Rental Worksheet Program: Qualify for More Home in Canada

Keep Your Home, Rent It Out, and Still Buy Bigger

Here’s a situation I see all the time. You own a home. You want to buy a new one. But instead of selling, you think, “Why not just rent out my current place?”

Great idea. But here’s the problem: most banks will crush your buying power when you do this.

The good news? There’s a special program that fixes this. And most people have never heard of it.

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Why Banks Make This So Hard

Let’s say your current mortgage payment is $3,000 a month. You can rent out that home for $3,000 a month too. Sounds like it evens out, right?

Not according to most banks.

Traditional lenders only count 50% of your rental income. So instead of using that full $3,000, they only count $1,500. That leaves a $1,500 “shortfall” on paper.

Now the bank treats your rental property like a $1,500 monthly debt. This tanks your debt ratios. And suddenly, you qualify for way less on your new home.

The Rental Worksheet Program Changes Everything

A handful of lenders (maybe five or six) offer something different. It’s called a rental worksheet program.

Here’s how it works:

You’re buying a new primary residence
You’re keeping your current home as a rental
The lender uses a rental worksheet instead of the standard 50% rule

With a rental worksheet, you can use up to 100% of the rental income. The lender plugs in your rent, subtracts the mortgage, property taxes, and a few other expenses.

The result? Instead of a $1,500 monthly loss, you might only show a $500 shortfall. That extra $1,000 per month translates into serious buying power.

A Real Example That Shows the Difference

I had a client come to me after getting approved at a bank. Their approval? $250,000.

In their market, that wasn’t enough. They couldn’t find anything they wanted. They were about to give up and just rent somewhere instead of buying.

Their realtor suggested they get a second opinion. Smart move.

We ran their numbers using the rental worksheet program. Their new approval? $450,000.

That’s an extra $200,000 in buying power. Same client. Same income. Same rental property. Just a different program.

Now they could actually find a home in the area they wanted.

Why Banks Don’t Offer This

Here’s the thing: banks don’t have this program. Period.

I used to work at a bank. When I’d hear about brokers getting clients approved for way more, I’d think, “They must be doing something shady.”

Turns out, they were just using programs the banks didn’t have access to.

This rental worksheet program is only available through certain mortgage brokers who work with specific lenders. The big banks simply don’t offer it.

Who Should Use This Program?

This program works great if you:

Own your current home and want to keep it
Plan to rent out your current home
Are buying a new primary residence (not an investment property)
Want to maximize your approval amount

We’re seeing more people use this strategy lately. The market has cooled. Homes take longer to sell. So more people are saying, “Forget selling. Let’s just rent it out and buy something new.”

And since you’re buying a primary residence, you only need 5% down.

The Bottom Line

If you’re planning to rent out your current home and buy a new one, don’t just walk into a bank. You’ll likely leave money on the table.

The rental worksheet program can give you tens of thousands (sometimes hundreds of thousands) more in buying power.

Same income. Same rental property. Just a smarter program.

Talk to a mortgage broker who knows about this program before you start house hunting. It could be the difference between settling for something and getting the home you actually want.

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Frequently Asked Questions

What is the rental worksheet program?

It's a special mortgage program that lets lenders use up to 100% of your rental income when qualifying you for a new home. This gives you more buying power compared to banks that only count 50% of rent.

Why do banks only use 50% of rental income?

Banks use conservative calculations to account for vacancies and expenses. They count only half your rent, which creates a shortfall on paper and reduces how much you can borrow.

Can I use this program for investment properties?

No, this program is specifically for buying a new primary residence while renting out your current home. It won't work for pure investment property purchases.

How much more can I qualify for with this program?

It varies by situation, but some clients qualify for $100,000 to $200,000 more than they would at a traditional bank. The exact amount depends on your rental income and expenses.

Do all mortgage brokers have access to this program?

No, only brokers who work with specific lenders offering this program can access it. There are roughly five or six lenders that offer rental worksheet calculations.

How much down payment do I need?

Since you're buying a primary residence, you only need 5% down payment, just like any other home purchase for yourself.

What expenses get subtracted in the rental worksheet?

The lender subtracts your mortgage payment, property taxes, and a few other operating expenses from the rental income to calculate your net position.

Should I get a second opinion if I've already been approved by a bank?

Absolutely. If you're keeping your current home as a rental, a mortgage broker using the rental worksheet program may get you approved for significantly more than your bank offered.

Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.

Written by

LendCity

Published

January 5, 2026