5 Pre-Approval Mistakes Greater Vancouver Buyers Keep Making

1) Using outdated pay stubs or old tax documents

Lenders need recent, consistent proof of income. If your paperwork is several months old (e.g., seasonal bonus not repeated) your approved amount may change. Always provide the latest T4s, recent pay stubs, and for self‑employed borrowers last two years’ financials prepared consistently.

2) Ignoring the stress test in planning

Many buyers focus on advertised rates rather than the qualifying rate used in the stress test. This mismatch produces pre‑approvals that look good until the stress test reduces your actual qualifying amount. Always ask your broker which qualifying rate they used and model both scenarios.

3) Not disclosing temporary income changes

If you recently changed jobs, received a short-term raise, or lost freelance clients, failing to disclose this can cause surprise rejections at final underwriting. Lenders value consistency—be transparent and provide context and supporting documents.

4) Overlooking non-mortgage debts and credit impacts

Car loans, lines of credit, and high credit-card balances reduce your borrowing capacity. Small monthly obligations add up; paying down high-interest debts before application often increases the approved amount materially.

5) Assuming rate holds mean approval is guaranteed

A rate hold reserves a product but not guarantee final underwriting. If your credit or income changes before closing, the hold may be void. Treat holds as conditional and keep finances stable until funds transfer.