Thinking about buying your first home in Edmonton or nearby communities like St. Albert, Sherwood Park, Spruce Grove, or Leduc?
Before you fall in love with a house, there’s one crucial step you should take: mortgage pre-approval.
In this guide, you’ll learn:
Why mortgage pre-approval is important
What the process looks like in Alberta
What documents you’ll need
What lenders consider
Tips for a smooth pre-approval process
A mortgage pre-approval is a written statement from a lender estimating how much you can borrow to purchase a home. It’s based on your financial situation and credit history.
Unlike a pre-qualification (which is more of a rough estimate), a pre-approval is more detailed and shows sellers and real estate agents you’re serious and ready to buy.
It helps you understand what homes you can afford so you’re not wasting time looking above your price range.
Some lenders in Edmonton allow you to lock in a mortgage rate for up to 120 days while you shop for a home.
In a competitive market, sellers are more likely to accept offers from pre-approved buyers because it shows you’re financially ready.
You’ll discover any credit or income issues before house-hunting, so you can resolve them early.
Here’s a simple step-by-step breakdown of how the process works in Edmonton and area:
You can work directly with a bank, credit union, or a licensed Edmonton mortgage broker who can compare rates from multiple lenders on your behalf.
You’ll need:
Government-issued ID
Proof of income (pay stubs or employment letter)
Notice of Assessment from CRA (past 2 years if self-employed)
Credit report (your lender will request this)
List of debts and monthly expenses
Proof of down payment and where the funds are coming from
The lender will assess your:
Income and employment stability
Credit score (usually 600+ for most lenders)
Debt-to-income ratio
Down payment (minimum is 5% for homes under $500,000 in Canada)
Once approved, you’ll receive a pre-approval letter outlining:
The amount you’re approved for
The mortgage interest rate
The type of mortgage and term
Conditions you must meet before full approval
Most pre-approvals are valid for 90–120 days.
As of May 2025, the average home price in Edmonton is approximately $470,000, but this varies by neighbourhood and property type. A pre-approval helps you narrow your search to the areas that fit your budget, like:
Affordable family homes in The Orchards or Chappelle
First-time condos in Oliver or Downtown Edmonton
Duplexes in Secord or Laurel
Townhomes in St. Albert, Spruce Grove or Beaumont
Making big purchases before approval closes (like a car or furniture)
Changing jobs during the process
Applying for other credit (e.g., credit cards or loans)
Not budgeting for closing costs (usually 1.5–4% of purchase price)
Mortgage pre-approval is not a guarantee of final approval. Once you make an offer on a home, the lender will:
Re-check your finances
Review the property’s appraisal
Confirm employment and documentation
So it’s important to keep your finances stable from pre-approval to possession day.
If you’re starting your home buying journey in Edmonton or the surrounding areas, I’d be happy to connect you with trusted local mortgage specialists and walk you through the next steps.
Book a free consultation today to get expert guidance from start to finish.
Dwayne J. Horvath
RE/MAX Excellence
780-445-8575
info@SellWell.ca