New To Mortgage Financing? Get Pre-Approved

Tanya Toye • April 30, 2025

If you’re thinking about buying a property, but you’re not sure where to start, you’ve come to the right place! Let’s discuss how getting pre-approved is one of the first steps in your home buying journey.


Just like you wouldn’t go into a restaurant without knowing if you have enough money to buy your meal, it’s not a good idea to be shopping for a home without an understanding of how much you can afford. You can browse MLS from your couch all you want beforehand, but when you’re ready to start looking at properties with a real estate agent, you need a pre-approval.


Now, as there may be some confusion around exactly what a pre-approval does and doesn’t do, let’s discuss it in detail. First of all, a pre-approval is not magic, and it’s not binding. A pre-approval is not a contract that will guarantee mortgage financing despite changes to your financial situation. Instead, a pre-approval is simply the first look at your overall financial health that will point you in the right direction before you’re ready to apply for a mortgage.


Said in another way, a pre-approval is a map that gives you the plan to secure an actual approval. After going through the pre-approval process, you’ll know how to qualify for a mortgage and at what amount.


When considering your mortgage application, lenders look at your income, credit history, assets vs liabilities, and the property itself. Working through a pre-approval will cover all these areas and will uncover any major obstacles that might be in your way of securing financing.


The best time to secure a pre-approval is as soon as possible; it’s never a bad idea to have a plan. Here are a few of the obstacles that a pre-approval can uncover:


  • You’ve recently changed jobs, and you’re still on probation
  • Your income relies heavily on extra shifts or commissions
  • You’re unaware of factual mistakes or collections on your credit report
  • You don’t have an established credit profile
  • You don’t have enough money saved for a downpayment
  • Additional debt is lowering the amount you qualify for
  • Really anything you don't know that you don't know


Even if you believe you have all your ducks in a row, working through the pre-approval process with an independent mortgage professional will ensure you have the best chance of securing a final approval. As a point of clarity, a pre-approval is not the same as a pre-qualification. This is not typing a few things into a website, calculating some numbers, and thinking you’re all set. A pre-approval includes providing your financial information, looking at your credit report, discussing a plan for securing mortgage financing with a mortgage professional, and even submitting documents ahead of time.


Mortgage financing can be a daunting process; it doesn’t have to be. Having a plan in place and doing as much as you can beforehand is essential to ensuring a smooth home buying experience. As there is no cost for getting a mortgage pre-approval, there is absolutely no risk. Consider starting the process right now!


If you’d like to walk through your financial situation and get pre-approved for a mortgage, let’s talk. It would be a pleasure to work with you!


Tanya Toye

Mortgage Broker

GET STARTED

Establishing New Credit

By Tanya Toye • June 25, 2025
If you’re new to managing personal finance and you want to learn about credit, you’ve come to the right place. Establishing new credit is a bit of a catch-22. To build a credit history, you need credit. But it’s hard to get credit without having a credit history. So, where do you start? Well, the first thing you should know is that building credit takes time. It’s not something that happens overnight. If you’re looking to secure mortgage financing, you will want to have a minimum of two trade lines (credit cards, loans, or lines of credit) with a minimum limit of $2500, reporting for at least two years. If you don’t have any credit yet, the best time to get started is right now. However, that may be difficult because, as we've already identified, without a credit history, most lenders won’t feel confident about taking a chance on you. What’s the solution? Consider a secured credit card. With a secured credit card, you make a deposit upfront that matches the amount you want to borrow. A reasonable amount would be $1000 deposited on a single secured credit card. You then use your secured credit card to make household purchases and regular utility payments, paying off the total balance each month. If you default on the money borrowed for whatever reason, the lender will retain the money you put up as collateral. When looking for a secured credit card, be sure to ask whether they report to the two nationwide credit bureaus, Equifax and TransUnion. If the credit card company doesn't report, the credit card account will be useless for your purposes; move on until you find a company that reports to both credit bureaus. Once your secured credit card begins reporting to the credit bureaus, you begin to have a credit score; usually, this takes about three months. Now you can start to seek out a second trade line in the form of an unsecured credit card. Don’t forget to ensure that this card reports to both of the credit reporting agencies. Another option at this point could be a car loan. From here, you simply want to make all your payments on time! But what happens if you’re looking to secure mortgage financing before you have a fully established credit report? Well, if you have someone who would consider co-signing, you can certainly go that route. The mortgage application will depend on their income and credit report, but your name will be on the mortgage. Hopefully, when the mortgage is up for renewal, you’ll have the established credit required to remove them from the mortgage and qualify on your own. Although establishing credit takes a minimum of two years, it really begins with putting together a plan. If you’d like to discuss anything credit or mortgage-related, please get in touch!

Proposed GST Rebate Could Save First-Time Homebuyers Thousands

By Tanya Toye • June 20, 2025
There’s promising news out of Ottawa for first-time homebuyers that could significantly reduce the cost of getting into the housing market when purchasing a newly built or substantially renovated home. On May 27 th , the federal government proposed legislation to provide GST relief on new home purchases for first time buyers: A full rebate on purchases of up to $1 million and a partial rebate on homes between $1Million and $1.5Million. The proposal still needs to be passed by parliament, but this change could translate into savings of up to $50,000, making a big difference in both the short- and long-term homeownership affordability. In today’s high-price environment, first-time buyers often struggle to save the required down payment while also qualifying for a large enough mortgage. By removing or reducing the 5% GST on qualifying new builds and substantially renovated properties, this policy eases some of that financial burden. A recent report from Desjardins Economics shows these savings are more than just hypothetical. A first-time buyer purchasing a new home at the $1 million mark (inclusive of tax) could see a reduction of around $240 on their monthly mortgage payments. This money could then be redirected toward savings, home improvements or simply making life more manageable. Plus, with the tax removed, the required down payment is also slightly lower, which helps ease upfront costs. Maximizing support for first-time homebuyers For parents helping children buy their first home – whether through gifting the down payment or co-signing a mortgage – this change presents an opportunity to maximize that support. A lower purchase price and more affordable carrying costs make it easier for younger buyers toqualify for financing and remain financially stable after closing day. If you’re considering buying a newly built or substantially renovated home, now is a great time to talk to your mortgage broker about how this GST rebate could impact your mortgage strategy – and your bottom line. Have questions about your first-time homebuyer mortgage options or wish to book a free review to see if your mortgage is still right for you?  I’m here to help: 604-788-8693 | tanya@tanyatoye.ca