Is my bank's pre-approval rate good? (Ontario)

In Ontario, your bank's mortgage pre-approval rate is a rate hold, not a final deal. The lender holds a rate for a set period while you shop, and the mortgage itself is still conditional and subject to lender approval. Whether the rate is good depends on other lenders' holds for the same mortgage, how long the hold lasts, the hold's conditions, and whether the held rate drops if rates fall before you close.

What a pre-approval rate is

A pre-approval means a lender has looked at your credit and documents and told you the amount and rate it would consider. A pre-approval is not a commitment to lend. Once you have an accepted offer on a home, the lender generally reviews the property and may order an appraisal. The lender also confirms your documents are still current, and the final answer can change. Our page on pre-approval vs pre-qualification explains the difference.

The rate is the part people notice. A held rate only helps if the hold lasts long enough and the mortgage behind it fits your plans.

What to check in a pre-approval

• Hold length: rate holds are commonly 90 to 120 days. Ask whether the hold runs to your likely closing date, and what happens if it runs out first.
• Conditions: ask what still has to be confirmed, such as income documents, the down payment, the property and the appraisal.
• Whether the rate drops: if rates fall during the hold, some lenders give you their lower rate at closing; others keep the held rate. Ask which approach applies to your hold.
• Term and type: a hold only helps if it matches the term (the length of the contract) and the rate type, fixed or variable, that you intend to take.
• Amortization: first-time buyers and buyers of new builds can have a 30-year amortization on an insured mortgage. The home must be one they or a close relative will live in, and the rule applies to insurance applications from December 15, 2024 (source: Department of Finance Canada, checked October 2026). A longer amortization lowers the payment, and you pay interest for longer.
• The terms behind the rate: check the penalty method, prepayment privileges and portability, the same terms that matter in any offer.

Compare on terms, not just rate

Two pre-approvals are only comparable when they are for the same amount, term, rate type and amortization. A slightly smaller rate may not be the better choice if it comes with a shorter hold, a stricter penalty method or less prepayment room. Those terms matter most if you might sell or refinance before the term ends.

A pre-approval does not oblige you to take that lender's mortgage. Many buyers keep comparing during the hold, and a broker can put several lenders' terms side by side. Our pre-approval process page explains how we compare pre-approvals.

What to do next

Enter your pre-approval in the offer check to see how its terms score. Or use our call-back form, and we will compare your pre-approval with what the lenders we work with would offer, subject to lender approval.