Pre-qualification and pre-approval are two different steps in the mortgage application process.
Pre-qualification is the initial step in the process, in which a lender will ask you for basic information about your income, debt, and assets. Based on this information, the lender will give you an estimate of how much you might be able to borrow. Pre-qualification is typically done online or over the phone and is a relatively quick process.
Pre-approval, on the other hand, is a more detailed process that involves submitting documentation to the lender to verify your income, assets, and creditworthiness. This typically involves filling out an application and providing documentation such as T-4's, tax returns, bank statements, and pay stubs. The lender will then review your application and credit history to determine how much they are willing to lend you and at what interest rate.
Pre-approval is more thorough than pre-qualification and provides a more accurate estimate of how much you can borrow. It also gives you a better idea of what your interest rate and monthly mortgage payment might be. Because pre-approval requires more documentation and a more detailed review by the lender, it typically takes longer than pre-qualification.
In summary, pre-qualification is a quick estimate of how much you might be able to borrow, while pre-approval is a more thorough process that provides a more accurate estimate of how much you can borrow and at what interest rate.