Mortgage Pre-Approval | Ted Vailas Mortgage

Complete Guide to Getting a Mortgage Pre-Approval in Winnipeg

Getting a mortgage pre-approval is one of the most crucial and strategic steps you can take in your home-buying journey. It not only provides clarity about your purchasing power but also enhances your credibility with sellers and real estate agents. With the Winnipeg real estate market seeing increased competition and evolving mortgage rules in 2025, having a pre-approval in place ensures you can act fast and make well-informed decisions. This comprehensive guide will walk you through everything you need to know about getting pre-approved for a mortgage in Winnipeg—step by step, with expert tips and helpful insights tailored for 2025.

Why Get Pre-Approved?

A mortgage pre-approval is more than just a preliminary green light from a lender—it's your financial game plan. Here's what it offers:

Budget clarity: Understand exactly how much house you can afford based on your income, debts, and expenses.
Rate lock protection: Many lenders will lock in your interest rate for up to 130 days, protecting you from rate hikes.
Buyer credibility: Sellers and agents take your offer more seriously when they know you’re financially qualified.
Identify problems early: A pre-approval helps uncover issues with your credit, income documentation, or debt ratios before you’ve fallen in love with a home.
Faster closing process: Since most of the financial review is done ahead of time, you can often close more quickly and smoothly.

Working with a mortgage broker makes this step even easier. Brokers are highly experienced at handling all the details and advocating for your best interests from the beginning.

Step 1: Understand What Lenders Look At (GDS & TDS)

In Canada, mortgage lenders assess your ability to repay a loan using two primary ratios:

GDS (Gross Debt Service Ratio):

This measures how much of your gross monthly income goes toward housing expenses.

Should be under 35% (some lenders go up to 39%)
Includes:
- Property taxes
- Heating costs
- 50% of condo maintenance fees (if applicable)
Mortgage principal and interest

TDS (Total Debt Service Ratio):

This includes all your housing costs plus other monthly debt obligations.

Should be under 42% (up to 44% with strong credit)
Includes:
- Credit card minimum payments
- Auto loans or leases
- Student loans
- Lines of credit

A skilled mortgage broker can calculate these ratios for you and offer proactive guidance on how to improve them if necessary, helping you qualify for more favorable mortgage terms.

Step 2: Check and Improve Your Credit Score

Your credit score plays a vital role in determining your eligibility and the rate you'll receive. Here's what you need to know:

Aim for a score of 680 or higher to access the best mortgage rates from major banks and credit unions.
If your score is between 600 and 679, you may still qualify but could face higher rates or need a larger down payment.
Scores below 600 generally require alternative lenders and come with higher costs and stricter terms.

Mortgage brokers work with a wide range of lenders, including those who specialize in clients with less-than-perfect credit, giving you options you might not have known existed.

Step 3: Gather Your Supporting Documents

Lenders want to see proof of your income, assets, and liabilities. Collecting these documents in advance will streamline your application.

For Employees:

Government-issued photo ID
Two recent pay stubs
Letter of employment (dated within 30 days)
T4 slips and Notice of Assessment (last 2 years)

For Self-Employed Individuals:

Two years of full personal income tax returns (T1 Generals)
Two years of CRA Notices of Assessment
Business license or articles of incorporation (if applicable)
Business financial statements or bank statements showing income flow

Step 4: Why Choose a Mortgage Broker Over a Bank?

You have two main choices when getting pre-approved: direct with a bank or through a licensed mortgage broker. While banks can only offer their in-house products, mortgage brokers work for you, not the lender.

Advantages of Working With a Mortgage Broker:

Access to a wide variety of lenders (banks, credit unions, B-lenders, private lenders)
Better rate shopping and access to exclusive broker-only deals
Objective advice tailored to your situation—not the lender’s bottom line
More flexibility for unique income types, new Canadians, or self-employed buyers
Often faster turnaround times and more responsive service

A broker acts as your personal mortgage advisor—saving you time, stress, and potentially thousands in interest.

Step 5: Submit the Pre-Approval Application

Your mortgage broker will:

Review your income, employment, credit history, and debt levels
Calculate your GDS and TDS to determine what you can qualify for
Match your profile to the best lender for your needs

Once processed, you’ll receive:

A pre-approval letter stating your maximum purchase price
A locked-in interest rate, typically valid for 60 to 130 days
A list of any conditions required for final approval (e.g., subject to appraisal, confirmation of employment)

Step 6: Understand the Limits of Pre-Approval

While a pre-approval is a powerful tool, it’s important to understand its limitations:

Not a final approval: Your mortgage is still subject to approval of the property you choose.
Conditions apply: If your income or credit changes before you buy, your pre-approval could be affected.
Pre-approvals are only valid for a short period of time based on all information gathered at the time.
Rates could drop, but your broker can often take advantage of this to ensure you still get the best deal.

Step 7: Start House Hunting with Confidence

With your pre-approval letter in hand, you’re ready to shop with confidence:

Set a realistic price range and stick to it
Partner with a Winnipeg-based real estate agent who knows the local neighborhoods
Keep your mortgage broker in the loop—they can update your file if your situation changes

Step 8: What Happens After You Make an Offer

Once your offer is accepted:

Send your signed purchase agreement to your broker
The lender may require a property appraisal to confirm value
The broker works with your legal and insurance providers to satisfy all conditions

Once approved:

You’ll receive a mortgage commitment letter
Your lawyer finalizes closing paperwork
Mortgage funds are released on possession day

Step 9: Plan for Closing Costs

Buying a home involves more than just a down payment. Be prepared for:

Land Transfer Tax (based on the purchase price)
Legal Fees & Disbursements (~$1,500)
Home Inspection & Appraisal Fees ($400–$600 and $300–$500)
Title Insurance & Insurance Setup
Moving Costs, Furnishing, and Utility Setups

Your mortgage broker can help you estimate these costs and build a solid budget.

Pro Tips for Mortgage Pre-Approval Success

Start early—even if you’re 6–12 months from buying
Don’t finance big purchases (cars, furniture) during the process
Keep your credit stable—no new cards or missed payments
Stay in touch with your broker—they’re your partner throughout this journey
Ask lots of questions. Mortgage brokers love helping clients feel empowered and informed

First-Time Buyer Incentives Available in 2025

Land Transfer Tax Rebate (Manitoba): Helps reduce your upfront costs
RRSP Home Buyers’ Plan: Withdraw up to $35,000 tax-free
GST/HST Rebate: For eligible new homes and substantial renovations

Your broker will make sure you access every program you're eligible for.

Need Personalized Support?

Mortgage brokers are licensed experts who offer free, no-obligation consultations. Whether you're ready to buy now or just exploring your options, working with a broker ensures you have someone in your corner who’s advocating for your best deal.

Don’t go it alone—connect with a local Winnipeg mortgage broker (like me) and make your home buying experience smoother, smarter, and more successful.