Factors That Influence Your Mortgage Qualification in Quebec

Getting a mortgage is a crucial step in the home-buying process.
In Quebec, as elsewhere in Canada, several criteria affect your likelihood of approval. But lenders’ rules (banks, caisses populaires, and alternative lenders) and local market trends make certain strategies especially important.
In this article, we cover the main elements that can impact your qualification and how to improve your chances of approval in today’s context.

1) Your credit file and score

Your credit score is one of the main indicators used by Quebec lenders to assess your solvency.
Institutional lenders (banks, caisses populaires) generally require a score of at least 680 to access the best rates.

Reduce your credit utilization: stay under 30% of your available limits

Credit utilization—the percentage of your credit limit you are using—is one of the most important factors in your score calculation in Quebec, according to Equifax and TransUnion.

What does that mean?
If your card limit is $5,000 and your balance is $1,500, your utilization rate is 30%.

Why is 30% the recommended ceiling?
Lenders see a ratio above 30% as a higher reliance on credit, which can signal risk.

Even if you pay your statement in full each month, a high balance at the moment the lender or bureau reports it can temporarily lower your score.

Top scores are often achieved when utilization is between 10% and 20% of the available limit.

How to keep a low ratio:

• Spread your spending across multiple cards instead of maxing out one.

• Raise your limits (if possible) to reduce the percentage used, but avoid spending more.

• Make multiple payments during the month, especially before your issuer reports to Equifax/TransUnion.

💡 Tip for future buyers:
If you plan to apply for a mortgage, start optimizing your utilization 3–6 months in advance. A higher score can give you access to better rates and loan terms.

2) Your income and employment stability

Lenders want to see stable, predictable income to repay the mortgage.
In Quebec, two years of employment history in the same field is often an advantage, especially with traditional lenders.

Key points:

• Job stability: a recent job change isn’t necessarily a deal-breaker, but a steady history builds confidence.

• Proof of income: prepare pay stubs, T4/T4A slips, and Notices of Assessment from Revenu Québec / the Canada Revenue Agency.

• Self-employed: expect to provide two full years of tax returns and sometimes work with a more flexible lender.

3) Your debt ratios (GDS/TDS)

In Quebec—as elsewhere in Canada—lenders calculate two key ratios:

• Gross Debt Service (GDS): generally must be ≤ 39% for traditional lenders.

• Total Debt Service (TDS): generally must be ≤ 44%.

To improve your chances:

• Pay down existing debts (credit cards, lines of credit, car loans).

• Increase income (overtime, rental income, second job).

4) Your down payment

The minimum down payment in Quebec depends on the property type and intended use:

• 5% for a primary residence under $500,000.

• 10% for the portion of the price over $500,000.

• 20% to avoid CMHC (or Sagen/Canada Guaranty) mortgage insurance.

Benefits of a larger down payment:

• Access to better rates.

• Lower total borrowing cost (less interest and lower/ no mortgage insurance).

5) Current trends in the Quebec market

In 2025, Quebec’s real estate market remains active, with conditions varying by region:

• Interest rates: still higher than before 2022, but showing slight stabilization in early 2025.

• Heightened competition in certain areas: Montreal, Laval, South Shore, and North Shore still see multiple-offer situations.

• Shortage of affordable properties: for younger buyers, condos and plexes (duplex/triplex) often remain more accessible than single-family homes.

Conclusion: prepare with an expert

Qualifying for a mortgage in Quebec can seem complex, but by understanding key factors—credit score, job stability, debt ratios, down payment, and market trends—you can prepare more effectively.
Take time to assess your situation, build a plan to optimize your financial profile, and stay informed about rate movements and market conditions.

💡 A Quebec mortgage broker can compare offers from multiple lenders (banks, caisses, and alternative lenders) and find the solution best suited to your needs.

Ready to take the next step? Contact a mortgage broker today to discuss your project and maximize your chances of approval.  Not sure who to contact? Ask your real estate agent. Real estate agents work closely with mortgage brokers and can direct you to the right person.