With average home prices still hovering near the $900,000–$1,000,000 range, traditional lenders require extremely high income levels just to pass the federal mortgage stress test. For many hardworking families and self-employed borrowers, that income threshold feels completely disconnected from reality.
Let’s break down:
✅ How much income banks say you need
✅ What monthly payments actually look like
✅ Why most buyers are getting declined
✅ And how Lendworth approves mortgages differently
The Average Home Price in Toronto
Toronto remains one of Canada’s most expensive real estate markets. With the average home price around $935,000, buyers typically need:
A 20% down payment (~$187,000)
Strong credit
Low existing debt
High documented income
Even with 20% down, borrowers must qualify under the federal mortgage stress test, meaning they must prove they can afford payments at a rate much higher than their contract rate.
What Are Monthly Mortgage Payments in Toronto?
On a typical purchase:
Purchase price: $935,000
20% down payment: $187,000
Mortgage amount: ~$748,000
25-year amortization
4–5% interest range
Estimated monthly payments fall between:
💰 $3,600 – $4,400 per month
And that’s before:
Property taxes
Condo fees (if applicable)
Utilities
Insurance
How Much Income Do Banks Require?
Here’s where it gets tough.
Under current stress test rules, most traditional lenders require:
📌 $175,000 – $195,000+ in household income
To qualify for an average Toronto home with 20% down.
Meanwhile:
Toronto’s median household income is under $100,000
Many self-employed individuals show reduced taxable income
Business owners write off expenses
Commission-based earners fluctuate year to year
The result?
Strong borrowers with equity and assets are getting declined because of income formulas.
Why Buyers Are Getting Declined in 2026
Here’s what we’re seeing daily:
❌ Self-employed income not accepted
❌ Debt ratios too high on paper
❌ Condo fees pushing ratios over limits
❌ Rental income discounted
❌ Corporate income not counted properly
❌ Recent job change or probation
Banks focus heavily on income verification and strict ratios.
But what if you have strong equity?
The Lendworth Difference: We Are Equity-Based Lenders
At Lendworth, we do things differently.
We are private, equity-based mortgage lenders serving Toronto, Vaughan, and across Ontario.
🔹 We do NOT focus on income qualification.
🔹 We focus on property equity.
🔹 We focus on loan-to-value (LTV).
🔹 We focus on exit strategy.
If you have equity in your property, we look at:
✔ Property value
✔ Location
✔ Marketability
✔ Current mortgage balances
✔ Overall deal strength
Not just your T4.
Who We Help
We regularly approve mortgages for:
Self-employed borrowers
Business owners
Commission-based professionals
Borrowers recently declined by banks
Investors
Buyers with complex income structures
Clients facing renewal challenges
If you have 20–40% equity, income becomes far less important.
Condo Buyers: A Hidden Affordability Trap
Many buyers assume condos are easier to qualify for.
But here’s the catch:
Banks add 50% of condo maintenance fees into your debt ratios.
That can push an otherwise qualified buyer into decline territory.
At Lendworth?
We assess the full picture — not just a formula.
First-Time Buyers: Is Toronto Still Possible?
Government programs exist, including:
30-year amortizations for insured buyers
RRSP Home Buyers’ Plan
First Home Savings Account
Land transfer tax rebates
But even with these tools, income qualification remains the main barrier.
That’s why many buyers turn to equity-based bridge solutions or private lending strategies to secure properties and refinance later.
The Real Question Isn’t “How Much Income Do You Make?”
It’s:
How much equity do you have?
Traditional banks lend based on income.
We lend based on equity.
If your income doesn’t fit inside a bank’s rigid box, that doesn’t mean you can’t get a mortgage.
It just means you need a lender who looks at the asset.
Make Toronto Real Estate Work For You
Buying in Toronto isn’t easy — but it’s possible with the right strategy.
Whether you’re:
Lendworth provides fast, equity-based mortgage solutions across Ontario.
Your Equity Deserves More™
If the bank said no, call us.
We don’t look at income.
We look at equity.