Securing a mortgage pre‑approval is one of the most important things you can do before starting your home search in Alberta. Whether you’re a first-time home buyer or moving into your next place, pre‑approval helps you understand what you can afford and shows sellers you’re serious.
Working with a professional like Dillan Kelly, Mortgage Broker, gives you access to trusted advice, competitive rates, and a smoother experience—whether you’re buying in Calgary, Lethbridge, Coaldale, Red Deer, or Medicine Hat. Let’s walk through the five key steps to getting pre‑approved.
1. Gather Your Financial Documents
The first step toward mortgage pre‑approval is gathering the right documentation. Lenders want a full picture of your finances to determine what you’re eligible for.
You’ll need:
- Proof of income (recent pay stubs, T4s, or Notice of Assessment for the self-employed)
- Proof of employment (a job letter from your employer or recent contracts)
- Bank statements showing savings, investments, or other assets
- Info about current debts or monthly obligations
Being organized can speed up the approval process and prevent surprises later. If you’re working with a mortgage team like Dillan Kelly’s, they can walk you through exactly what’s required, step by step.
2. Check and Improve Your Credit Score
Your credit score plays a major role in determining your mortgage approval and what rate you’ll receive. Most lenders in Alberta prefer a score above 680, though alternative lending options may still be available with lower scores.
To improve your credit score before applying:
- Check for errors on your credit report and correct them
- Pay down existing credit card balances
- Make consistent, on-time payments
- Avoid applying for new credit just before mortgage approval
Your broker can help you interpret your score and identify improvements. In some cases, a few small changes could save you thousands over your mortgage term.
3. Figure Out Your Budget and Down Payment
Knowing what you can comfortably afford ensures you shop within your means—and avoid overextending yourself. A good broker will help you calculate your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios, which are used to determine affordability.
In Alberta:
- Your minimum down payment is 5% of the home’s purchase price for homes up to $500,000
- For homes over $500,000, you’ll need 5% of the first $500,000 and 10% on the amount above that
- A 20% down payment eliminates the need for mortgage default insurance
Using a mortgage calculator can help you play with different down payment and amortization scenarios. If you’re unsure where to start, Dillan Kelly’s mortgage group is always available to guide you through budgeting options.
4. Compare Rates from Multiple Lenders
One of the major advantages of working with a mortgage broker is access to multiple lenders—not just your bank. A broker can help you compare rates, terms, and flexibility across various financial institutions.
In Alberta, the lending landscape includes:
- Major banks (like RBC, TD, and Scotiabank)
- Local credit unions with unique lending programs
- Alternative and private lenders for less traditional applicants
This can be especially helpful if you’re self‑employed, recently moved to Alberta, or have a limited credit history. As part of a larger mortgage team, Dillan negotiates on your behalf to secure the best mortgage product for your needs.
5. Submit Your Application for Pre‑Approval
Once everything is in place, your broker will help you submit a complete and accurate mortgage pre‑approval application. This typically includes:
- Completing an application (either online or in-person)
- Submitting documents for verification
- Allowing the lender to pull your credit score
Within a few days, you’ll receive a pre‑approval letter stating the amount you’re approved for, your interest rate (locked in for up to 120 days), and any conditions that apply. This letter is essential when making an offer, especially in Alberta’s competitive markets.
What Happens After You’re Pre‑Approved?
With a pre‑approval in hand, you’re ready to start home shopping. Here’s what to expect next:
- Start viewing homes that match your pre‑approved price range
- Partner with a Realtor who knows your local market—whether that’s in Medicine Hat, Red Deer, or Lethbridge
- Finalize your mortgage once you’ve made an offer and it’s been accepted
- Order an appraisal, meet any outstanding lender conditions, and prepare for your closing day
Pre‑approval isn’t a final commitment, but it’s a strong indicator to sellers that you’re financially ready—giving you an edge in a hot market.
Final Thoughts
No matter where you’re buying in Alberta, taking the time to get pre‑approved will set you up for success. With the right support, it doesn’t have to be stressful. Reach out to Dillan Kelly, Mortgage Broker, for clear guidance, access to competitive rates, and the experience of a dedicated mortgage group that knows Alberta’s real estate inside and out.
Try our free mortgage calculator or connect with Dillan today to get started.