A Decision in Principle (DIP), or Agreement in Principle (AIP), is a certificate from a lender that confirms the amount they may be willing to lend you.
A DIP is not a mortgage offer.

It’s important to understand that a DIP doesn’t bind either you or the lender to the mortgage. You may decide to keep exploring other options, or your circumstances could change after receiving the AIP. While an AIP is not a guarantee of approval, it’s an essential first step in the mortgage application process.

This is where credit checks come in.

The DIP decision is based on affordability and credit checks. The lender may perform a credit search by accessing their system, and this search will appear on your credit report under the lender’s name, not the broker's.

Some lenders may only require a soft credit check, which won’t affect your credit file. In these cases, it may be beneficial to apply for an AIP that doesn’t leave a hard footprint on your credit.
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