Thinking about buying a home?
Before you get swept away by beautiful listings and open houses, let’s talk about a crucial first step: getting pre-approved for a mortgage. As a Realtor, I see firsthand how pre-approval can save buyers from unnecessary stress and disappointment—and help them act quickly when they find the right home.
Why Pre-Approval Is So Important
✅ You’ll Know Your True Budget
Pre-approval gives you a clear, realistic budget. No more guessing or getting attached to homes outside your range.
âś… Sellers Will Take You Seriously
In a competitive market, a pre-approval letter shows sellers you’re ready and able to buy—giving you an edge over buyers who aren’t prepared.
âś… It Speeds Up the Process
When you find the perfect home, you can move quickly and confidently without financing delays.
âś… It Reduces Stress
Knowing exactly where you stand financially takes a major layer of worry off your plate—and mine too as your Realtor!
âś… It Protects You From Market Shifts
With everything going on globally—including the recent trade wars in the US—markets and interest rates can be unpredictable.
Economic uncertainty can push rates higher, meaning a pre-approval not only locks in your rate for a period but also helps shield you from sudden financial changes that could impact what you can afford.
Understanding the Mortgage Stress Test
When you get pre-approved, there’s also another important step you’ll encounter: the Mortgage Stress Test. While I’m not a lender myself, I’ve learned a lot about how it impacts buyers.
The mortgage stress test is designed to ensure that you can afford your mortgage not just at today's rate, but if rates were to rise significantly in the future. Here’s the simplified version:
You must qualify either at the Bank of Canada’s benchmark rate (currently around 5.25%) or
At your lender’s offered mortgage rate plus 2%—whichever is higher.
For example, if your lender offers you a mortgage rate of 4%, you would have to qualify at 6%. If their 4% + 2% = 6% is higher than the Bank of Canada's 5.25%, you qualify at 6%. But if your lender's rate plus 2% doesn’t reach the Bank of Canada rate, you must qualify at the 5.25%.
Why is this important?
The stress test protects you if interest rates rise, ensuring you can comfortably afford your mortgage today—and tomorrow.
đź“ť Bottom Line
Getting pre-approved and understanding the mortgage stress test will give you confidence, set realistic expectations, and help you buy the right home for your future.
đź“ž Ready to Get Started?
If you’re thinking about buying a home, let’s start the smart way—with a pre-approval.
I can connect you with trusted mortgage professionals and guide you through every step of the journey.
📱 Call or text me at 204.960.7629
📧 Email: tatianavkennedy@gmail.com
Let's make your home dreams a reality! 🏡✨
