Mortgage Pre-Approval - TD Canada Trust (2024)

FAQs

Does TD bank do pre-approval? ›

If you can, obtain preapproval or prequalification for a card you're interested in. It doesn't necessarily guarantee you'll be formally approved, but you can receive details on your potential rates, terms and card benefits.

A person making $70,000 may be able to afford a mortgage around $400,000. The mortgage amount you'll qualify for ultimately depends on your credit score, debt and current interest rates.

A TD mortgage pre-approval on the other hand, is in-depth. It includes a more thorough assessment of your finances. It also offers a rate hold of up to 120 days (subject to conditions), while a pre-qualification does not. Plus, if you apply for a TD mortgage pre-approval online, it has no impact on your credit score.

TD Bank doesn't publish specific minimum credit score requirements for personal loans. Based on our research, some borrowers with fair credit scores in the mid-600s may be approved. Like with most lenders, a better credit score improves your approval odds and helps you secure the best interest rates and terms.

Credit Score Requirements

If you have poor or bad credit, you likely will be considered too high risk and not be approved for a score. To be approved for a personal loan from TD Bank you should aim to have a credit score of 660 or higher.

With your monthly household expenses amounting to $3,603, this means the required minimum income for a 500K mortgage under the Stress Test is $136,000 per year. This could also be two salaries of $68,000 per year. Don't forget about any debts, keeping in mind they should not exceed 40% of your monthly household income.

The 28/36 rule

This guideline states that you should spend no more than 28 percent of your income on housing costs, and no more than 36 percent on your total debt payments, including housing costs. (So that would also include credit card bills, car payments and any other debt you may carry.)

The Bottom Line. To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage. Remember, just because you can qualify for a loan doesn't mean you should stretch your budget to the maximum.

A mortgage preapproval can have a hard inquiry on your credit score if you end up applying for the credit. Although a preapproval may affect your credit score, it plays an important step in the home buying process and is recommended to have. The good news is that this ding on your credit score is only temporary.

Does pre-approval include down payment? ›

The pre-approval process requires copies of your pay stubs as proof of income, a financial background check, bank statements, down payment amount, desired mortgage amount, tax information, and so on.

If you want to compare offers, try to get preapproved by multiple lenders within a 45-day period to limit the impact on your credit score. Once the lender assesses your credit and financial profile, it'll decide whether you're preapproved for a mortgage.

From your credit card account activity page, click on the Manage tab. Your pre-approved credit limit offer is located just below your current credit limit. Follow the steps from there to consent to the credit limit increase. It's that easy.

Generally speaking, you'll likely need a score of at least 620 — what's classified as a “fair” rating — to qualify with most lenders. With a Federal Housing Administration (FHA) loan, though, you might be able to get approved with a score as low as 500.

TD Bank mainly uses Experian to assess your creditworthiness when you apply for a credit card, though they may use TransUnion, Equifax instead, according to forum reports. So, if any of your credit reports are frozen, you should unfreeze them before applying for a TD Bank credit card.

You need a credit score of 750 or higher to get approved for most TD Bank credit cards, since they require excellent credit to qualify. In addition to an excellent credit score, you'll need to have a steady income to show that you can afford the monthly payments on a new TD Bank credit card.

Log in to EasyWeb. If you're not already registered, you can register here. From your credit card account activity page, click on the Manage tab. Your pre-approved credit limit offer is located just below your current credit limit.

What are the credit limits for the different credit cards? The minimum credit limit is $500 with a maximum of $25,000 for the TD Cash Visa and TD Business Solutions Visa^® Cards. For TD Visa Signature benefits, the credit limit must be $5,000 or greater.

Some TD Bank credit cards are hard to get because they require at least excellent credit, which means you need a credit score of 750+ for good approval odds. Other TD Bank credit cards are easier for people with lower credit scores to get approved for, so it's important to choose wisely.