Pensions CAN Make All the Difference

When it comes to buying a home, many clients approach us with a purchase price in mind. But once we run the numbers, they sometimes discover they fall just short of qualifying.

In these situations, our job is to explore every possible solution — from structuring income differently, to adjusting amortization, to looking at co-signers.

And almost every time, when the idea of involving parents comes up, we hear something like:

"Dion, my parents are on pension income, so I don't think they'll be able to help us."

Here’s the surprising truth: pension income is perfectly eligible for mortgage qualifying.

Even though it’s usually lower than what your parents earned during their working years, it can still be enough to make a meaningful difference.

A Real Client Example

Helen and Justin wanted to purchase a $1 million home. They could comfortably handle the payments — but because Justin was self-employed, we couldn’t use all of his income on the mortgage application. With a major bank, that meant they fell short.

When I asked about parents helping, Justin said they’d be open to it, but that they only earned pension income of about $22,000 a year.

The great news? That pension income was enough to add $80,000 to their borrowing power, which bumped their approval up to the point where they could purchase the home they wanted.

Why This Matters

Sometimes getting approved for a mortgage isn’t about bigger salaries or larger down payments — it’s about knowing what questions to ask, and where to find opportunities that others might overlook.

Pension income, while modest, can be the difference between “almost” and “approved.”

Ready to Explore Your Options?

If you’re close but not quite there, there may be a way forward.

If you’d like to chat — or if you’d like help talking with your family about working together to achieve your real estate goals — book a call with me here.