Getting a mortgage pre-approval
One of the first things you should do when you decide to buy a home — even before you start your search — is to get pre-approved for your mortgage. Here’s why:
- By getting pre-approved for a mortgage, you’ll have a better idea how much you can borrow, how much home you can afford and what your monthly mortgage payments will be.
- If you choose a fixed interest rate mortgage, you are guaranteed that rate during the 90-day pre-approval period, so you are protected if interest rates should rise.
- When it comes time to make an offer, because you know you’ve been pre-approved for a mortgage, you’ll be able to act more quickly.
How mortgage pre-approval works
Your BMO Mortgage Representative or Mortgage Specialist will meet with you to complete a mortgage application and ask you for your consent to do a credit check. You’ll also be asked to provide the following:
- Name of your employer, length of employment, and current salary
- Annual salary or wages for the household
- If you are self-employed, earnings for the past two years
- Annual earnings from commissions, bonuses or tips
- Annual interest and investment income
- Child support or alimony received this year and last
- List of assets (bank accounts, RRSPs and other investments; major personal assets, such as jewellery, car, collections)
- Details of liabilities (amounts owing on credit card balances, student loans, car loans, personal lines of credit, other debts, or monthly payment obligations)
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