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Case Study · Residential / Prime

One Salary, a Legal Suite and Ratios of About 47%: A Major Bank Financed a First House at 80% in Mission

A single first-time buyer was purchasing a new detached house in Mission with seven bedrooms and four bathrooms, including a legal three-bedroom suite, priced at about $1.2 million plus GST.

Closed in 2024 · Published October 18, 2026

  • Residential
  • Prime lender
  • Purchase
  • First-time buyer
  • Single income
  • Mission
Purchase price
about $1.2 million plus GST
Mortgage
about $1 million
Loan-to-value
80% of the price including GST
Income used
one salary of about $180,000, plus suite rent of at least $2,000 a month
Rate in 2024
6.00% (prime less 1.20%), five-year variable, 30-year amortization

The Situation

A single first-time buyer was purchasing a new detached house in Mission with seven bedrooms and four bathrooms, including a legal three-bedroom suite, priced at about $1.2 million plus GST.

The Challenge

Everything rested on one salary of about $180,000 as a senior development engineer, in the same job since May 2021. Even counting the suite, expected to rent for at least $2,000 a month, the debt-service ratios came to about 47%, above the usual 44% limit.

The Solution

In 2024 we placed about $1 million with a major Canadian bank, 80% of the price including GST, on a five-year variable term at 6.00% (prime less 1.20%) with a 30-year amortization. The bank took ratios of about 47% on an 856 score with every account paid as agreed, with the suite's rent to be confirmed by a market-rent appraisal.

The Outcome

The client bought a first home with 20% down, about $260,000, from their own savings and investments, which also covered the closing costs.

Run the numbers

Affordability Calculator

A first house carried on one salary and a legal suite's rent. See what your own income and down payment support.

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Income & debts
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.

Mortgage terms
Amortization
Term
Rate type
Housing carrying costs (monthly)

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

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 a lender go above the usual 44% ratio limit?+

Sometimes, when the rest of the file is strong. In this 2024 file a major Canadian bank took debt-service ratios of about 47% on an 856 score with every account paid as agreed.

Does a legal suite's rent help you qualify?+

Yes. In this 2024 file the suite was expected to rent for at least $2,000 a month and was counted, with the rent to be confirmed by a market-rent appraisal.

Can a single first-time buyer buy a house on one salary?+

This client did. In this 2024 file one salary of about $180,000 as a senior development engineer, in the same job since May 2021, carried the purchase together with the suite.

What rate did the file get?+

6.00% on a five-year variable term. In this 2024 file that was prime less 1.20%, with a 30-year amortization on about $1 million.

How much was put down?+

20% of the price. In this 2024 file the client put 20% down, about $260,000, from their own savings and investments, which also covered the closing costs.

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