A mortgage pre-approval is when your lender has reviewed your basic financial information (income, credit score, current debts, etc.) and has determined the maximum amount of money they will lend to you. GET IN WRITING.


The pre-approval process consists of three quick and easy steps. Once this is done, your file will be sent for a pre-approval to the lenders that offer the best rate and product to suit your needs.

To determine how much you qualify for banks use a set of ratios that determine how much of your income will be used to pay down your current debt.

The two ratios used are Gross Debt Servicing (GDS) and Total Debt Servicing (TDS).

GDS is the percentage of your gross income that is required to cover housing costs. These costs include the following items:

  • Mortgage payment
  • Property tax payment
  • Heating expenses
  • Strata fees (if applicable)