Most buyers think their income is the only thing standing between them and a bigger mortgage. That is only half true.

Lenders care about how much you earn, but what really matters is how your finances look on paper. With the right structure, you can boost your borrowing power without waiting for a raise or working overtime.

This article shows you how to qualify for more by playing smarter, not harder. We will cover debt restructuring, income splitting, and cash flow tactics your bank will rarely tell you about.

Let’s break it down.

The Math That Matters

When lenders review a mortgage application, they focus on two critical ratios:

GDS (Gross Debt Service) – This measures the percentage of your gross income that goes toward your housing costs. It includes your mortgage payment, property taxes, and heating costs.

TDS (Total Debt Service) – This adds all other monthly debt obligations to the GDS. That includes car loans, credit cards, student loans, and lines of credit.

If these ratios climb above the limits (usually 39 percent for GDS and 44 percent for TDS) your application gets capped regardless of what you think you can handle.

The secret is not to earn more money, but to improve those ratios by changing how your debts and cash flow are structured.

Tactic 1: Consolidate High-Interest Debt

A car loan at eight percent or a credit card at twenty percent destroys your TDS ratio. High payments eat into your borrowing power even if the balances are not massive.

The solution is to refinance into a lower-rate loan or a secured line of credit. In some cases, it may even make sense to use part of your down payment to clear out the debt first. The tradeoff is a slightly smaller down payment, but you may qualify for a higher purchase price overall.

The benefits are clear:

• Lower monthly payments
• Less interest draining your finances
• A stronger borrowing profile

Lenders do not care about the total balance as much as they care about the monthly obligation. Reducing the payment is what makes the difference.

Tactic 2: Spousal Income Splitting

If your partner earns income but is not on title, or if one spouse has high income with equally high debt while the other has modest income with no debt, you may be leaving borrowing power unused.

By splitting ownership and mortgage responsibility strategically, you can lower the combined TDS ratio and unlock higher qualification limits.

There is a bonus here as well. Coordinating ownership and income properly can also open the door to tax strategies such as spousal RRSP contributions and income balancing with the Canada Revenue Agency. A smart mortgage plan can double as a smart tax plan.

Tactic 3: Optimize Cash Flow Timing

Lenders assess you based on monthly obligations, not your bank account balance. By adjusting how those obligations are structured, you can change the picture the lender sees.

Here are some ideas to improve your profile:

• Extend amortizations on rental properties so the declared monthly payments shrink.
• Convert variable loans into interest-only payments, such as with a HELOC.
• Stretch out car payments to reduce the monthly amount, even if only temporarily.

Yes, this may result in more interest paid over the long run, but if your immediate goal is to qualify higher, it can be worth the tradeoff. Once the mortgage is secured, you can always revisit the payment terms later.

Tactic 4: Add Non-Traditional Income

Many borrowers overlook income sources that lenders are willing to count. These include:

• Child tax benefits
• Spousal or child support (with proper documentation)
• Rental income from legal suites or verified roommates
• Side hustle income, provided it has been declared for at least two tax years

The key is proper documentation and lender positioning. A skilled mortgage broker knows which lenders will recognize these income sources and how to present them so they strengthen your application.

What to Watch Out For

Do not over-leverage. Qualifying for more does not automatically mean you can afford more. A bigger mortgage comes with bigger risks if your cash flow is stretched thin.

Avoid short-term hacks as permanent solutions. Extending amortizations or making minimum debt payments are tools, not lifestyles. They should be used strategically to qualify and then reviewed once the mortgage is in place.

Get structured before you shop. Too many buyers get pre-approved before optimizing their finances. The structure of your application often matters more than the interest rate at this stage.

Final Take

You do not need to earn more to qualify for more. You need to show up better on paper.

Most buyers walk into a bank, accept the number they are given, and assume it is fixed. Smart buyers restructure their debts, rework their ratios, and unlock an extra fifty thousand to one hundred fifty thousand dollars of borrowing capacity without earning a penny more.

The difference is not income. The difference is strategy.

Written by the marketing team at BBM

Most borrowers sleepwalk into renewal. They get a reminder from their lender, sign whatever shows up, and move on. That habit can cost thousands in unnecessary interest. A renewal is one of the few moments where you can renegotiate from a position of real strength. The lender wants to keep your business, and you have time to set the terms.

This is your five-year preparation checklist to make sure you capture the savings that many borrowers leave behind.

Review Your Financial Position Early

Start looking at your renewal window six to twelve months in advance. This gives you space to update documentation, tidy up debt, and position your application for the best pricing.

Review:

• Income stability and recent tax filings
• Credit score trends
• Large purchases or loans you’re planning
• Any changes in employment structure

A clean financial picture broadens your lender options, which increases your leverage when negotiating.

Stress-Test Your Cash Flow

Renewals are an opportunity to revisit your payment strategy. Take a fresh look at:

• Monthly surplus or shortfall
• Opportunities to accelerate repayment
• How rising or falling rates interact with your household budget
• Whether variable or fixed aligns with your risk tolerance today

Even a small prepayment change can create thousands in long-term interest savings.

Reassess Your Mortgage Strategy

Your life rarely looks the same five years later. Your mortgage shouldn’t either. Step back and evaluate:

• Whether you still need maximum flexibility
• If a shorter term serves your upcoming plans
• Whether it’s time to start segmenting debt for tax efficiency
• If converting to a HELOC or hybrid structure supports investment goals

This is the point where borrowers can correct mistakes from the previous term and set up the next stage of their financial plan.

Benchmark Rates Before You Negotiate

Never go into a renewal blind. Know exactly where market pricing sits and how your lender compares.

Check:

• Bank posted rates versus discretionary rates
• Credit unions and monoline lender offerings
• High-ratio versus conventional pricing spreads
• Whether any retention incentives are circulating in the market

This lets you challenge a weak renewal offer with confidence.

Audit Your Penalties and Fine Print

Even at renewal, your existing contract may influence your options. Review items like:

• Prepayment privileges
• Penalty structures
• Portability terms
• Restrictions on early refinance before the renewal date

Understanding these rules helps you avoid missteps, especially if you need to make changes ahead of the formal renewal window.

Decide if It’s Time to Switch Lenders

Loyalty only helps when it pays you back. If your lender won’t match competitive offers or address structural needs, moving the mortgage may be the better long-term decision. Switching can open access to lower rates, better features, or products designed for investors and self-employed borrowers.

The key is to compare total interest cost over the next term, not just the immediate payment difference.

Final Takeaway

A well-prepared renewal puts you in control. It keeps your options open, sharpens your negotiating position, and sets up the next five years of your financial plan with intention. The strongest outcomes happen when borrowers start early and treat renewal as a strategic moment, not a formality.

Written by the marketing team at BBM

Canada enters 2026 with a housing landscape that looks very different from the one earlier in the decade. Rising inventory, regional divergence, and a wave of higher-cost renewals are shaping how buyers, sellers, and investors prepare for the year ahead.

Inventory Is Rising in Key Provinces

The most significant shift heading into 2026 is the increase in resale listings. Ontario and British Columbia now show their highest inventory levels in more than a decade. Homes are spending more time on the market and buyers have more negotiating room.
This does not mean Canada has excess housing. It signals a more balanced environment that creates opportunities for households who struggled during the peak bidding years.

Construction Patterns Are Rebalancing

Developers are reacting to the new conditions. Some overheated markets are seeing fewer new starts, while other regions are experiencing more purpose-built rental and mid-density projects.
These changes affect how quickly new supply becomes available, how affordability evolves, and how regional markets absorb the units already underway.

Renewals Become a Major Financial Pressure Point

Many borrowers who secured very low rates earlier in the decade now face higher payments at renewal. The size of the reset varies by product type, household income, and region.
Some owners may decide to list properties they can no longer comfortably carry. Others will manage the increase by extending amortizations or choosing a different mortgage structure.

Investors Are Repositioning for Stability

Investor behaviour is also shifting. Some are pausing acquisitions in high-priced metropolitan areas and focusing on secondary markets with stronger rent fundamentals and more predictable long-term demand.
Regions that attract young families, skilled workers, and new arrivals continue to show the most resilient potential. Population stability supports both rental performance and resale activity.

Affordability Depends on Local Fundamentals

Affordability is improving in some parts of the country but remains challenging in others. Wage growth, easing inflation, and modest rate relief help, but conditions vary from region to region.
The factors shaping price stability in Halifax look different from those shaping Calgary, Toronto, or Vancouver. Understanding local fundamentals matters more than it has at any point in the past five years.

A More Segmented Market Emerges

Canada is not heading toward a single national outcome in 2026. It is moving toward a more segmented environment where performance depends on regional supply, migration patterns, labour conditions, and renewal exposure.
Those who understand these underlying forces will be better positioned to navigate the year ahead.

Written by the team at BBM

You’ve got two choices:

• Save for years to hit 20% down.
• Buy with 5% down and get in the market now.

Both come with baggage. One delays your wealth. The other costs more to build it.

If you’re staring down today’s home prices thinking “I’ll never save enough”—you’re not alone. But before you jump into a 5% down mortgage, understand this:

Getting in early isn’t free. It just feels like it.

Let’s break down exactly how low-down payment mortgages work, where they help, and where they bite you.

⚙️ The Mechanics: How 5% Down Works in Canada

Here’s what CMHC and the other insurers allow:

• Under $500,000? Minimum 5% down.
• $500K to $999K? 5% on the first $500K + 10% on the rest.
• Up to $1.5 million? As of December 15, 2024, you can now qualify for an insured mortgage—with the same down payment structure: 5% on the first $500K and 10% on the portion between $500K and $1.5 million.

This new $1.5M cap opens the door for more buyers in high-cost markets to enter the game with a smaller upfront investment.

And if you put down less than 20%, you’re taking on default insurance—a premium tacked onto your mortgage. That cost? Between 2.8% and 4% of the loan, depending on your down payment. And yes, it’s usually rolled in, which means you pay interest on the insurance too.

✅ What You Gain by Putting Down Less

1. Faster Market Access Waiting to save 20% while home prices climb is like trying to fill a leaky bucket. A 5% down payment gets you in the game now, not 3 years from now when prices are higher and you’re still behind.

2. Insured Mortgage = Lower Rates Lenders love insured mortgages. The risk’s off their books. That means they’ll often give you better interest rates than someone with 20% down and no insurance.

3. Optionality Buying with 5% down doesn’t lock up your liquidity. You keep cash in the bank. And if life happens—job change, relationship shift, whatever—you’re not deep underwater.

❌ What You Sacrifice (and It’s Not Small)

1. Higher Monthly Payments You’re borrowing more. And adding insurance to your loan. That’s a double whammy. The monthly hit is higher—no way around it.

2. More Interest Over Time Bigger mortgage = more interest. Even if your rate is sharper, the total interest paid is higher because your loan balance is bloated.

3. Slower Equity Buildup In the first few years, you’re barely touching principal. Most of your payment feeds the bank. Add that to the higher balance and you’re building wealth at a crawl.

4. Less Refinance Flexibility Insured mortgages restrict your options. Want to pull equity out later? Refinance with a different lender? Good luck. Your flexibility is capped unless you re-qualify and re-insure (if even allowed).

📈 The Power of Leverage: Turning 5% into 20%

With 5% down, you’re getting 20x leverage on your money. That means for every 1% the property value increases, you get a 20% return on your initial investment.

Let’s break it down:

• Purchase Price: $300,000
• Down Payment (5%): $15,000
• If the property value rises 1% to $303,000, that’s a $3,000 gain.
• Return on your $15,000 down payment? 20% ($3,000 ÷ $15,000)

This is one of the reasons homeownership often outpaces renting in the long run. Even modest price increases can significantly boost your equity when you’re highly leveraged.

Think about it: If you had to save 100% of the cash to buy the property, do you realistically believe you would ever be able to own a home? Depending on market conditions, the longer you wait, the more ground you could lose.

🛡️ Default Insurance: Your Hidden Safety Net

Most people think mortgage default insurance only protects the lender. But it can also protect you.

Some insurers offer support programs to help homeowners through temporary financial troubles—like a job loss, illness, divorce, or natural disaster. These programs typically work by:

• Offering payment deferrals during a tough period
• Extending amortization periods to lower payments
• Setting up shared payment plans (where the insurer covers part of the mortgage payment)
• Adding missed payments to the loan balance (capitalizing arrears)
• Restructuring mortgage terms to fit a new financial reality

For example, Sagen’s Homeowner Assistance Program (HOAP) has helped over 63,000 Canadian families avoid losing their homes, with a success rate of over 90% .

Knowing that your default insurance can act as a safety net if unexpected hardships arise can provide extra peace of mind.

🎯 The Real Question

Do you want in now—knowing the trade-offs—or do you want to wait, save more, and potentially miss out?

There’s no right answer.

If your income is stable, you’re staying put for 5+ years, and you’ve stress-tested your budget? 5% down might be a smart move.

But if you’re stretching, or banking on appreciation to bail you out? Be careful. A hot market can cool. And higher payments don’t feel so hot when rates jump or life gets messy.

Final Take

Buying with 5% down is like using a credit card to grab a seat at the wealth table. You’ll pay for it—but you’ll own something.

It’s not free. It’s not cheap. But it might be smarter than waiting—depending on your market, your goals, and your risk tolerance.

So don’t ask, “Can I buy with 5%?” Ask: “What will it cost me if I don’t?”

Then run the numbers. Talk to a real mortgage strategist. And make the move that sets you up, not sets you back.

Written by the team at BBM

For many Canadians, income no longer comes from a single source. Between side hustles, rental suites, investments, and government benefits, household income today is more diverse than ever, and that can actually strengthen your mortgage application.

Most people assume lenders only care about their job salary. In reality, many lenders consider other steady and verifiable income sources when determining how much you qualify for. The key is in how your income is documented and presented, which is where an experienced broker becomes essential.

Why It Matters

Expanding your income story can increase your qualifying amount or help you secure better terms. Lenders need proof that your income is consistent and reliable. This could include:

• Two years of tax returns for freelance or seasonal work
• CRA notices confirming Canada Child Benefit or CPP income
• Lease agreements and deposit history for a suite or rental property

The stronger your documentation, the better your chances of having every dollar count toward your approval.

Income Sources That May Qualify

Here are some of the most common income types lenders may include in their assessment:

• Rental or Suite Income. Many lenders allow 50 to 100 percent of rental income if supported by a lease and market rent letter.
• Government Benefits. CPP, OAS, and the Canada Child Benefit often qualify if supported by CRA documentation.
• Pension and Disability Payments. Steady payments supported by T-slips or bank records are often accepted.
• Investment Income. Dividends or interest income can qualify if they are consistent and declared on your tax return.
• Side Hustle or Freelance Work. Qualifies when supported by at least two years of verifiable income history.

Documentation Is Key

Mortgage approval depends on proof of income. A clear paper trail of tax returns, benefit statements, or lease agreements shows lenders that your income is both real and stable. Every piece of documentation strengthens your application and helps lenders see your full financial picture.

The Broker Advantage

Not all lenders view income the same way. Some will count all rental income, while others use only a portion. Certain lenders include child benefits or pension income, while others do not. A knowledgeable broker understands these differences and knows which lenders are most flexible. By matching your income mix to the right policy, they help you qualify with confidence and avoid unnecessary setbacks.

The Bottom Line

If you earn money outside your main job, do not overlook its potential. With proper documentation and expert guidance, those extra earnings could turn into buying power that helps you secure your next home.

Written by the team at BB