You graduated with your BScN, landed a full-time position at a hospital, and you're ready to buy a home. There's just one problem: the $35,000 in student loans that's been following you since graduation. Here's the good news — student debt doesn't disqualify you from getting a mortgage. But it does reduce how much you can borrow, and the impact is larger than most nurses expect. How Student Debt Affects Your Mortgage Numbers Lenders use your Total Debt Service (TDS) ratio to determine your maximum mortgage. Your TDS includes your housing costs plus all other debt payments — and student loans are front and centre. Impact on Max Mortgage $20,000 $227 -$45,000 to -$50,000 $35,000 $397 -$79,000 to -$88,000 $50,000 $568 -$113,000 to -$125,000 $75,000 (NP/MN) $851 -$170,000 to -$188,000 That's significant. A nurse earning $95,000 with $35,000 in student debt qualifies for roughly $80,000 less mortgage than an identical nurse with no student debt. Complete mortgage guide for nurses Strategy 1: Extend Your Student Loan Amortization The simplest way to reduce the impact is to extend your repayment period from 10 years to 15 years before you apply for a mortgage. This reduces your monthly payment without changing the balance. Example: $35,000 loan at 6.5% 10-year term: $397/month 15-year term: $305/month Savings: $92/month = ~$18,000 more mortgage capacity Contact your lender or the National Student Loan Service Centre to request an extension. Do this at least 2-3 months before your mortgage application so the new payment shows on your credit bureau. Strategy 2: REPAP (Repayment Assistance Plan) If you qualify for REPAP, your monthly payment is reduced to an affordable level based on your income and family size. Some A-lenders will use the REPAP payment instead of the calculated payment, which can significantly improve your ratios. Important caveat: Not all lenders accept REPAP payments. Your broker needs to know which ones do and submit accordingly. Strategy 3: Targeted Paydown Before Applying If you have savings earmarked for your down payment, it might actually make more sense to pay down student debt first. The math: Paying off $10,000 of student debt frees up ~$110/month in your TDS ratio, which translates to roughly $22,000 in additional mortgage capacity. If that extra $22,000 lets you buy the home you actually want instead of settling, it's worth reducing your down payment. Strategy 4: Consolidate Into a Lower-Rate Product If you have both federal and provincial student loans, consolidating into a single lower-rate product (personal LOC at prime + 1%, for example) can reduce your monthly payment. However, you lose the tax deduction on student loan interest, so run the numbers carefully. When does consolidating debt into your mortgage make sense? NP and Graduate-Level Nurses: Special Considerations Nurse Practitioners who completed master's or doctoral programs often carry $60,000-$80,000+ in student debt. The good news is that NP salaries ($105,000-$130,000+) are high enough to absorb this debt in qualification — but you need a lender that properly accounts for your higher income. If you recently completed your NP and don't yet have 2 T4s at the higher salary, bring your employment contract showing the NP salary. Most A-lenders will qualify you at the contracted rate. Let's Run Your Numbers We'll show you exactly how your student debt affects your mortgage — and which strategies will maximize your approval amount. Get Your Free Pre-Approval → Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357
