Yes, but barely. A mortgage pre-approval in Canada triggers one hard credit inquiry, which can lower your credit score by roughly 5 to 10 points. The dip is temporary, and for most buyers the score recovers within a few months of normal payment behaviour.
The distinction that matters is hard versus soft. When you pre-qualify online using numbers you type in yourself, the lender usually runs a soft check, and a soft check has no effect on your score at all. A full pre-approval is different. The lender verifies your income, your debts, and your credit history through Equifax or TransUnion, and that verification is recorded as a hard inquiry. Hard inquiries sit on your credit report for three years in Canada, though their influence on your score fades and is generally negligible after the first twelve months. If you are not sure which version you have, our guide to the difference between pre-qualification and pre-approval walks through it.
Comparing lenders is safer than most people assume. The credit bureaus recognize that a buyer shopping for one mortgage is not the same as someone opening five credit cards. Equifax treats multiple mortgage inquiries made within roughly 14 days as a single inquiry. TransUnion uses a longer window, closer to 45 days. Do your rate comparisons inside a few weeks and the combined effect on your credit is essentially one small dent.
That small dent is worth taking. A pre-approval tells you what you can actually borrow before you commit emotionally to a place you cannot afford, and it usually comes with a rate hold of 90 to 130 days. There is a reason we tell buyers to get pre-approved before looking at homes.
What actually damages your credit during a home search is not the pre-approval. It is new debt. A financed car, a fresh credit card, or a missed payment between pre-approval and closing can shrink what a lender will advance, because most lenders re-check your credit before funding. Keep your file quiet and the inquiry itself will not be what stands between you and a mortgage. If your score is already borderline, start with what credit score you need to buy a home in Canada to see where you sit.
Related reading: Should You Get Pre-Approved Before Looking at Homes?, What Credit Score Do You Need to Buy a Home in Canada?, and What Is a Mortgage Rate Hold and How Long Does It Last in Canada?.