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Case Study · Residential / Prime

Two Salaries Cut for a Time and a 649 Score: A Major Bank Financed a First Condo at 80% in West Vancouver

A married couple, permanent residents with no children, were buying their first home: a two-bedroom condo in West Vancouver with covered parking, valued at about $790,000.

Closed in 2024 · Published October 18, 2026

  • Residential
  • Prime lender
  • Purchase
  • First-time buyer
  • West Vancouver
Value
about $790,000
Mortgage
about $630,000
Loan-to-value
80% of the value
Credit scores
649 and 733
Rate in 2024
5.29%, three-year fixed, 30-year amortization

The Situation

A married couple, permanent residents with no children, were buying their first home: a two-bedroom condo in West Vancouver with covered parking, valued at about $790,000.

The Challenge

Both work in visual effects at the same studio, and since October 2023 both salaries had been cut for a time after a pandemic-related drop in the company's profits, to about $110,000 and about $60,000, with pay of about $150,000 and about $67,000 expected back in April 2024. Both credit files were clean but thin, one with a 649 score.

The Solution

In 2024 we placed about $630,000 with a major Canadian bank, 80% of the value, on a three-year fixed term at 5.29% with a 30-year amortization. On the reduced salaries, confirmed by employment letters and pay stubs, the ratios came to about 35%, and scores of 649 and 733 carried the file.

The Outcome

The couple bought their first home with 20% down from savings and investments of about $240,000, which also covered closing costs.

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Affordability Calculator

A first condo bought on two reduced salaries. See what your own down payment and income 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 you qualify for a mortgage after a temporary pay cut?+

Yes, on the reduced pay. In this 2024 file both salaries had been cut for a time since October 2023, to about $110,000 and about $60,000, and a major Canadian bank qualified the couple on those reduced salaries, confirmed by employment letters and pay stubs.

Did the pay expected back count?+

The file was worked on the reduced pay. In this 2024 file pay of about $150,000 and about $67,000 was expected back in April 2024, and on the reduced salaries the ratios came to about 35%.

Can a 649 score get a major bank mortgage?+

In this file it did. In this 2024 file both credit files were clean but thin, one with a 649 score, and scores of 649 and 733 carried the file.

Can permanent residents buy at 80%?+

This couple did. In this 2024 file we placed about $630,000 for a couple of permanent residents with a major Canadian bank, 80% of the value, on a three-year fixed term at 5.29% with a 30-year amortization.

Where did the down payment come from?+

Savings and investments. In this 2024 file the couple put 20% down from savings and investments of about $240,000, which also covered closing costs.

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