Can You Get a Mortgage With High Debt in BC? (2026 Guide)
- Vrndavan Christa
- 7 hours ago
- 2 min read
Can You Get a Mortgage With High Debt in BC? (2026 Guide)
Getting a mortgage with high debt in British Columbia can feel overwhelming — but it’s more common than you think. Many borrowers assume they’ll be automatically declined, but that’s not always the case.
In this guide, we’ll break down how lenders look at debt and what your options are if you’re carrying a high debt load.
What is Debt-to-Income Ratio (DTI)?
Your debt-to-income ratio (DTI) measures how much of your monthly income goes toward debt payments.
Lenders in Canada typically look at:
Gross Debt Service (GDS) → housing costs
Total Debt Service (TDS) → housing + all other debts
If your ratios are too high, traditional banks may decline your application.
How Much Debt is Too Much?
Most A-lenders (major banks) prefer:
GDS under 39%
TDS under 44%
If you exceed these limits, approval becomes more difficult — but not impossible.
Can You Still Get Approved?
Yes — even with high debt, you still have options.
Many borrowers in BC get approved through alternative lending solutions, especially if:
You have strong income
Your property has good value
You can provide a larger down payment
Best Mortgage Options for High Debt
1. B-Lenders
B-lenders are more flexible than traditional banks and often approve clients with higher debt ratios.
2. Private Lenders
Private lenders focus more on your property and equity rather than your debt levels.
3. Mortgage Brokers
A broker can connect you with lenders that specialize in high-debt situations and structure your deal properly.
Tips to Improve Your Approval Chances
Pay down high-interest debts first
Avoid taking on new loans before applying
Increase your down payment if possible
Work with a mortgage expert
Get Help With Your Mortgage
If you're struggling with high debt, you’re not alone — and you still have options.
At Blue Butterfly Mortgages, we help clients across BC secure approvals even with complex financial situations.
👉 Learn more here:https://www.bluebutterflymortgages.ca/debts
Or contact us today to explore your options.
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