Professionals and high earners: strong income, good credit — how to get the best rate and terms

Who is this page for?

People with strong income and good credit, in any field. For example:

Health care: family physicians, specialists, residents and fellows, dentists and dental specialists, pharmacists, optometrists, veterinarians, physiotherapists, chiropractors, naturopathic doctors, nurse practitioners, registered nurses, psychologists.
Law and finance: lawyers, notaries public (BC notaries), accountants (CPAs), actuaries, financial and investment advisors, people working in banking and insurance.
Engineering and tech: engineers, architects, software developers and engineers, data scientists, product managers, tech employees (including those paid partly in stock or RSUs).
Management and public service: executives and senior managers, senior staff in government and large organizations, professors, police officers, firefighters.
Others: pilots, salespeople on large bonuses or commission, certified trades with heavy overtime (electricians, plumbers, heavy-duty mechanics and the like), doctors, dentists, lawyers and accountants who own their clinic or firm and pay themselves a salary — and other professionals and high earners.

Couples whose combined income is high count too. If you own your clinic or firm, there is a section on that below: a T4 salary you pay yourself belongs on this page; dividends or self-employment income belong on the Self-employed page.

Lowest rate: go to your own bank, or a mortgage broker?

You can ask both. What matters is getting several lenders to quote on the same terms and comparing them side by side.

A bank's posted rate is usually not the rate you end up with, and your own bank can only offer its own price. A broker works with several lenders — banks, credit unions, lenders that specialize in mortgages — so I compare their prices and terms for your situation first, then send the application to the one that fits. Compare like with like: the same term, the same amortization and the same tier (insured or not), or you are not comparing the same thing.

Beyond the rate, compare the terms: how much you can prepay each year, how the penalty works if you sell or switch lenders mid-term, whether you can take the mortgage with you to a new home, and how the lender treats you at renewal. A slightly lower rate with much worse terms is not always cheaper in the end.

Bigger down payment, pricier home — why is the rate higher?

Because lenders price a mortgage first by whether it is insured, not by the size of the down payment. At $1.5 million or more, mortgage insurance isn't available and the minimum down payment is 20%, so your quote comes from the uninsured tier — often higher than what a buyer with less down and an insured mortgage gets.

For the same person, the down payment, the amortization and which side of $1.5 million the price falls on can put the mortgage in different tiers: insured, insurable in bulk by the lender, or uninsurable. Put several uninsured quotes side by side, then ask how much down it takes to get a lower price, and you'll know whether a bigger down payment is worth it. There is a full guide on this: Buying at $1.5M+ without mortgage insurance: why a bigger down payment can mean a higher rate, and how to compare.

How long a term, fixed or variable?

The lowest-rate option isn't always the cheapest — factor in whether you might sell, refinance or make a large lump-sum payment during the term.

If you break the mortgage, the penalty on a fixed rate is usually the higher of three months' interest or the interest rate differential (IRD); on a variable rate it is usually three months' interest — your contract is what counts. High earners often move up, relocate or get a large bonus they want to put on the mortgage within a few years, so price those moves in first. Two guides go deeper: 1-, 3- or 5-year term: is the lowest rate really the best deal? and Fixed vs variable: how to choose.

Bonus, commission, stock (RSUs), a new job: how do lenders count them?

Generally they can be used, but there has to be a record. For variable income like bonuses and commission, most lenders want two years of history and usually use the two-year average — if last year was well below the average, they may use last year instead; for stock they look at the vesting and payout record; for a new job they look at the contract and the probation period.

Salary, bonuses, commission and vested stock generally all show up on your T4, which makes them easier to prove than self-employment income: an employer letter, recent pay stubs, two years of T4s and your Notices of Assessment (NOA) from the CRA. How much stock a lender will count, and over how many years, varies a lot — it is one of the things to compare between lenders.

If you just changed jobs or got promoted: moving to a new employer in the same field and the same kind of role, it depends on the lender's probation policy — some wait until you are past probation before using the new salary, some don't. Moving from a permanent role to a contract, some lenders treat contract income as variable income and want two years of history, and they also look at how long the contract runs and whether it renews. One-time signing bonuses and relocation allowances are usually not counted.

You own your clinic or firm and pay yourself a T4 salary: how is it counted?

It depends on the lender. Some count it as salary, the same as working at a hospital or someone else's firm; others see that the company paying you is yours and still want to look at its books.

Because you set your own salary, most lenders ask for a few more things: the company's tax returns (T2) and financial statements, how much of the company you own, and how long it has been operating. A salary you pay yourself shows clearly on your T4, so most of this page applies; if you take dividends or report self-employment income, see the Self-employed page.

When you change how you pay yourself, and when you buy, matters: applying before or after the change can make a big difference to what you can borrow — see Making partner, switching to dividends, or opening your own practice: buy now or wait?. Ask your accountant what works best for tax; I'll work out what terms you can get on the mortgage side.

Residents and new job contracts: can you qualify on future income?

With some lenders, yes. Some lenders run programs for physicians and similar professionals, and residents, fellows and newly practising doctors may be able to qualify on a contract or on projected income; some programs also take dentists, veterinarians, optometrists and chiropractors.

The conditions differ by lender and change over time: which professions qualify, whether you need to be licensed already, how soon the contract has to start, and the maximum amount are all set by each lender's rules at the time. What you usually need: your licence or proof of residency, the employment contract or offer letter, recent pay stubs, and where the down payment is coming from. A professional student line of credit you still owe on counts as debt — see the questions below.

Switching lenders mid-term or at renewal: penalties, and when it pays

Switching at maturity generally carries no penalty. Before maturity, the penalty on a fixed rate is usually the higher of three months' interest or the IRD; on a variable rate it is usually three months' interest.

Whether it pays comes down to adding up the penalty, the new rate and the cost of switching: the interest you save has to be more than the penalty and the costs. Near maturity your lender sends a renewal statement (federally regulated lenders must send it at least 21 days before the term ends); the rate in it isn't a final offer, so compare first. Since November 21, 2024, moving a stand-alone mortgage (not one combined with a HELOC) at maturity from one federally regulated lender to another, without increasing the amount or extending the amortization, no longer requires qualifying at the stress-test rate.

See Switching lenders for a lower rate: how the penalty works and when it pays and the Renewal page.

Three things you can do now

First, pull together your last two years of T4s, your Notices of Assessment (NOA) and recent pay stubs; if you have bonuses, commission or stock, add an employer letter and your vesting record; if you own your clinic or firm, add the company's last two years of tax returns and financial statements.

Second, list every line of credit and credit card in your name with its limit and balance, including any professional student line of credit. Third, before you sign the rate your own bank offers, let me put a few lenders' quotes side by side for you once.

Common questions