If you’re preparing to buy a home, getting pre-approved for a mortgage is a smart first step. But many buyers hesitate because they’ve heard that pre-approval could hurt their credit score. The truth is that the impact is small and usually temporary — and the benefits far outweigh the downside. Here’s what really happens to your credit when you get pre-approved for a mortgage in Canada.

1. What Happens During Pre-Approval?

When you apply for mortgage pre-approval, the lender reviews your financial profile. This includes your income, debts, and credit score. To do this, the lender performs what’s known as a hard credit inquiry. This shows up on your credit report and signals that you are applying for new credit.

2. How Much Does a Hard Inquiry Affect My Score?

A single hard inquiry usually lowers your credit score by 2 to 5 points. This dip is very small and temporary. Unless you’re applying for multiple types of credit at the same time (like a car loan, credit cards, and a mortgage all within a month), you won’t notice a significant change.

3. How to Minimize the Impact of Mortgage Shopping

The good news is that Canada’s credit reporting agencies recognize that people shop around for mortgages. If you make multiple mortgage applications within a short time — usually a 30 to 45 day window — they are treated as one inquiry. This means you can compare lenders without worrying about your score dropping each time. To keep your score healthy:

  • Do your mortgage shopping within a 45-day window.
  • Avoid applying for other forms of credit (like a new car loan) during the same period.
  • Keep up with payments on your existing accounts.

4. Why It’s Worth Getting Pre-Approved Anyway

Even with a tiny dip in your score, mortgage pre-approval offers major advantages:

  • Stronger offers: Sellers take you more seriously when they see you’re pre-approved.
  • Clear budget: You’ll know exactly what you can afford before shopping.
  • Rate holds: Many lenders lock in a rate for 90 to 120 days, protecting you if rates rise.
  • Smoother closing: Much of the paperwork is already done, which makes final approval faster.

The benefits of being pre-approved far outweigh the short-term effect on your credit score.

Final Thoughts

Yes, mortgage pre-approval has a small impact on your credit score, but it’s minimal and temporary. More importantly, it gives you confidence, bargaining power, and protection in a competitive housing market. If you’re serious about buying a home, don’t let credit worries stop you from getting pre-approved.

FAQs

1. Will mortgage pre-approval hurt my credit long term?
No. Hard inquiries stay on your report for two years but stop affecting your score after a few months.

2. Can I get pre-approved without a credit check?
Some online tools provide rough estimates without pulling your credit, but a full pre-approval requires a credit check to be valid with lenders.

3. How many times can I get pre-approved?
You can apply more than once, but group your applications within a 30–45 day window so they count as a single inquiry.

4. Does checking my own credit affect my score?
No. Checking your own credit through sites like Borrowell, Credit Karma, or ClearScore is considered a soft inquiry, which has no impact.