Case Study · Residential / Prime

Scores Over 860 on Thin Credit Files and a Rate Hold: A Major Bank Financed a First Townhouse at 80% in Port Coquitlam

Q: Do high scores make up for a thin credit file?

They can help. In this 2023 file scores of 869 and 865 on thin credit files, with student loans staying on, still carried ratios of about 29% and 32% at a major Canadian bank.

Q: What rate did the mortgage have to qualify at?

7.81%. In this 2023 file the mortgage had a 5.81% three-year fixed rate and had to qualify at 7.81%.

Q: How did the rate hold help?

It secured the rate. In this 2023 file a rate hold already in place with the bank locked in 5.81% on the three-year fixed term.

Q: What income carried the file?

Two salaries. In this 2023 file one spouse earned $180,000 since January 2021 and the other $80,000 since July 2019, both as environment artists.

Q: Can TFSAs and RRSPs fund a down payment?

Yes. In this 2023 file the couple put 20% down from savings, TFSAs and RRSPs totalling about $330,000, which also covered the closing costs.

A married couple with no children, both Canadian citizens, were buying their first home: a three-bedroom, three-bathroom townhouse in Port Coquitlam with two parking spaces and a pool on site, valued at about $1 million.

Closed in 2023 · Published October 18, 2026

Residential
Prime lender
Purchase
First-time buyer
Rate hold
Port Coquitlam

Value: about $1 million
Mortgage: about $820,000
Loan-to-value: 80% of the value
Qualifying rate: 7.81% in 2023
Rate in 2023: 5.81%, three-year fixed, 30-year amortization

The Situation

The Challenge

Both worked as environment artists, one on $180,000 since January 2021, the other on $80,000 since July 2019. Their scores were 869 and 865, but both credit files were thin, student loans were staying on, and the mortgage had to qualify at 7.81% in 2023.

The Solution

In 2023 we placed about $820,000 with a major Canadian bank, 80% of the value, on a three-year fixed term at 5.81% with a 30-year amortization, qualified at 7.81%. A rate hold already in place with the bank secured the rate, and the ratios came to about 29% and 32%.

The Outcome

The couple bought their first home with 20% down from savings, TFSAs and RRSPs totalling about $330,000, which also covered the closing costs.

Run the numbers

Affordability Calculator

A first townhouse qualified at a stress-test rate on two incomes. See what your own incomes and down payment 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

Do high scores make up for a thin credit file?+