Can I qualify for a mortgage if I have debt?
Direct answer: Possibly. Lenders generally consider income, required monthly debt payments, credit, down payment and the proposed property together. The size and required payment of each debt can affect borrowing room.
Key learning points
- A debt balance and its monthly payment are different pieces of information.
- Paying debt down may help, but using all savings could leave too little for closing or emergencies.
- Ask a mortgage professional to compare scenarios before moving money.
This short video is a starting point, not an assessment of your personal circumstances. Mortgage approval depends on the lender, insurer where applicable, your documented finances and the property.
A simple way to prepare your debt picture
For each debt, write down the balance, required monthly payment and interest rate. Bring the list, your savings amount and income documents to a mortgage conversation. A balance tells you how much you owe; the payment tells you what must leave your budget each month.
For example, two people could each owe $10,000 but have different required monthly payments. The balances match, while the pressure on their monthly budgets differs. This example illustrates the distinction; it does not estimate an approval amount.
Questions to bring to a mortgage conversation
- How are my current monthly debt payments being counted?
- What would change if I reduced a particular balance or payment?
- How much cash would remain for the purchase and unexpected expenses?
For background, read the Financial Consumer Agency of Canada's guide to preparing for a mortgage.
Keep learning
Written summary and preparation notes updated October 18, 2026. These notes support the topic and are not a verbatim video transcript.