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Wondering how to get pre-approved for a mortgage in Victoria, BC, and what lenders actually look at before you start house hunting?
Short answer: getting pre-approved means organizing your finances, submitting documents to a lender or mortgage broker, and passing income, credit, and debt checks so you receive a written pre-approval letter that defines your real buying power in the Victoria market.
Quick snapshot for first-time buyers
A mortgage pre-approval is not just a formality. It sets your realistic budget, helps you move confidently when the right home comes along, and prevents disappointment later. This guide walks you through the process step by step, in plain language, with Victoria-specific context.
Step-by-step mortgage pre-approval process in Victoria
While the rules are national, how they play out matters locally. Here is how the pre-approval process typically unfolds for Victoria buyers.
1. Review your finances honestly
Before any lender looks at your application, they assess the same core areas:
Income and employment history
Credit score and payment history
Existing debts
Size and source of your down payment
Helpful steps before applying:
Pull your own credit report and review it for errors
Pay down high-interest debt if possible
Avoid applying for new credit
Small improvements here can meaningfully change your borrowing power. Preparation creates leverage.
2. Choose a lender or mortgage broker
You can apply directly with a bank or credit union, or work with a mortgage broker who shops multiple lenders on your behalf. Many buyers benefit from working with a Victoria-based mortgage broker because they understand local property taxes, typical condo strata fees, and realistic price ranges across neighbourhoods. That local context helps ensure your pre-approval reflects real conditions, not just best-case assumptions.
3. Submit a pre-approval application
You will provide personal details, employment and income information, an estimated down payment amount, and consent for a credit check. The lender applies federal mortgage rules, including debt service ratios and the mortgage stress test, to calculate your maximum mortgage amount and purchase price. This is where clarity replaces guesswork.
4. Receive and review your pre-approval letter
If approved, you receive a written pre-approval outlining your maximum mortgage amount, the interest rate (often locked for 90 to 120 days), and basic mortgage terms. This letter allows you and your Victoria realtor to focus only on homes that genuinely fit your budget. Confidence comes from knowing your numbers.
Documents you will need for a mortgage pre-approval
Most lenders across BC request similar documentation. Having these ready makes the process smoother and less stressful.
Identification
Government-issued photo ID such as a driver’s licence, passport, or BCID
Income and employment
Two recent pay stubs showing employer name and income
Letter of employment confirming your position, employment status, start date, and salary or hourly rate
T4s and or Notices of Assessment from the last one to two years
If you are self-employed or commission-based
Last two years of full tax returns (T1 Generals)
Corresponding Notices of Assessment
Business financial statements or bank records
Business licence or incorporation documents
Possible year-to-date income statements
Self-employed buyers can qualify, but documentation becomes more important.
Down payment and assets
Recent bank or investment statements
RRSP, FHSA, or other registered account balances
Proof of funds for both down payment and closing costs
If funds are gifted, lenders require a signed gift letter and proof the money has been deposited.
Debts and obligations
Credit card statements
Lines of credit
Car loans or leases
Student loans
Support or alimony payments, if applicable
Lenders use this information to calculate your debt service ratios and approved amount.
What lenders are checking behind the scenes
Even though you are buying in Victoria, lenders apply national standards with a few local considerations.
Credit review
They assess your credit score, payment history, and credit utilization. Strong credit typically results in better rates and fewer conditions.
Debt service ratios
Lenders estimate your monthly housing costs, including the mortgage payment at the stress-test rate, property taxes, heating, and condo strata fees if applicable. These costs are compared to your gross income to ensure you stay within standard limits, commonly around 39 percent GDS and 44 percent TDS.
Stress test and rate hold
You must qualify at the higher of your contract rate plus 2 percent or the federal benchmark rate. Most pre-approvals also include a rate hold for 90 to 120 days, offering protection if rates rise while you search.
How pre-approval plays out specifically in Victoria
Victoria’s market introduces a few important nuances.
Property taxes and strata fees
Municipal property taxes and condo strata fees are factored into affordability calculations. Older or higher-maintenance buildings, common in central neighbourhoods, may receive additional scrutiny later in the process.
Typical price ranges
Because many single-family homes fall into higher price brackets, pre-approval often clarifies whether you are realistically shopping for a condo, townhouse, or detached home. This clarity keeps your search focused and grounded.
Practical tips before and after you apply
Avoid taking on new debt or making large purchases before and after pre-approval
Keep employment stable, as probationary periods or job changes may tighten approvals
Budget 1.5 to 4 percent of the purchase price for closing costs in addition to your down payment
Preparation reduces friction. Stability builds confidence.
Frequently asked questions
Does a pre-approval guarantee I can buy a home?
No. A pre-approval is conditional and subject to full approval once you have an accepted offer and property details, but it remains an essential first step.
How long does a pre-approval last?
Most pre-approvals are valid for 90 to 120 days, depending on the lender.
Should I get pre-approved before working with a realtor?
Yes. Pre-approval gives structure to your search and allows your realtor to guide you strategically within your true budget.
Final thoughts
Getting pre-approved is not just paperwork. It is about understanding your financial position clearly before making one of the biggest decisions of your life. In a market like Victoria, clarity creates confidence, and confidence leads to better outcomes.
If you’re curious how this would look with your income and goals, please feel free to reach out for a calm, no-pressure conversation.
Matt Peulen
Disclaimer:
This article is provided for general information only and does not constitute legal, financial, or tax advice. Mortgage rules, lending criteria, and interest rates may change. Always consult qualified professionals regarding your specific circumstances.
