Pre-approval with a heavy car loan in Alberta.

A $800/month car payment can reduce maximum mortgage by $100,000+ depending on rate and amortization.

Alberta adds its own layer. Calgary and Edmonton run on different employment-cycle assumptions. Oil-sector commission and bonus income is heavily averaged. That matters here because underwriters are already scrutinizing the income side of a pre-approval with a heavy car loan file — a property or program complication local to Alberta can push a marginal file over the edge.

No land transfer tax. Land Titles registration fee plus mortgage registration fee — a few hundred dollars typical.

Programs to check eligibility for in Alberta:

• FHSA
• Home Buyers' Plan (RRSP withdrawal)

• Loan agreement showing remaining balance and term
• Most recent statement
• Vehicle ownership and insurance details

Alberta nuance: Bonus and commission income require 2 years of T4s; many Alberta files are killed by overstating recent strong years.

• Variable income from energy-sector roles is averaged over 24 months minimum.
• Acreage and rural files trigger MLI restrictions over a hectare.
• Condo board documents are commonly thin — request the full reserve study.

Underwriter view of this scenario: Underwriters use the full monthly payment in TDS — there is no offset for asset value. Paying down the principal does not reduce the payment; refinancing the loan to a longer term can.

• Pay out the car loan entirely if possible before applying
• Refinance the loan to a longer term if payout isn't feasible
• Wait until under 10 payments remaining (some lenders exclude near-term loans)

• Recent car loan with high payment relative to income.
• Multiple vehicle loans in the household.