How much can I actually borrow?
There is no universal multiple of your income. Lenders work out how much you can reliably put toward debt each month, then work backwards to a loan amount. The same income and the same house can produce very different numbers at different lenders.
Last updated 2026-08-12
What is the lender actually calculating?
Two ratios: what the home costs you as a share of your income, and what all of your debt costs you as a share of your income. The industry calls these GDS and TDS, and most lenders cap both, with the actual limits varying by lender and product.
Housing costs are not just the mortgage payment. Property taxes, heat and a share of condo fees all count, and they quietly reduce how much you qualify for.
What income counts?
Income that is stable, verifiable and likely to continue. Salary is the cleanest. Overtime, commission and bonus generally need a two year history and get averaged.
Self-employed income runs on a different track. Most lenders look at net income after write-offs, not gross revenue. If you write a lot down, the bank reads the tax return, and that is not the only way to read it.
How much do my car loan and credit cards cost me?
More than most people expect. Every monthly obligation comes straight out of the room you have for a mortgage payment.
Lines of credit and cards are usually counted at an assumed payment even when you carry no balance. For illustration only: a $700 car payment can shift a qualifying amount by a six figure sum. How much depends on the file.
How does the down payment affect what I can buy?
It sets two things: the size of the loan, and whether default insurance is required. Generally, less than 20 percent down puts you in the insured category.
The less obvious effect is on which lenders and products are open to you at all. The same person with 20 percent down and with 10 percent down is shopping in two different markets.
Does a longer amortization let me borrow more?
Yes, at the cost of more total interest. A longer amortization lowers the monthly payment, which raises the amount you qualify for.
That is a trade, not free money. Longer amortizations are available in some situations, and eligibility depends on the lender and on whether the mortgage is insured.
Why is the online calculator's number wrong?
Because it does not know your debts, your credit history, or how your income is structured. A calculator models an average person. A lender underwrites you.
The gap usually hides in details: a student loan you forgot, a card you co-signed for someone, a corporation that is only a year old. None of that exists in the calculator. All of it exists in the file.
If my tax return shows very little, am I out of luck?
No, but the route is different. Banks read T4s and tax returns, and that is one method. There are also products built for self-employed borrowers that read the picture another way.
Those usually ask for a larger down payment or come with different pricing. Whether they fit, and whether they are worth it, depends on the documents, and not everyone qualifies. Put the paperwork on the table once and the answer for your situation gets clear.
Common questions
What credit score do I need?
There is no single pass mark, and it varies by lender and product. The pattern matters more than the number: missed payments, how much of your limits you use, and how long the accounts have been open.
Is a pre-approval the same as being approved?
No. A pre-approval is generally a preliminary assessment based on what you have told the lender. Final approval still depends on documents and on the specific property.
Does rental income count?
Usually part of it does, but most lenders only recognize a portion, and they want a lease or tax filings to support it. Treatment varies quite a bit between lenders.
My spouse has weak credit. Can I apply alone?
You can, but your income has to carry the whole mortgage on its own. Sometimes including them still produces a better result. It depends on the numbers.
Can my parents gift the down payment?
A gift from an immediate family member is accepted by most lenders, generally with a signed gift letter confirming the money does not have to be repaid. The source of funds needs to be traceable.
Does foreign income count?
It depends on the lender, usually requires more documentation, and narrows your options. Worth sorting out before you start looking at homes.
How does this land on your file?
The above is general. How it works out for you takes about ten minutes on the phone.
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