Why High Income Doesn’t Automatically Mean a Bigger Mortgage

Josh Perez • December 18, 2025

Most people assume a bigger paycheck leads to a bigger mortgage approval.


But here’s the truth that surprises almost everyone:

“It’s not about how much you earn. It’s about how much of your income is already spoken for.” — Josh Perez

I’ve sat across from clients earning six figures who qualified for less than someone making half as much.


The problem wasn’t their income.


It was their monthly obligations.


Lenders Don’t Just Look at Income — They Look at What’s Left Over

You can make $200,000 a year, but if $80,000 of it is tied up in payments, lenders see very little room for a mortgage.

Here’s what typically eats up that space:

  • Big car loans
  • Multiple credit cards
  • Buy-now-pay-later plans
  • Personal loans
  • Lines of credit
  • Old debts that still report monthly payments


These commitments matter because lenders are focused on one main calculation:


Debt-to-Income Ratio (DTI)

This tells lenders how much of your income is already locked into payments — and how much is available for a mortgage.

A high DTI = lower mortgage approval
A low DTI = stronger approval and better options

It’s that simple.


Want to Qualify for More? Do This First

Most people think they need to increase their income.
The truth? Reducing debt often has a bigger impact — and works faster.


1. Pay down or eliminate high monthly payments

Even paying off a single loan can shift your approval dramatically.


2. Avoid taking on new credit before applying

Every new payment reduces your borrowing room.


3. Keep your spending stable for 90 days

Lenders review recent bank history. Stability helps.


4. Work with a mortgage broker, not just one bank

This is one of the biggest ways people leave money on the table.

Every lender calculates affordability differently.
Some are far more flexible with DTI.


If you only go to your bank, you’re only getting one version of your potential approval.


Let’s Make Your Approval Work for You

If you want to qualify for more, reduce debt strategically, or understand where you stand right now, I can help you build the right plan.


Let’s give you access to more options — not just one.

Josh Perez
GET STARTED

What You Need to Know About Mortgages and Parental Leave

By Josh Perez • July 8, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.
Suburban two-story house with a front porch, two-car garage, and a large tree-lined lawn.

Gifted Down Payment in Ontario? Don't Skip This Step

By Josh Perz • July 7, 2026
Using a gifted down payment to buy a home in Ontario? Learn exactly what lenders require — and the common mistakes that can delay or derail your approval.