Case Study · Residential / Alternative

Commission and Tips, Months Into a New Job: An Alternative Lender Financed a Burnaby Assignment Rental at 65%

Q: Can you get a mortgage on commission and tips income?

In this 2023 file an alternative lender's non-conforming stated-income program did: it annualized three months of statements and pay stubs from a spouse earning commission and tips at two nail salons, the full-time job only months old.

Q: Can you buy an assignment condo as a rental?

This couple did, in 2023: a new two-bedroom Burnaby condo bought by assignment for $840,000 with GST, to rent for about $3,000 a month, financed at about 65% of the price.

Q: Can you get a mortgage with a total debt-service ratio of 64%?

Here the ratio came to about 64%, and the alternative lender's non-conforming program still financed the file, counting about $3,700 a month of lease income, with scores of 766 and 804.

Q: Where did the down payment come from?

A $40,000 family gift and savings.

Q: What were the terms?

$546,000, about 65% of the price, on a two-year fixed term at about 6.9% in 2023, financed in both names.

A married couple bought a new two-bedroom Burnaby condo by assignment, $840,000 with GST, to rent for about $3,000 a month. One spouse owns the couple's home, in the same development, and a commercial property under a long-term lease.

Closed in 2023 · Published October 18, 2026

Residential
Alternative
Purchase
Investment property
Rental
Assignment

Purchase price: $840,000 with GST
Mortgage: $546,000
Loan-to-value: about 65%
Credit scores: 766 and 804
Rate in 2023: about 6.9%, two-year fixed

The Situation

The Challenge

The other spouse earns commission and tips at two nail salons, the full-time job only months old, and the total debt-service ratio came to about 64%.

The Solution

In 2023 we placed about $550,000 under an alternative lender's non-conforming stated-income program, about 65% of the price, on a two-year fixed term at about 6.9%. The lender annualized three months of statements and pay stubs, counted about $3,700 a month of lease income, and scores of 766 and 804 carried the file; a $40,000 family gift and savings made the down payment.

The Outcome

The couple added a new rental close to home, financed in both names.

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A rental bought on commission and tips. See what your own down payment and income support.

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Income & debts

Household gross income (annual)

Monthly liabilities

How lenders count these: car loan = actual payment; credit cards + unsecured personal LOC = 3% of balance each; student loan = 1–1.5% of balance even on a $0 plan.

Car loan payment (monthly)

Credit card + unsecured personal LOC balance

Student loan balance

Down payment

Mortgage terms

Mortgage rate (%)

Amortization

Term

Rate type

Housing carrying costs (monthly)

Property tax

Heat

Condo / strata

Suite rent

Heat: CMHC standard $100/mo. Condo: only 50% counts toward your housing ratio.

I own other propertiesCheck this if you own any other real estate (owner-occupied, vacation, or rental). Leave unchecked if none.

Max purchase price

$738,567

$638,567 mortgage + $100,000 down · limited by down payment

Total monthly debt (stress-tested)$4,550

Qualified at 6.50% (OSFI B-20 stress test).

Two ways to buy

Same income, same down payment — two strategies. Insured pricing assumed ~0.25% below conventional.

Conventional

20% down (uninsured)

$500,000

Down: $100,000 (20.0%)

Mortgage: $400,000

Rate assumed: 4.75%

Monthly payment

$2,075/mo

Principal & interest at 4.75% over 30-yr amort

Saves $19,796 in CMHC premium

− Extra interest @ +0.25% over 5-yr term: $4,750

Est. net savings: $15,046

Limited by 20% down rule — extra income capacity is unused.

Insured

Less than 20% down (CMHC-insured)

$738,567

Down: $100,000 (13.5%)

Mortgage: $638,567

Rate assumed: 4.50%

Monthly payment

$3,320/mo

Principal & interest at 4.50% over 30-yr amort

+ CMHC premium: $19,796 (financed)

Total loan w/ premium: $658,363

30-yr insured amort (first-time buyers / new builds only) adds a 0.20% premium surcharge — not included above.

Limited by income — your cash covers more than the minimum down at this price.

What this calculator does that most don't

Models liabilities the way lenders actually do: credit cards at 3% of balance, student loans at 1–1.5% of balance even on $0 payment plans
A multi-property builder that applies 100% rental add-back to income and full carrying costs to TDS — portfolio buyers get real numbers
Compares insured vs conventional side by side, netting the CMHC premium saved against the extra interest of the higher conventional rate
Discloses the exception ratios brokers actually place files at: A-lenders to 50/50, alternative lenders to 60/60 — numbers no bank calculator will print

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Contract vs stress-test payment

Lenders qualify you on the taller bar — even though you actually pay the shorter one. That's the OSFI B-20 stress test in one picture.

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Exceptions — you may qualify for more▾

• Conventional (A-lender) — strong files: as an exception, may be considered up to 50% / 50% GDS / TDS.
• Alt-lender (minimum 20% down): up to 60% / 60%, and even higher at ≤65% LTV.
• Insured deals (< 20% down): hard capped at 39% / 44% — no exceptions.

This calculator shows the standard 39/44 case. Exceptions depend on file strength and lender — get in touch to find out your true qualification.

Questions and answers

Questions about this file

Can you get a mortgage on commission and tips income?+