How a $22,000 Pension Helped Qualify a $1 Million Home Purchase: Using CPP and OAS for Mortgage Eligibility

by Dion Beg

Pensions CAN Make All the Difference

For many Canadians, mortgage qualification remains the biggest hurdle between them and their next property. Even with the right down payment, stricter income-use rules and stress test guidelines mean that buyers, and even seasoned investors, often fall just short of the numbers they need.

One overlooked solution? Pension income.

Most buyers are surprised to learn that CPP and OAS income is perfectly eligible for mortgage qualification. And while it’s usually lower than what parents or relatives earned in their working years, it can still make a meaningful difference in an application.

Take Helen and Justin, for example. They set their sights on a $1 million home. They could afford the payments, but Justin was self-employed, and not all of his income was usable under traditional bank guidelines. The result: they fell short on qualifying.

When we explored options, Justin mentioned his mom might be willing to co-sign, although she only had pension income of about $22,000. To their surprise, that modest pension income was enough to boost their borrowing power by $80,000 and secure the purchase.

For investors and families alike, the lesson is clear: qualification isn’t always about higher paycheques; it’s about strategy.

By considering parents’ or even grandparents’ pensions as part of the qualifying mix, you may open doors to properties that otherwise feel out of reach.