Why You Might Be Getting Pre-Approved for Less Than You Expect

Josh Perez • October 31, 2025

If you’ve been surprised by a lower-than-expected mortgage pre-approval amount, you’re not alone—and there’s usually one main reason: debt.


It’s not just about how much you make; it’s about how much of that income is already spoken for.

"We've seen people making six figures get approved for less than someone making $70,000 a year—because the higher earner had two car loans, a line of credit, and a student loan, while the lower earner had zero debt and a clean file." — Josh Perez

When lenders review your application, they don’t care much about your lifestyle—they care about ratios. If your debt servicing ratios (the percentage of your income that goes toward debt payments) are too high, it doesn’t matter how big your paycheque is—you’ll hit a cap.



Before you start house hunting, take a close look at your liabilities:

  • Car loans
  • Credit cards
  • Lines of credit
  • Student loans


Even small adjustments—like paying down a balance or restructuring existing debt—can make a big difference in how much you qualify for.


Here’s the part most people don’t realize: not all banks calculate your income and debts the same way. That means your approval could vary significantly depending on which lender reviews your application.


That’s why it’s so important to work with an experienced mortgage broker who represents you, not the bank. A broker can compare multiple lenders, spot the differences in their calculations, and help you find the approval strategy that gives you the most buying power.

Not all banks and lenders calculate your income and your debts the exact same way.” — Josh Perez

This is where strategy matters. The right mortgage professional can identify which lenders view your situation most favourably—and help you increase your buying power without changing your income.


Want to know which lender will give you the best approval?


 Book a quick discovery call with Josh to review your debt structure and uncover your full borrowing potential.

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Get Unbiased Advice: Work with an Independent Mortgage Pro

By Josh Perez • December 24, 2025
Why Work With an Independent Mortgage Professional? If you’re in the market for a mortgage, here’s the most important thing to know: Working with an independent mortgage professional can save you money and provide better options than dealing directly with a single bank. If that’s all you read—great! But if you’d like to understand why that statement is true, keep reading. The Best Mortgage Isn’t Just About the Lowest Rate It’s easy to fall for slick marketing that promotes ultra-low mortgage rates. But the lowest rate doesn’t always mean the lowest cost . The best mortgage is the one that costs you the least amount of money over time —not just the one with the flashiest headline rate. Things like: Prepayment penalties Portability Flexibility to refinance Amortization structure Fixed vs. variable terms …can all affect the true cost of your mortgage. An independent mortgage professional looks beyond the rate. They’ll help you find a product that fits your unique financial situation , long-term goals, and lifestyle—so you’re not hit with expensive surprises down the road. Save Time (and Your Sanity) Applying for a mortgage can be complicated. Every lender has different rules, documents, and policies—and trying to navigate them all on your own can be time-consuming and frustrating. When you work with an independent mortgage professional: You fill out one application They shop that application across multiple lenders You get expert advice tailored to your needs This means less paperwork , less stress , and more confidence in your options. Get Unbiased Advice That Puts You First Bank specialists work for the bank. Their job is to sell you that bank’s mortgage products—whether or not it’s the best deal for you. Independent mortgage professionals work for you. They’re provincially licensed, and their job is to help you: Compare multiple lenders Understand the fine print Make informed, long-term financial decisions And the best part? Their services are typically free to you . Mortgage professionals are paid a standardized fee by the lender when a mortgage is placed—so you get expert guidance without any out-of-pocket cost. Access More Mortgage Options When you go to your bank, you’re limited to that bank’s mortgage products. When you go to an independent mortgage professional, you get access to: Major banks Credit unions Monoline lenders (who only offer mortgages) Alternative and private lenders (if needed) That’s far more choice , and a much better chance of finding a mortgage that truly fits your needs and goals. The Bottom Line If you want to: Save money over the life of your mortgage Save time by avoiding unnecessary back-and-forth Access more lenders and products Get honest, client-first advice …then working with an independent mortgage professional is one of the smartest decisions you can make. Let’s Make a Plan That Works for You If you're ready to talk about mortgage financing—or just want to explore your options—I'm here to help. Let's connect and put together a strategy that makes sense for your goals and your future. Reach out anytime. I’d be happy to help.

Why High Income Doesn’t Automatically Mean a Bigger Mortgage

By 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.