How Hard Is It to Get a Mortgage in Ontario in 2027?

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 9 min read — The real 2027 rules for getting a mortgage in Ontario, and the income you would need for typical GTA homes.

This guide is for anyone in Toronto or the GTA who wants to buy in 2027 and is wondering whether they can actually get approved. You will get the real qualifying rules as of November 2026, the income you would need for typical GTA homes, and the specific things that make approval harder or easier.

How hard is it to get a mortgage in Ontario in 2027?

It is hard, but the difficulty is mostly about numbers you can check in advance, not luck. Lenders in Ontario apply the same national rules. You must show you can carry the mortgage at a higher test rate, keep your housing and debt costs under set shares of your income, have an acceptable credit history, and bring a minimum down payment.

Two things changed the picture going into 2027. Prices eased: TRREB MLS data via REALM for January to October 2026 shows detached medians down year over year in most GTA cities, such as Brampton down 8.9% and Markham down 6.5%, and condo apartment medians down more. But borrowing got dearer: the Bank of Canada raised its policy rate to 2.50% on 28 October 2026, and five-year bond yields, which drive fixed rates, rose through September and October. Lower prices help; higher rates take part of that help back.

What is the mortgage stress test in 2027?

Every buyer borrowing from a federally regulated lender, such as a bank, must qualify at the greater of:

• 5.25%, or
• Your contract rate plus 2 percentage points.

This applies to insured mortgages (under 20% down), under a federal rule in place since June 2021, and to uninsured mortgages under OSFI’s guideline. OSFI reviewed the rule in January 2026 and left it unchanged. With fixed rates in the mid-4% range in late 2026, most buyers are tested above 6%. For example, a 4.44% contract rate means you qualify at 6.44%.

You do not pay the test rate. It is a safety margin. But it decides how much you can borrow. My stress test guide shows the maths in detail.

How much income do you need for a mortgage in the GTA?

Lenders use two ratios. CMHC caps them for insured mortgages, and FCAC uses the same guide limits:

• Gross debt service (GDS): mortgage payment, property tax, heating and half of any condo fee, at most 39% of gross income.
• Total debt service (TDS): all of the above plus every other debt payment, at most 44% of gross income.

Here is what that means for two typical 2026 GTA prices, with the minimum down payment and an illustrative 4.44% rate, tested at 6.44%.

Source: my calculations; medians from TRREB MLS data via REALM, January–October 2026; GDS/TDS limits and qualifying rate from CMHC and FCAC. Tax, heat and condo fee figures are assumptions for illustration, not quotes.

Notice how debts change the answer. With no other debts, the GDS ratio is the limit. Add a $1,000-a-month car loan and student loan, and the TDS ratio takes over, pushing the income needed up by $8,000 to $11,000 in these examples.

What credit score do you need for a mortgage in Ontario?

For an insured mortgage through CMHC, at least one borrower or guarantor needs a credit score of 600 or higher. CMHC may consider other ways to show credit for people with no history, such as newcomers. Lenders can, and often do, set their own higher bar, and the best rates usually go to stronger files.

FCAC notes that with a weak score, a lender may refuse the mortgage or ask for a co-signer. Before you apply, get your credit report, fix errors, and bring card balances down. My guide to the credit score lenders look for has the details.

How much down payment do you need in Ontario in 2027?

The federal minimum as of November 2026 is:

• 5% of the price up to $500,000,
• plus 10% of the part between $500,000 and $1.5 million,
• or 20% of the full price at $1.5 million or more, where insurance is not available.

FCAC adds that the minimum normally has to come from your own funds, and that self-employed buyers or those with poor credit may need more. Below 20% down, you pay a default insurance premium of 2.80% to 4.00% of the loan for most buyers, plus 8% Ontario sales tax on it in cash. My guide to the minimum down payment in Ontario gives the exact amount for every price.

Is it harder to get a mortgage if you are self-employed or new to Canada?

Self-employed

Usually, yes, because income is harder to prove. FCAC says lenders may ask self-employed borrowers for two years of Canada Revenue Agency notices of assessment, and that they may need a larger down payment. Lenders often look at income after write-offs, which can be much lower than what the business really earns. My guide to getting a mortgage when self-employed in Ontario covers how to prepare.

Newcomers and non-permanent residents

CMHC insures homeowner loans for Canadian citizens, permanent residents, and non-permanent residents legally allowed to work in Canada, and may use alternative credit sources when there is no Canadian credit history. Each lender sets its own extra conditions, so ask early.

What are OSFI’s loan-to-income limits, and do they affect you?

Since each bank’s 2025 fiscal year, OSFI has limited how much of a lender’s new uninsured mortgage lending can go to loans above 4.5 times the borrower’s income. The loan amount counts all debts secured by the home, including second mortgages and HELOCs. This is a portfolio limit, not a cap on each borrower. OSFI says plainly that it is not a limit on each individual loan.

In practice, it can make lenders more selective with high-ratio uninsured files. A Mississauga example shows why. The 2026 detached median was $1,225,000. With 20% down, the loan is $980,000. At an illustrative 4.69% rate, the qualifying rate is 6.69%, and with $800 a month of assumed tax and heat, a buyer needs about $217,000 of income on a 30-year amortization. That is about 4.5 times income, right at the threshold. The limit does not apply to insured mortgages.

What makes a mortgage approval harder in 2027?

• Too much other debt. Car loans and credit lines eat into the 44% TDS limit fast.
• Unprovable income. Cash income, new contract work or recent job changes can stall an approval.
• A low appraisal. If the lender values the home below your price, you must cover the gap in cash. In a falling market, that risk is real.
• Condo issues. High condo fees count in GDS, and some lenders look closely at a building’s finances.
• Relying on an old pre-approval. A pre-approval is not a final approval; rates and rules can change before you buy.

How can you make it easier to get a mortgage in 2027?

• Pay down debts first. Every $100 a month of debt you clear lowers the income you need under the TDS limit.
• Use a 30-year amortization if you qualify. First-time buyers and buyers of new builds can get 30 years on an insured mortgage, which lowers the qualifying payment.
• Add a co-borrower or guarantor. A second income can change the answer, but it comes with real legal obligations.
• Look at more affordable GTA markets. REALM data shows 2026 detached medians of $730,000 in Oshawa and $736,750 in Hamilton, versus $1,225,000 in Mississauga.
• Hold a rate early. FCAC says lenders may hold a pre-approved rate for 60 to 130 days.

What to do next

1. Pull your credit report and fix any errors.
2. Add up your monthly debts and run your GDS and TDS at the qualifying rate, not today’s rate.
3. Gather two years of income documents, and notices of assessment if you are self-employed.
4. Get a written pre-approval with a rate hold, and keep a financing condition in your offer where possible.
5. Speak with a licensed mortgage professional before you shop. This article is general information, not personal financial advice.

Frequently asked questions

Sources

• OSFI: Minimum qualifying rate for uninsured mortgages
• OSFI: Loan-to-income limits for uninsured mortgage portfolios
• Department of Finance Canada: Statement on the qualifying rate for insured mortgages (May 2021)
• CMHC: Purchase (homeowner mortgage loan insurance eligibility)
• FCAC: Preparing to get a mortgage
• FCAC: Getting preapproved for a mortgage
• Canadian Mortgage Trends: OSFI leaves stress test in place, reaffirms LTI limits (Jan 2026)
• Bank of Canada: Rate announcement, 28 October 2026

Related reading

• The Bank of Canada Raised Rates: What It Means for GTA Buyers, Sellers and Owners
• Variable-Rate Mortgage After the Hike: How Much Your Payment Changes
• Should I Lock In My Variable Mortgage Before 2027?
• Mortgage Renewal in 2027 After the Rate Hike: Your Options in Ontario