What could break your pre-approval?
A pre-approval assumes nothing changes. For a $120,000 household offering $550,000 (maximum $605,100), a $650-a-month car loan cuts the maximum by $76,000, and an appraisal 5% under the offer needs about $24,500 more cash: 5% of the offer at 89% loan-to-value.
Figures as of 2026-11-02.What could break your pre-approval?
Each change on its own, and what it does to the most you could borrow for, against the price you've offered.
- New car loan, $650/month
Maximum becomes $529,100 (-$76,000). Lenders re-check credit before closing; new debt counts in TDS.
- $8,000 new credit card balance
Maximum becomes $589,000 (-$16,100). Lenders count a minimum payment of about 3% of the balance a month (our assumption; lenders vary).
- Rate 0.75 points higher (hold expired)
Maximum becomes $572,500 (-$32,600). Your held rate protects you only until the hold ends; after that the qualifying rate rises too.
- Household income down 15%
Maximum becomes $524,000 (-$81,100). A job change, lost overtime or one partner going part-time before closing.
- Appraisal 5% below the price
The lender lends against the lower of price and appraised value: 5% × $550,000 × 89% loan-to-value = about $24,500 more cash.
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.
2 of 4 changes would put $550,000 out of reach; a 5% low appraisal needs about $24,500 more cash.
Show the numbers
| Maximum price | Your offer | |
|---|---|---|
| Today | $605K | $550K |
| car | $529K | $550K |
| card | $589K | $550K |
| rate | $573K | $550K |
| income | $524K | $550K |
Assumptions & sources
Assumptions
- Each change is tested on its own against the stress test and down-payment rules; several together compound.
- Credit card payments counted at 3% of the balance a month (our assumption; lenders vary).
- Lenders usually re-check credit and employment before funding; anything that changes your file can change the approval.
Sources
- Financial Consumer Agency of Canada — Getting a mortgage pre-approval (rate lock 60 to 130 days) (effective October 15, 2025). Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
- CMHC — Calculating GDS / TDS. Checked .
How does this calculator work?
Each change is applied on its own and the maximum price is recomputed under the stress test and down-payment rules, then compared with your offer. If the offer is already above today's maximum, the tool says by how much before testing anything. The appraisal line is costed on your offer: the lender lends the same share of the lower appraised value, so the gap is cash. See what can break a pre-approval.
| Income / down payment | $120,000 / $60,000 |
|---|---|
| Offer | $550,000 |
| Maximum today | $605,10030 years, first-time buyer |
| New car loan, $650/month | $529,100offer out of reach |
| $8,000 new credit card balance | $589,000offer still fits |
| Rate 0.75 points higher (hold expired) | $572,500offer still fits |
| Household income down 15% | $524,000offer out of reach |
| 5% low appraisal: extra cash | $24,5005% × $550,000 × 89% loan-to-value |
Open this example in the calculator →Computed November 2, 2026.
Frequently asked questions
Will a new credit card affect my mortgage approval?
It can: a new balance adds a payment to your TDS ratio, and new credit can lower your score before the lender's final check.
Primary sources
- CIBC — Mortgage pre-approval (up to 120 days from the certificate date, fixed rates). Checked .
- Financial Consumer Agency of Canada — Getting a mortgage pre-approval (rate lock 60 to 130 days) (effective October 15, 2025). Checked .
- CMHC — Calculating GDS / TDS. Checked .