum down payment is 5% of the first $500,000 of the price and 10% of the rest, up to $1.5 million. From $1.5 million it is 20%.

3. Credit

The lender pulls your credit report with your consent. One pull through us is shared with the lenders we approach; you are not checked separately by each one. A higher score opens more lenders and better pricing. A short history, common for newcomers, is not the same as a bad one, and there are programs for it.

4. Your debts

Car loans, student loans, credit card and line-of-credit balances, child support. These reduce what you can borrow because lenders cap your total monthly obligations at about 44% of your income. Be complete; the credit report will show them anyway.

5. ID and status

Government photo ID. If you are not a citizen, your permanent resident card or work permit. Status decides which programs apply, not whether you can buy.

6. The property, once you have one

The listing, the accepted offer, the property tax estimate and, for condos, the condo documents. Until then, the pre-approval is based on a price range.

What the letter gives you

A maximum amount, a rate hold, and a document a seller’s agent takes seriously. What it does not do is guarantee the final approval: the property has to qualify too, and nothing in your finances can change between the letter and the closing. No new car loan, no job change, no large unexplained deposits.

Start before you need it

The best time to get pre-approved is a month before you start looking. It shows you your real range, and it gives us time to fix anything a lender would question. Check your buying power, then book a conversation.