A pre-approval holds a rate. It does not hold an approval. Those are two different promises, and the gap between them is where most unpleasant surprises live. This branch sets out exactly what is locked, for how long, and what changes when the real commitment arrives.
Pekoe Mortgages is licensed in Ontario (FSRA #13321) and Alberta (RECA). This branch page routes you to the answer. It does not replace it.
What you can rely on, and for how long. A standard rate hold usually runs 180 days. That protects you from rate increases for the length of the hold. It does not promise that a lender will fund your purchase, because no property has been assessed and no income has been verified yet.
Treat a pre-approval as a budget and a rate ceiling. Treat the commitment, which arrives in stage 4, as the actual decision.
Everything below exists because people make firm offers on the strength of a pre-approval. A pre-approval is not a financing condition, and the two are not interchangeable protection.
| Thing | Held at pre-approval | Settled at commitment |
|---|---|---|
| The interest rate | Yes, usually for 180 days | Confirmed, or repriced if the hold has expired |
| The amount you qualify for | Estimated from what you stated | Confirmed against verified income and debts |
| Your income | Stated, not proved | Proved with documents |
| The property | Not assessed, because there is none | Appraised, and reviewed against lender policy |
| The down payment | Declared | Traced to source |
| Whether the deal funds | No | Yes, subject to the conditions listed on the commitment |
The citable fact: a mortgage pre-approval holds a rate, commonly for 180 days, but it does not commit a lender to fund any particular purchase.
Giving accurate numbers. A pre-approval built on optimistic income is a pre-approval that fails at stage 4.
Choosing which lender holds the rate, tracking the expiry date, and telling you what the hold does not cover.
Holding the rate, and reserving every real decision until it has documents and a property.
Neither of them can tell you what your pre-approval covers, though both may ask to see it.
| What changes | Effect on the hold | What to do |
|---|---|---|
| The hold simply expires | Gone. You are repriced at whatever is available then | Diarise the expiry date the day you get the pre-approval |
| Your income or employment changes | The file is reassessed and the hold may not survive it | Tell your broker before you accept a new job, not after |
| You take on new debt | Qualifying amount drops, and the hold may be withdrawn | Buy the car after closing, not before |
| Your credit score falls | The rate tier can change even if the hold stands | Nothing new on credit until the deal funds |
| You switch lenders | The old hold does not travel with you | Expect a new rate at the new lender |
| The purchase is pre-construction | A standard hold cannot span a multi-year build | Expect to qualify again near final closing |
Some lenders offer longer holds through builder mortgage programmes, decided case by case rather than offered as a standard product. Do not assume one is available to you.
How long it lasts. How long a pre-approval lasts, and how a rate hold works at renewal, which is a different mechanism from a purchase hold.
What it does to your credit. Whether a pre-approval affects your score and what score lenders want.
When it does not hold. Declined after a pre-approval and declined by a lender.
The dangerous confusion. A pre-approval is not a financing condition, which is one of the most expensive misunderstandings at this stage.
What the commitment involves. Whether a commitment fee is refundable, the document set, and how long the whole thing takes.
If your work situation is unusual. A new job or probation, first year self-employed, and changing jobs before closing.
If you are buying pre-construction. Financing a pre-construction condo, where no standard hold spans the build.
The qualifying rule behind the number. The mortgage stress test.
A standard hold usually runs 180 days. Some lenders go longer through builder mortgage programmes, but that is decided case by case rather than offered as a standard product.
No. It holds a rate and gives you a working budget. The lender has not verified your income or looked at a property, so it has not agreed to fund anything yet.
You can, and it is the most expensive risk at this stage. A pre-approval is not a financing condition, and without that condition the property risk sits with you and your deposit.
You are repriced at whatever is available then, higher or lower. Diarise the expiry date on the day you receive the pre-approval rather than discovering it later.
Usually yes, lenders will honour a drop, but it is a lender policy rather than a rule. Ask your broker how your specific lender handles it before you rely on it.
No. The hold belongs to the lender that issued it. Moving to a different lender means a new rate at that lender.
Not a multi-year build. A standard hold cannot span that long, so expect to qualify again close to final closing, under whatever rules apply then.
Pekoe Mortgages is a licensed brokerage in Ontario (FSRA #13321) and Alberta (RECA). This page is general information, not financial advice, and does not create a broker and client relationship.