How Many Mortgages Can You Have in Canada?

Jul 9

Canada has no set limit on the number of mortgages one person can hold at any given time. Renée Huse, Senior Mortgage Professional and Owner of Spire Mortgage Team, is currently paying 15 mortgages! But you will likely need to diversify where your loans are coming from. Generally speaking, traditional lenders will not finance more than 4 properties.

While it’s true that there are no restrictions on how many mortgages you can have in Canada, that does not mean anyone can obtain all the mortgages they want. For a person to be approved for multiple mortgages, they must qualify.

What factors impact your ability to qualify for multiple mortgages?

Stress Test
The Stress Test in Canada ensures that borrowers can afford their mortgage payments, even when there are significant fluctuations in the interest rate market. When applying for a home loan, borrowers must be able to qualify at either a rate of 5.25% (the Mortgage Qualifying Rate or MQR) or the contract rate plus 2%, whichever is higher.
Debt
Your TDS (Total Debt Service) and GDS (Gross Debt Service) ratios will affect your mortgage approval. Lenders need to have confidence that you’ll be able to afford regular payments for multiple mortgages.
Gross Debt Service is the percentage of your monthly income that goes toward your housing costs. GDS is represented as a percentage. It’s your total income versus your total housing expenses. Generally, most mortgage lenders want your GDS ratio to be 39% or less.
The calculation for GDS is: Heating Costs + Property Taxes + (Condo fees) +Principal + Interest / Gross Income
Total Debt Service is the percentage of your monthly income that goes toward your debt and your housing expenses. Your TDS ratio is basically your GDS ratio plus any debt you’re paying off on a monthly basis. TDS is also shown as a percentage. It’s your total income versus your total housing expenses and debt. Mortgage lenders want your TDS ratio to be 44% or less.
The calculation for TDS is: Utilities + Property Taxes + Principal + Interest + Debt Payments / Gross Income
Credit Score
When you are applying for multiple mortgages, lenders will closely examine your credit history and score. Maintaining a healthy credit score is essential in order to secure approval for multiple mortgages. A good credit score is typically 680 or higher. Understanding The 5 C’s of Credit can help you to improve your score and gain insight into how credit can impact your mortgage application.
Down Payment
Having a larger down payment significantly improves your chances of approval—especially in a multiple mortgage scenario. When applying for a mortgage for a second property, down payment requirements may vary based on your intended use of the property and whether it will be owner-occupied or tenant-occupied. In Alberta, the amount required for a down payment on owner-occupied properties varies depending on how much the home costs:
- $500,000 or less: 5% of the purchase price
- $500,000 to $999,999: 5% of the first $500,000 of the purchase price and 10% for the portion of the purchase price above $500,000
- $1 million or more: 20% of the purchase price
Tenanted properties always require a minimum down payment of 20% of the purchase price.
Property Value vs. Equity
Lenders will often assess how much equity you own when approving multiple mortgages. For example: If you already own a couple of properties, what portion of those is equity vs. loans? The more equity you have in real estate, the greater your chances of approval for additional financing.

What are the risks of having multiple mortgages?

Taking on more loans and financial obligations = More risk. Bottom line. It’s important for borrowers who are interested in real estate investing to be introspective and consider if they are ready and able to take on the financial burden of managing multiple mortgages. Real estate investing can be great—but it’s not for everyone. Speak with your accountant or mortgage broker to outline a plan that fits with your goals and budget. Done properly, investing in homes can be a path to building generational wealth.

What are the benefits of having multiple mortgages?

Some benefits that come along with having multiple mortgages include tax write-offs for investment or rented properties, leveraging borrowed money to grow your real estate portfolio, and participating in market appreciation across multiple homes. Benefits are not guaranteed, so it’s important to have a plan in place and to be in frequent communication with financial, real estate and mortgage specialists.

How to apply for multiple mortgages in Canada

1. Talk to a Mortgage Broker

If you're unsure about the mortgage process—especially when it comes to obtaining multiple mortgages—or want to find the best deal, consider talking to a mortgage broker. A mortgage broker is a licensed professional who can help you find and apply for a mortgage that meets your needs. Here are some reasons why you should consider working with a mortgage broker:

Access to multiple lenders: A mortgage broker has access to multiple lenders, including banks, credit unions, and private lenders. This means they can shop around for the best mortgage rates and terms on your behalf.
Expert advice: A mortgage broker can provide you with expert advice on the mortgage process, including how to improve your credit score, how much you can afford to borrow, and what type of mortgage is best for your situation.
Save time and effort: Applying for a mortgage can be time-consuming and stressful. A mortgage broker can handle the paperwork and negotiations on your behalf, saving you time and effort.
No cost to you: In Alberta, mortgage brokers are paid by the lender, so there's no cost to you for their services.

2. Prepare your Paperwork

When you apply for a mortgage, the lender will want to know about your income, debts, and assets. It is important to have a clear understanding of your financial situation before you apply.

You can use our mortgage calculator to get an estimate of how much you can afford to borrow based on your income and expenses.

To assess your financial situation and prepare for a mortgage application, you should gather the following documents: