23 Apr Why Mortgage Pre-Approvals Matter More Than Ever This Spring
The 2025 spring real estate season is building momentum across Abbotsford, Surrey, Langley, and surrounding BC communities. After a slow couple of years marked by high interest rates and market uncertainty, activity is rising again—driven by stabilizing fixed mortgage rates, increased inventory, and renewed buyer confidence.
In this competitive landscape, mortgage pre-approvals are not just helpful—they’re essential. Whether you’re a first-time buyer entering the market or a current homeowner looking to move, getting pre-approved can determine your ability to act quickly, negotiate effectively, and lock in a favourable mortgage rate.
Here’s why mortgage pre-approvals matter more than ever this spring—and how they can help you succeed in a fast-paced real estate environment.
The Market Is Waking Up in Abbotsford, Surrey, and Beyond
In early 2025, we’re already seeing signs of renewed energy in the BC housing market. Home sales in the Fraser Valley are trending up, according to the Fraser Valley Real Estate Board, with more listings hitting the market in March and April. Many buyers who held back during the peak-rate environment of 2023 are now returning, encouraged by slightly lower fixed rates and new federal incentives on the horizon.
At the same time, sellers are pricing more competitively and moving quickly to attract offers. This mix of buyer motivation and increased supply has led to a more balanced but fast-moving market in many parts of South Surrey, Clayton Heights, Central Abbotsford, and Langley Township.
In this climate, those who are prepared are at a clear advantage—and that starts with a solid mortgage pre-approval.
What Is a Mortgage Pre-Approval?
A mortgage pre-approval is a lender’s conditional commitment to lend you a specific amount based on your financial profile, including your income, credit score, debt levels, and employment status. It’s not a final approval, but it’s a powerful first step that allows you to:
- Understand your true homebuying budget
- Lock in a mortgage rate (typically for 90–120 days)
- Present yourself as a serious, qualified buyer
A pre-approval doesn’t cost you anything and won’t obligate you to a specific lender, but it does provide clarity, leverage, and protection as you begin your home search.
Why Pre-Approvals Matter More in 2025
- Buyers Are Competing Again
The spring market is always more active, but this year, it’s also more uncertain. With interest rate cuts paused and inflation still under watch, buyers are moving quickly when they find properties priced right. Homes that are staged, well-priced, and located in desirable school zones or commuter corridors are receiving multiple offers again, especially in areas like Willoughby, Fleetwood, and East Abbotsford.
Having a pre-approval in place:
- Shows the seller you are financially ready to proceed
- Strengthens your offer in competitive scenarios
- Reduces delays during the conditional period
In some cases, a pre-approved buyer may even be favoured over a higher offer that lacks financing assurance.
- It Locks in Your Rate as Bond Yields Shift
As of late April 2025, 5-year fixed mortgage rates are hovering between 4.59% and 4.79%, depending on the lender and product type. While these rates are more manageable than last year’s peaks, there’s no guarantee they’ll stay low.
A pre-approval protects you from rate increases while you shop. If rates drop further, your lender may offer a lower one—but if they rise, your pre-approved rate holds firm. This kind of rate security is especially valuable in a market that reacts quickly to economic news or Bank of Canada guidance.
- Stress Test Qualification Still Applies
Despite changes in affordability programs, the mortgage stress test remains in place for most borrowers in Canada. This means you must qualify at the higher of your contract rate plus 2%, or the benchmark qualifying rate.
Pre-approval helps you understand:
- How much you can actually borrow under current rules
- What your maximum purchase price is
- What monthly payments will look like under a realistic scenario
This is crucial if you’re targeting homes close to your budget ceiling or hoping to use rental suite income to help qualify.
- It Reduces Surprises and Delays
Getting pre-approved isn’t just about securing a rate—it’s about identifying potential issues early. During pre-approval, your broker or lender will review your documentation, such as:
- Employment history
- Credit report
- Debt levels
- Down payment sources
If anything is missing or needs correcting (like a low credit score or unexplained income source), you’ll have time to address it before making an offer. That can be the difference between closing smoothly—or watching your dream home go to someone else.
- It Aligns with New Incentives Coming Soon
The 2025 federal budget (expected April 28) is set to confirm or introduce multiple housing-related programs, including:
- GST exemption on newly built homes under $1 million (for first-time buyers)
- A revamped shared equity program for down payment support
- Grants and qualification flexibility for homes with legal secondary suites
Buyers who are pre-approved will be ready to act the moment these programs go live. Many of these incentives will have price caps and income limits—being pre-approved now helps you know exactly where you stand.
Pre-Approval in Local Context: BC’s Mid-Sized Markets
In Metro Vancouver-adjacent markets like Abbotsford, Surrey, and Langley, homes are still priced significantly lower than those in central urban cores, but prices have climbed steadily over the past decade. Detached homes, newer townhomes, and family-oriented properties in safe neighbourhoods are in high demand.
Pre-approval allows you to:
- Focus your search on homes that truly match your budget
- Be taken seriously by agents and sellers
- Move quickly when the right opportunity comes along
In communities where homes often sell in a matter of days — not weeks — pre-approval is your best preparation tool.
What Happens After You’re Pre-Approved?
Once you’re pre-approved, you’ll have a clear picture of what you can afford and how much a lender is willing to offer. But pre-approval is only the beginning — it’s your launchpad for taking decisive action in a fast-paced market.
Here’s what to do next:
Start House Hunting Within Your Budget
Stick to the pre-approved purchase range your mortgage broker or lender provided. It’s easy to stretch your expectations in a competitive market, but going above your limit could lead to financing delays or disappointments.
Focus your search in areas that align with your price point and lifestyle. In Abbotsford, this might include growing neighbourhoods like West Abbotsford or McMillan. In Surrey, keep an eye on Newton, Guildford, or South Clayton, where demand for family homes and townhouses remains high.
Keep Your Finances Stable
After receiving your pre-approval, avoid making major financial changes. This includes:
- Switching jobs
- Taking on new loans or credit cards
- Making large purchases on credit
Your lender will re-verify your financials during the final approval process, and any changes could impact your eligibility.
Stay in Contact With Your Mortgage Advisor
A good mortgage broker will continue to support you even after pre-approval. They’ll keep you updated on:
- Rate changes that could affect your approval
- New mortgage products or incentives
- How federal policy updates might apply to your situation
You’ll also want help navigating next steps like final approval, documentation, lender conditions, and closing costs.
FAQs – Mortgage Pre-Approvals in 2025
- How long does a mortgage pre-approval last?
Most pre-approvals are valid for 90 to 120 days, depending on the lender. During that time, your rate is locked in, giving you peace of mind while you shop. - Is pre-approval the same as mortgage approval?
No. Pre-approval is a conditional estimate based on your financial snapshot. Full mortgage approval happens once you’ve made an offer, submitted a property, and had your documents fully reviewed and verified by the lender. - Do I have to buy from the lender that pre-approved me?
No. You’re under no obligation to stick with the lender who gave you the pre-approval. A mortgage broker can still compare options when it’s time for final approval — and sometimes another lender may offer better terms at that point. - What documents do I need to get pre-approved?
You’ll typically need:
- Government-issued ID
- Proof of income (recent pay stubs or employment letter)
- Two years of tax returns (especially if self-employed)
- Bank statements showing your down payment
- A credit check (your broker or lender will handle this)
Your mortgage advisor can walk you through what’s required based on your specific situation.
- Can I get pre-approved if I’m self-employed or have variable income?
Yes — but you may need to provide more documentation, such as business financials or additional tax filings. A mortgage broker can help you find lenders that are experienced in self-employed underwriting. - Does a pre-approval affect my credit score?
A single pre-approval will involve a soft or hard credit check, but it won’t significantly impact your credit score. Multiple applications in a short period (through a broker) are usually treated as one inquiry by credit bureaus. - What happens if I can’t find a home before the pre-approval expires?
You can request a renewal or extension with your broker or lender, assuming your financial situation hasn’t changed. If your documents are still current, it’s often a simple update.
Final Thoughts: Be Ready, Not Reactive
In a market that’s gaining speed—and with major federal housing updates on the horizon—buyers who are pre-approved will be first in line for the best opportunities.
Whether you’re eyeing a presale townhouse in South Surrey, a resale home in East Abbotsford, or a family property in Langley, getting pre-approved allows you to act with confidence and speed. It gives you the clarity you need to compete, negotiate, and avoid financing surprises.
Remember: the market rewards preparation. And in 2025, mortgage pre-approval is your best preparation tool.