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Articles · Mortgage

Same income, same job, smaller amount. There are specific reasons.

Four causes that cut borrowing capacity without any of your personal numbers having changed.

The CompareTaux teamReading: 4 min

The qualifying rate moved

Your eligibility is tested at a rate higher than your contract rate. When that test rate rises, the maximum loan falls mechanically, even if your income is unchanged.

A debt appeared without your noticing

A line of credit opened, a card limit raised, a purchase financed in instalments: the calculation often uses a theoretical minimum payment, even at a zero balance. Available credit counts, not just used credit.

Taxes and costs on the target property rose

The housing ratio includes municipal and school taxes, heating, and a portion of condo fees. At the same price, a property that costs more to own reduces what you can borrow.

The lender tightened its policy

Ratio caps, how variable income is weighted, or requirements on self-employed income are internal policies, subject to revision. Two lenders can give two amounts on the same file on the same day.

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