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

Deposit vs. Down Payment: Key Differences for Homebuyers

By Josh Perez • February 18, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.
Cozy armchair next to a small wooden table with a mug and an open book. Sunlight streams through a window.

Is a 5% Down Payment a Mistake? Here’s the Unpopular Truth.

By Josh Perez • February 15, 2026
Discover why a 5% down payment isn’t always irresponsible. Learn when a low down payment is a smart financial move for Ontario homebuyers and when it’s a risk.