Trouble qualifying for a mortgage

[Account Closed]

Hey crew, question for anyone, if my fiancé and I have about 250k in debt from rental properties will we have a very tough time getting approved for say a $500k primary residence? Even at a 200k household income I’m being told by family we will never get approved for a 500k home with that debt from rentals even if they’re cash flowing nicely. Any info helps! 

I live in fort mcmurray Alberta fyi

Thanks :)

[Theresa Harris]

Best to talk to your bank as they will have all of your info.  With the rules in Canada, you will have to be approved at a higher interest rate than what you will actually pay. I think my banker was saying 8% is what they were having to stress test people at.  It really depends on your credit rating, other debt, etc.  If you have $250K in mortgages already, you are basically asking them to approve you for a total of $750K (adding in the $500K for the new home).  It shouldn't be a problem.  Also is the $500K for the house or the amount of the mortgage?  If the former, your mortgage would be for less.