5 Major Mistakes to Avoid After Getting a Mortgage Pre-Approval in Canada 💳📉

Congratulations! You've taken a major step toward homeownership by getting pre-approved for a mortgage. But don’t relax just yet—this is where things can go sideways if you're not careful.

Lenders base pre-approvals on your current financial situation. If anything changes before your mortgage closes, your approval could be jeopardized—or worse, revoked.

In this guide, we’ll walk you through the top mistakes you need to avoid after receiving your pre-approval, and how to ensure a smooth journey from approval to keys-in-hand.

Mistake #1: Changing or Opening Credit Cards 💿

Avoid opening new credit cards or closing old ones, even if you’re offered a discount at a store.

Why this matters:

• Opening a new card causes a hard inquiry, lowering your credit score

• Closing an old account reduces your total available credit, raising your utilization ratio

Lenders want stability. Any changes to your credit can raise red flags and hurt your approval.

Mistake #2: Running Up Your Credit Balances 💸

Even if you pay your balance off every month, a spike in usage can lower your score temporarily.

Tips:

• Keep spending low and avoid large, unnecessary purchases

• Stick to your normal spending habits until your deal closes

You are literally under a microscope until the keys are in your hand.

Mistake #3: Changing Jobs 💼

Lenders look for stable employment history, ideally two years in the same field.

If you switch jobs:

• You may need to provide extra documentation (offer letters, contracts, etc.)

• Probation periods or variable income can cause delays or denials

If you must switch jobs, consult your mortgage broker first.

Mistake #4: Large Deposits Without Explanation 💵

Lenders monitor your accounts for unusual deposits. Large lump sums require explanation and documentation.

Examples:

• Gifted down payments from family

• Work bonuses or inheritance

If funds are a gift, they must be:

• Non-repayable

• Documented with a gift letter from the giver

When in doubt, talk to your broker before depositing anything unusual.

Mistake #5: Making Big Purchases Before Closing 🛖

Avoid buying furniture, appliances, or a new car before your home closes.

Why it’s risky:

• Increases your debt-to-income ratio

• Adds new credit inquiries

• Raises lender concerns about financial stability

Even if you're excited to move in, wait until after closing to make big purchases.

Mistake #6 (Bonus): Co-Signing for Someone Else ❌

When you co-sign a loan, you’re legally responsible for the payments. Even if you don’t make the payments, lenders will count the debt against you.

This affects:

• Your debt ratios

• Your mortgage approval

Politely decline if asked to co-sign during the process. You can revisit it after you close.

Final Thoughts: Keep Things Steady 📊

Lenders want to see that nothing has changed since your pre-approval. That means:

• No new debt

• No major spending

• No job changes

Keep everything as consistent as possible from pre-approval to closing. By avoiding these common mistakes, you’ll stay on track, reduce stress, and ensure a smooth path to homeownership.

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