Skip to main content
• Apr. 25, 2019

Buying a home is one of the biggest purchases most Canadians will ever make.

When thinking about becoming a homeowner and entering into the mortgage process, it’s important to understand the various terms used by mortgage lenders, including two important terms: pre-qualification and pre-approval. Do you know the difference?

Many lenders will pre-qualify their customers, but that only gives you a general idea of the amount of the mortgage you could afford. When you get pre-approved, you'll get a clearer picture of the home you can afford and what you might pay each month.

All pre-approvals come with a rate guarantee – at TD, this rate is valid for 120 days – which means that your rate is protected even if rates increase while you're home hunting.

If rates do rise, TD will honour the interest rate quoted on your pre-approval. If interest rates go down during this time, you can ask to have your pre-approved interest rate adjusted to reflect the lower current rate and start your 120-day rate hold again.

Pre-approvals are free and there is no obligation to use the full pre-approved amount. If customers want to take a little longer to search for the perfect home or if the home shopping process takes longer than expected, they can easily reapply for a new 120-day pre-approval.

To learn more about mortgage pre-approvals or to do your own pre-approval online, visit TD Mortgage Pre-Approval.

Want to learn more about your money?
Five ideas for what you could do with your tax refund
Some tips on how to possibly lower your tax bill
(Almost) everything you need to know about renewing a mortgage

See you in a bit

You are now leaving our website and entering a third-party website over which we have no control.

Continue to site Return to TD Stories

Neither TD Bank US Holding Company, nor its subsidiaries or affiliates, is responsible for the content of the third-party sites hyperlinked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third party sites.

Third-party sites may have different Privacy and Security policies than TD Bank US Holding Company. You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information.