Why high-income landlords hit a ceiling
Zahrany Zawahir · 2 min read
High-income landlords are often surprised to find that their earning power alone doesn't guarantee the mortgage approval they expect. Banks don't assess income in isolation; they evaluate affordability using a strict debt-service coverage ratio (DSCR), typically capped at 150%. Once existing liabilities approach this threshold, the eligible loan amount becomes limited regardless of how strong the overall profile appears.
In a recent landlord case, the client was receiving solid rental income from multiple owned units. Two factors were affecting eligibility: a high total credit card limit exposure, and properties rented on short-term arrangements, income most banks do not consider for mortgage assessment.
This is where planning makes the difference. In some cases, reducing certain exposures before applying can significantly improve eligibility. In others, structuring and evidencing additional stable income sources can help achieve the desired loan amount.
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