Mortgage Pre-approval

Before you start the house-hunting process, there’s an important step you can take to save you time and make the process smoother: getting pre-approved for a mortgage. A pre-approval determines the home price you can afford. This allows you to budget for your home purchase and streamline your home search. An added benefit  of a pre-approval is that you’ll be able to lock in a mortgage rate in case rates increase during your home search.

What is a Mortgage Pre-approval?

A mortgage pre-approval is a process that provides you with important information to help you with your home search. When you get pre-approved for a mortgage, you’ll find out:

•    The maximum amount you can afford to spend on a home
•    The monthly mortgage payment associated with your maximum purchase price
•    What your mortgage rate will be for your first mortgage term

Applying for a mortgage pre-approval at RCU is free. Getting pre-approved does guarantee that the mortgage rate you are offered will not change for 60 days. By “locking in” your rate, you’re protected if interest rates rise while you’re shopping for a home. If interest rates go down during this time, we will honour the lower rate.

Why Get Pre-approved for a Mortgage?

Getting pre-approved for a mortgage helps you in several ways:

It saves time in your home search because you’ll only look at homes in your price range. Getting pre-approved is also a signal to your real estate agent that you’re serious about buying, and you’ll receive faster more targeted service. Finally, when it comes time to make an offer on a home, the fact that you are pre-approved signals to the seller that you should have no problem financing the purchase, which will improve your chances in a competitive offer situation. 

One thing to keep in mind is that getting pre-approved for a mortgage doesn’t guarantee that your final mortgage application will be approved. When you apply for a mortgage after your Offer to Purchase has been accepted, we will look at the details of the property to make sure it’s suitable. If the property doesn’t meet RCU qualification criteria, you won’t qualify for a mortgage. For example, if the home has asbestos, knob and tube wiring, is a heritage home, or it’s appraised value is below the purchase price, we may not find it suitable and could deny you a mortgage.

Getting pre-approved for a mortgage also doesn’t mean that you should buy a home at the top of your price range. Your pre-approval amount only represents how much RCU is willing to lend you, not how much you should spend. You can choose to buy a home that is priced lower than your maximum purchase price which will ensure you have enough room in your budget for saving and paying down debt.

How to Get Pre-approved for a Mortgage?

To get pre-approved, you have to make an appointment with one of our loan officers. To determine how much you can afford to borrow to purchase a home, we will ask you a series of questions and you will need to provide some supporting documentation.

Here is a list of documentation you may need to provide for your mortgage pre-approval:

•    Identification (valid)
•    Proof of income (pay stubs and letter from your employer, or a notice of assessment 3 years if you are self employed)
•    Length of time with employer
•    Proof of down payment and ability to pay closing costs (recent financial statements of bank accounts and investments)
•    Proof of any other assets like a car, cottage or boat
•    Information about other debts including:

•    Credit cards or lines of credit
•    Spousal or child support payments
•    Student loans
•    Car leases or loans
•    Personal loans


Find Branch/ATM

Enter address, postal code or branch name
Fixed Rate Mortgages Rates
1 year 3.20%
2 years 3.30%
3 years 3.40%
4 years 3.50%
5 years 3.60%
Variable Rate Mortgages Rates
Open (1, 2, 3 years) 3.20%
Closed 2.70%
Home Equity Line of Credit Rates
Home Equity Line of Credit 3.60%