Getting pre-approved for a mortgage feels like crossing a major item off your to-do list. It’s the green light to start looking at homes, right?

Not exactly.

At Merge Mortgage Group, we’ve seen too many buyers—especially those relocating to Alberta or moving within the province—rely on pre-approvals that weren’t worth the paper they were printed on. Why? Because they were based on assumptions, not verified facts. And when it came time to submit the real deal, everything fell apart.

If you're moving provinces, starting a new job, or buying in one of Alberta’s growing secondary markets, here's what you really need to know before trusting your pre-approval.

When a Pre-Approval Isn’t Really an Approval

A true pre-approval involves document review. That means income, credit, debt, and down payment sources are checked, verified, and confirmed. But many banks and even some brokers skip this part. Instead, they base their “approval” on what you tell them over the phone or in a quick meeting.

This is what’s called a conditional pre-approval. The lender holds a rate and says they’re generally comfortable with the numbers—if they’re accurate. But they don’t actually review your application in full until it becomes “live,” which means you’ve had an offer accepted on a property.

By then, it could be too late.

Real Story, Real Stress

We recently helped a client who had gone to their bank and been told they were pre-approved. No documents were submitted. Just a rough estimate of income, a casual mention of “minimal debt,” and an assumption that things looked fine.

They found a home they loved in Alberta and had their offer accepted.

But when their banker reviewed the actual paperwork, the reality hit:

They’d given gross income figures, not net (a major issue for self-employed applicants)
They owed CRA taxes that hadn’t been disclosed
They forgot about a personal line of credit that skewed their debt ratios

In the end, the bank pulled the plug—and they nearly lost the home.

Interprovincial Moves Add Even More Risk

One of the most commonly overlooked risks we see is when someone is moving to Alberta from another province. A simple change like relocating from BC or Ontario can drastically change your mortgage eligibility—especially if you're changing jobs in the process.

Many pre-approvals fail to consider:

Are you starting a new job in Alberta?
Is there a probation period?
Are you staying in the same industry or starting fresh?
Will your income be stable and sufficient long-term?

These are major factors lenders look at. If they weren’t addressed when your pre-approval was issued, the lender might decline your mortgage when your file goes live. And that can derail your plans at the worst possible moment.

Lenders aren’t just approving you—they’re making sure you can handle the cost of living and homeownership in your new province.

Other Reasons Pre-Approvals Fall Apart

Some of the most common issues we see include:

Incomplete or missing documents (like pay stubs or tax returns)
Undisclosed debt (including co-signed loans or new credit accounts)
Down payment sources that aren’t properly documented
Gifted funds from family that are actually repayable (this counts as debt)
Recent credit activity that changes your profile
Changes in income or employment

Even the home itself can be rejected by a lender. Properties in remote areas, condos with red-flagged buildings, or homes with inspection issues might not meet lender guidelines.

How Merge Mortgage Group Does It Differently

We don’t guess. We verify.

At Merge, we take the time to fully review your application up front. That means asking the hard questions, collecting real documentation, and running accurate numbers—not rough estimates. Whether you’re buying in Edmonton, building new in Airdrie, or relocating to Red Deer, we make sure your file is solid before you write an offer.

We’ll also help you plan around future risks. Thinking of switching jobs? Let’s talk about how that affects your approval. Not sure if that bank transfer will raise flags? We’ll walk you through it. We’ve worked with countless buyers relocating from across Canada—and we know what lenders need to see to say “yes.”

Buying in Alberta? Now’s the Time—But Be Ready

Alberta continues to attract buyers with affordable housing, no land transfer tax, low provincial taxes, and strong job growth. But the market is competitive. You need more than just a rate hold—you need a strategy.

Let’s Make Sure Your Pre-Approval Holds Up

Whether you're moving to Alberta for work, downsizing within the province, or buying your first or second property, we’ll make sure your pre-approval is based on facts, not guesses. That’s the Merge difference: reliable advice, verified numbers, and real support through every step.

📞 Call us at 587.370.4311
📧 Email jarrod@mergemortgage.ca

Let’s talk about your move—and build a mortgage plan that actually works.

The Hidden Risks of a Bad Pre-Approval—and What to Do About It