How to Increase Your Mortgage Amount: 8 Ways to Qualify for More

When a pre-approval comes back lower than expected, the amount is set by a handful of inputs: gross income, other debt payments, the qualifying rate, the amortization and the housing costs of the property. Changing any one of them changes the result. This page lists the eight levers and links each one to the page that covers it in full. It is part of the mortgage lenders and brokers guide.

What sets the qualifying amount

The ceiling comes from two ratio limits, one for housing costs alone and one for housing costs plus every other debt payment. For an insured mortgage, CMHC caps your housing costs at 39% of gross income (GDS) and your housing costs plus other debt payments at 44% (TDS); lenders set their own limits for uninsured mortgages. Both are calculated at the qualifying rate. Lenders check that you could afford the payments at the greater of your contract rate plus 2% or 5.25%, a floor set by OSFI for uninsured mortgages and by the federal government's mortgage insurance rules (the Minister of Finance's Eligible Mortgage Loan Regulations) for insured ones.

GDS and TDS explained shows the calculation, the mortgage stress test guide covers the qualifying rate, and the mortgage affordability calculator runs the numbers for a specific income and debt load.

1. Lower your other debt payments

Every dollar of monthly debt payment removed frees room in the TDS ratio for a larger mortgage payment. For an insured mortgage, CMHC sets how a revolving balance counts, even when the card’s own minimum payment is lower. Unsecured lines of credit and credit cards count at a monthly payment of at least 3% of the balance. How credit card debt affects mortgage approval works through the effect, and buying a home with student debt covers student loans.

2. Extend the amortization

A longer amortization lowers the monthly payment, which lowers both ratios, at the cost of more interest over the life of the mortgage. On an insured mortgage the maximum is 25 years, or 30 years for all first-time buyers and for buyers of new builds since December 15, 2024 (Finance Canada); with 20% or more down, the lender sets the maximum. The 30-year amortization rules cover eligibility, and 25 vs 30-year amortization compares the payment and the total interest.

3. Add a co-borrower or guarantor

A co-borrower’s income is added to the application and they share ownership and responsibility for the debt; a guarantor backs the loan without usually going on title, and not every lender accepts one. Co-signing a mortgage covers both roles and their risks, and before you add someone to your mortgage covers adding a person to an existing mortgage or title.

4. Increase the down payment

A larger down payment lowers the amount borrowed, and once it reaches 20% it also removes the mortgage insurance premium that would otherwise be added to the loan. The down payment calculator covers the minimums and how different amounts change the mortgage, and CMHC insurance has the premium schedule. Common sources are the FHSA, the Home Buyers’ Plan, a documented gift from family and the sale of other assets.

5. Improve your credit

With a mainstream lender, a better score doesn’t change the ratio limits, but it widens the choice of lenders and can lower the rate, and a lower rate lowers the payment the ratios are tested on. For a CMHC-insured purchase, at least one borrower or guarantor needs a credit score of 600 or more; CMHC may use other ways to judge creditworthiness for a borrower with no credit history. Improving your credit score before a mortgage covers what moves a score and how long it takes, and credit utilization covers the balance-to-limit ratio.

6. Document all of your income

Overtime, bonuses and commissions usually count when they have a two-year history on T4s and Notices of Assessment, so a complete employment letter that lists them separately can raise qualifying income. Rental income from a suite in the home can also count; how rental income counts toward a mortgage covers the rules, and mortgages for self-employed borrowers covers business income. A job change partway through the process resets some of this; see changing jobs while mortgage shopping.

7. Get a lower rate

Because the qualifying rate is built from the contract rate (see the stress test rule above), a lower contract rate can raise the qualifying amount, unless the qualifying rate is already at its floor; a lower rate also lowers the actual payment either way. Current mortgage rates shows where rates are, mortgage negotiation tactics covers how borrowers get a lender to move, and banks versus monoline lenders covers one way to widen the comparison. Questions to ask a lender or broker lists what to compare beyond the rate.

8. Change the property

The property’s own costs (property tax, heating, condo fees) sit in both ratios, so a home with lower carrying costs, a smaller or attached home, or a less expensive neighbouring market can fit where the first choice didn’t. The rent vs buy calculator compares the cost of waiting with buying a different home.

What doesn’t work

Related resources

• Mortgage affordability calculator: full affordability estimate
• Mortgage stress test calculator: the qualifying payment
• Mortgage calculator: monthly payment estimates
• First-time home buyer guide: the full buying process