Understanding My 3-Step Mortgage Pre-Approval Process

Tim Lyon • May 9, 2024

Getting pre-approved is your first real step toward homeownership. It tells you what you can afford, gives you confidence when shopping, and shows sellers you're a serious buyer.


I've designed a thorough three-step process to ensure the pre-approval you receive is accurate and reliable. Unlike quick online estimates, I fully analyze your file the same way a lender will, catching potential issues early when we have time to fix them.


Here's how it works.


Step 1: The Discovery Call

Before anything else, we start with a conversation.
This is where I properly introduce myself and learn about what you’re trying to do, whether that’s buying your first home, upsizing, or planning a future purchase.

During this call, I’ll ask a lot of questions. This helps me understand:

  • Your financial situation
  • Your homeownership goals
  • Your comfort level with payments
  • Any potential challenges we should plan for

The better I understand your situation, the more accurate and relevant your pre-approval will be.


What to expect: 30-45 minutes. Come prepared to discuss your finances openly.


Step 2: Application and Documentation

After our call, I’ll send you a secure link to complete your mortgage application, along with a tailored document request list.


The Application

Many questions will seem familiar from our call. This redundancy is intentional - it helps me catch any discrepancies and ensures nothing slips through the cracks.


The Documents

This is the most tedious part, but it's essential. Everything on a mortgage application needs supporting documentation.

I'll provide a complete list with instructions. If you want to get an early idea of the type of documents that will be required. you can review my general document checklist here: Mortgage Pre-Approval Document Checklist


Critical rule: Do not edit, adjust, or redact any documents. Lenders need to see everything in its original form. Even innocent edits can cause delays or issues.


Step 3: Review and Pre-Approval

Once I’ve received your application and documents, I’ll get to work reviewing your file in detail. This is where I fully underwrite your pre-approval, meaning I look at your file the same way a lender ultimately will.


This approach lets me:

  • Identify any small issues early, such as:
  • Incorrect or outdated credit items
  • Down payment funds that aren’t readily accessible
  • Differences between actual income and what lenders will use
  • Low or borderline credit scores
  • Fix or plan around potential problems before they become deal-breakers later


After the review, I’ll send you a personalized video walkthrough of your pre-approval, outlining:

  • What you qualify for
  • The options available to you
  • My analysis and recommendations


I typically present 3–5 options so it’s clear and not overwhelming—but if you want to explore additional scenarios, I’m always happy to dig deeper.


Once you’ve received your video and pre-approval summary, you’re officially pre-approved.

At this point, you can shop with confidence.


What Makes My Pre-Approvals Different

My pre-approval is my expert analysis of what you'll qualify for, based on my thorough understanding of lender guidelines. At this stage, no lender has reviewed your file yet - that happens after you have an accepted offer.

You might wonder: "If a lender hasn't seen my file, how can I trust this?"


Here's why you can shop with confidence:


I analyze your file the exact same way a lender will. With access to over 50 lenders, I understand what each one looks for, how they calculate income, what down payment sources they accept, and their credit requirements.


I catch issues before they become problems. By thoroughly reviewing everything myself, I identify concerns early when we have time to address them - not when you're under pressure with an accepted offer.


I take responsibility for accuracy. When I tell you what you're pre-approved for, I'm putting my professional reputation behind that assessment.


This approach gives you flexibility. Once you find your property, we can choose the optimal lender for your specific situation rather than being locked into one lender from the start.

 

Quick Summary

My 3-step pre-approval process:

  1. Discovery Call: We discuss your goals and financial details.
  2. Application & Documents: You complete your application and send supporting documents.
  3. Full Review & Video Summary: I analyze your options, flag issues early, and send you a clear breakdown of your pre-approval.


Bonus: Every pre-approval I issue is fully underwritten so you can move forward with confidence and avoid last-minute stress.


Next Steps

If you’re ready to start your pre-approval or just want to understand your options, let’s set up a call.

Book a consultation or call 778-988-8409.

Tim Lyon

Mortgage Consultant

25 Year vs 30 Year Amortization: A Practical Guide

By Tim Lyon • January 25, 2026
Trying to choose between a 25 and 30 year mortgage amortization? Learn how each affects your payments, interest, and flexibility so you can decide with confidence.

How Rental Income Impacts Your Mortgage Approval (And Why Lender Choice Matters)

By Tim Lyon • January 20, 2026
If you are buying a home with a suite, keeping your current home as a rental, or already own a rental property, mortgage qualification can get confusing fast. The frustrating part is that you can do everything “right” and still get very different answers depending on which lender you talk to. Here’s a simple breakdown so you understand it and don’t miss out. What are Debt Service Ratios? In Canada, lenders qualify you using two main ratios: Gross Debt Service (GDS) This looks at housing costs only , typically: Mortgage payment Property taxes Heating 50% of strata fees (if applicable) GDS typically needs to be 39% or less of your gross income. Total Debt Service (TDS) This includes everything in GDS , plus other debts like: Car loans Credit cards Lines of credit Student loans TDS typically needs to be 44% or less of your gross income. These ratios are the foundation. If they do not work, the lender will not approve the mortgage, even with strong credit and a solid down payment. How Lenders Treat Rental Income Most people assume lenders look at rental properties based on simple cash flow (rent minus mortgage payment). In reality, most lenders use one of two methods: 1) Addback A percentage of the rental income is added to your gross income for qualification purposes. 2)Offset A percentage of the rental income is subtracted from the mortgage payment tied to the rental property. Different lenders use different percentages and different worksheets. That is why the same borrower can qualify with one lender and fail with another. Benefits of Understanding Lender Methods When you understand how rental income is calculated, you can: Avoid being under-qualified by a lender with conservative rules Get a more accurate picture of your real purchasing power Choose a lender that fits your situation (instead of forcing your situation to fit the lender) Important Considerations A few key points to keep in mind: Rental income is rarely counted at 100% , but some lenders are more generous than others. The method matters just as much as the percentage (addback vs offset). If you own multiple properties, lender worksheets can change the result dramatically. Your lender choice is a strategy decision , not just a rate decision. Real-World Example: Same Clients, Two Very Different Outcomes Here’s an example comparing lenders Scotiabank and Strive, using a fictitious couple: Scenario Household income: $160,000 Existing townhome: $800,000 value with a $525,000 mortgage ( $2,500/month payment) Market rent for the townhome: $3,400/month New purchase: property with a rental suite generating $1,800/month Down payment: 10% Other debts: student loan $165/month , car loan $500/month How Scotiabank viewed it For the townhome rental, they counted half the rent and subtracted the mortgage payment, leaving an $800/month shortfall that gets added into the debt ratios. For the new purchase, 50% of the suite income gets added to income. Max mortgage : $650,700 Max purchase price : $723,000 How Strive viewed it For the townhome rental, Strive used a rental worksheet and calculated $5.20/month of income that can be added to the application. For the new purchase, 100% of the suite income gets added to income, and they did not need to include taxes or heat. Max mortgage : $878,400 Max purchase price : $976,000 The result That’s a $253,000 difference in purchasing power , with the same clients, same income, same debts, and same properties. The difference was lender policy. Quick Summary GDS and TDS ratios are the backbone of mortgage qualification. Rental income is usually counted using Addback or Offset , and each lender handles this differently. Two lenders can produce wildly different results, even with the exact same file. In the example above, lender choice created a $253,000 swing in purchasing power. Next Steps If you are planning to: Buy a home with a suite Keep your current home and convert it to a rental Use rental income to qualify Reach out and I will run the numbers across multiple lenders so you see what you actually qualify for, not just what one lender will allow. Need help with your mortgage? Book a consultation or call 778-988-8409 . Glossary Addback : A method where a lender adds a percentage of rental income to your gross income for qualification. Gross Debt Service (GDS) : The ratio that measures housing costs as a percentage of gross income. Offset : A method where a lender subtracts a percentage of rental income from the rental property’s mortgage payment for qualification. Total Debt Service (TDS) : The ratio that measures housing costs plus other debts as a percentage of gross income.