Mortgage Blog

How to Qualify for a Higher Mortgage Amount – Tips from Yelena Markus, Mortgage Broker in Montreal

June 9, 2025 | Posted by: Yelena Markus

Many homebuyers in Montreal begin their journey with a mortgage pre-approval, only to find out the amount offered doesn’t quite match their target price range. With rising property prices and strict stress test rules in Canada, even buyers with solid incomes can hit a ceiling on what they qualify for.

If you’re in this situation, don’t worry—there are strategic ways to boost your mortgage approval. As a seasoned mortgage broker in Montreal, Yelena Markus has helped countless clients improve their borrowing power by guiding them through simple yet impactful adjustments.

Key Takeaways

• Paying off debt and boosting your credit score can raise your mortgage eligibility.

• Increasing your down payment or amortization period gives you more purchasing flexibility.

• Adding a co-borrower or co-signer can increase the income used for mortgage qualification.

What Affects Your Mortgage Approval?

To know how to increase your mortgage, it’s important to understand what lenders look at. Here are the most critical factors that determine your mortgage amount:

1. Gross Income: Higher income means a higher ability to borrow. Lenders calculate your debt-carrying capacity based on verifiable income.

2. Debt Ratios (GDS/TDS): Your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios show how much of your income goes toward housing and total debt. Most lenders cap these at 39% GDS and 44% TDS.

3. Credit Score: A strong credit score (ideally above 680) increases lender trust and helps you access better rates and higher mortgage amounts.

4. Down Payment: A larger down payment reduces the amount you need to borrow and improves your affordability profile.

5. Amortization Period: A longer amortization (like 30 years instead of 25) reduces monthly payments, which may help you qualify for a larger mortgage.

6. Qualifying Interest Rate: Mortgage applications must pass the federal stress test, calculated using the higher of your rate + 2% or 5.25%. Lower rates make qualifying easier.

Ways to Increase Your Mortgage Amount

1. Reduce Your Existing Debt

Lenders want to see room in your monthly budget. If you’re carrying credit card balances or loans, paying them down can free up income and increase your mortgage capacity. For example, eliminating a $300/month car payment could boost your borrowing power significantly.

2. Improve Your Credit Score

Your credit profile is one of the strongest signals of reliability. To improve it:

• Keep credit card balances below 30% of your limit.

• Always pay bills on time.

• Avoid applying for new credit shortly before applying for a mortgage.

Even modest improvements in your credit can lead to better interest rates and approval terms.

3. Increase Your Household Income

Your mortgage amount is directly tied to income. If your current earnings are limiting you:

• Add a co-borrower (like a spouse or parent).

• Declare all stable secondary income (freelance, part-time, or bonuses).

• Maintain consistent job history in the same field—especially important for self-employed borrowers.

Yelena Markus can guide you through which lenders accept alternate forms of income and how best to document them.

4. Increase Your Down Payment

The more you put down, the less you need to borrow, and the more flexibility you have. If you can contribute at least 20%, you’ll avoid mortgage insurance and may qualify for extended amortization, increasing your maximum approved loan.

You can increase your down payment by:

• Using savings from a TFSA or FHSA.

• Accessing up to $60,000 from RRSPs through the Home Buyers’ Plan (HBP).

• Receiving a gifted down payment from family (requires a signed letter and proof of source of funds).

5. Opt for a Longer Amortization

If you have at least a 20% down payment, you can extend your mortgage to 30 years. This lowers your monthly payments, which improves your GDS/TDS ratios and allows you to qualify for a higher mortgage amount.

First-time buyers purchasing new construction may also qualify for 30-year amortization even with less than 20% down.

6. Shop for a Lower Rate

Even a small difference in your interest rate can increase your borrowing limit. A lower rate makes the stress test easier to pass, which boosts how much you can borrow. However, don’t forget to review any restrictions that may come with a low-rate product (e.g. prepayment limits, high penalties).

As your broker, Yelena Markus compares mortgage options from dozens of lenders to find the best rate without sacrificing flexibility.

7. Consider Alternative Lenders

If traditional banks won’t approve the mortgage you need, you may benefit from working with a B-lender or private lender. These institutions offer more flexibility for:

• Self-employed borrowers

• Credit-challenged clients

• High-net-worth individuals with low reported income

Alternative lending may come with higher rates, but it can be a temporary bridge. Yelena Markus can help you build a long-term plan to move into prime lending once your profile improves.

Gifted Down Payments & Co-Borrowers

Family support can go a long way in boosting your mortgage qualification.

Gifted Down Payments: A monetary gift from immediate family (with proper documentation) can strengthen your application, reduce your loan-to-value ratio, and possibly eliminate the need for mortgage insurance.

Co-Borrowers: Adding a co-signer or guarantor—someone with strong credit and income—can increase your borrowing power. The difference:

• Co-signer is on the mortgage and the property title.

• Guarantor is only on the mortgage (not the title) and easier to remove at renewal without refinancing.

Yelena Markus will help you assess which structure makes the most sense for your goals and exit strategy.

Final Thoughts from Yelena Markus

Just because a lender gave you a certain number doesn’t mean you’re stuck with it. With the right strategy, it’s often possible to increase your mortgage pre-approval and get into a home you truly want.

If you’re feeling stuck or overwhelmed, reach out to Yelena Markus, Mortgage Broker in Montreal, to discuss your options. Whether you’re buying your first home, upsizing, or navigating a tricky financial situation, Yelena’s hands-on, personalized approach ensures you’re supported at every step.

Let’s unlock your true mortgage potential—together.

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