Projected Income Mortgage Canada – Broker Tips for 2025
For many professionals entering high-paying careers, especially physicians and medical residents, qualifying for a mortgage can be uniquely frustrating. Despite having contracts for six-figure salaries lined up, these borrowers often lack traditional documentation like pay stubs or T4s.
That’s where projected income mortgages come in — a special class of lending programs designed to help professionals qualify based on their future income.
In this guide, we’ll break down how projected income mortgage programs work in Canada, which lenders offer them, and how brokers can effectively navigate the process in 2025.
What Is a Projected Income Mortgage?
A projected income mortgage is a lending program where a borrower can qualify for a home loan based on anticipated future income rather than current documented earnings. This is common for:
Physicians finishing residency or fellowship
Dentists and veterinarians entering full-time roles
Lawyers fresh out of articling
Other professionals with confirmed job offers or contracts
These borrowers often face debt from school (like a LOC) and haven't yet received their first full paycheck. Traditional lenders typically decline these applications — unless they offer a projected income program.
Why This Matters: The Physician Example
Consider a newly minted physician in Ontario. She’s finishing fellowship in June and starts a $280,000/year position in July. She currently earns $60,000/year and holds $150,000 in student debt through a professional line of credit (PLOC).
If she applies for a mortgage through traditional channels, her debt service ratios will not work using her current pay. However, if the lender uses her contracted income starting in July, she can qualify comfortably for the mortgage she needs.
Who Offers Projected Income Mortgages in Canada?
As of 2025, these are the major lenders known to offer projected income programs in Canada:
🏦 Big 5 Banks:
Scotiabank – Through its MD Financial partnership, Scotiabank offers physician-specific lending with projected income, flexible LOC treatment, and up to 95% financing in some cases.
TD Canada Trust – TD has one of the most robust projected income policies for physicians, with minimum income thresholds based on specialty.
RBC – Offers programs for medical professionals, though with more restrictions on prepayment privileges and annual lump-sum rules.
CIBC – Participates in projected income lending, especially if you already bank with them or hold a PLOC.
National Bank – Offers targeted physician programs and flexible LOC calculations (often using 1% of balance instead of the standard 3%).
🧑💼 Monoline Lenders (via Brokers):
First National – Allows projected income up to $185,000–$225,000 depending on specialty.
MCAP / RMG Mortgages – Offer select projected income options for new professionals, often in partnership with broker networks.
Key Requirements for Projected Income Mortgages
Each lender has its own criteria, but here’s what most will want:
A signed job offer or employment contract with a start date within the next 90–120 days
Proof of education completion (e.g. medical school, articling, residency)
Registration with the appropriate provincial licensing body (e.g. CPSO for Ontario physicians)
Often, NOAs from the past two years if available
A reasonable explanation for the current lack of income or employment history
Brokers should proactively gather these documents and frame the deal clearly when submitting to a lender.
Tips for Brokers in 2025: Navigating Projected Income Deals
1. Use Lenders That Understand Professional Careers
Not every underwriter will understand why a radiologist with $300,000 in debt and no pay stub is actually a low-risk borrower. Stick with lenders who specialize in these programs.
Pro Tip: Work directly with lenders that support projected income underwriting. Avoid wasting time with underwriters who demand 3 months of pay stubs from a job that hasn’t started yet.
2. Treat the Debt Strategically
Most professionals have a PLOC (professional line of credit). Some lenders calculate 3% of the total LOC as a monthly debt payment, while others use 1% of the balance — a major difference in debt servicing ratios.
Brokers should:
Check whether the lender counts LOC limit or balance
Recommend clients temporarily pay down the LOC before application, if possible
3. Advise on Prepayment Flexibility
Many professionals want to hammer down their mortgage quickly once income stabilizes. Look for lenders that offer:
20%+ annual lump-sum prepayment
Increased payment frequency options
Double-up payment features
Clients might choose a lender with a slightly higher rate if it means better long-term flexibility. Point this out during comparisons.
4. Compare Bank vs Broker Rates Honestly
In some cases, a Big 5 bank can offer a better rate through its internal physician lending program than what a broker can get. Be transparent. Help the client compare all options — even if that means they walk into the branch instead of staying with your brokerage.
Clients appreciate honesty and will return when refinancing or buying a second property.
5. Build a Repeatable Intake Template
Because projected income mortgages are documentation-heavy, create a dedicated intake form or checklist for these deals. Include:
Future job details (employer, salary, start date)
Medical license number (or equivalent)
Educational background
Existing debts (including LOC terms)
Banking relationship history (Scotia, TD, etc.)
Having this pre-organized makes for faster lender submissions and better outcomes.
Common Mistakes to Avoid
Submitting to the wrong lender — wasting valuable time and affecting client trust
Not explaining projected income clearly in the application notes
Failing to calculate debt ratios with the correct LOC assumptions
Ignoring prepayment restrictions when comparing rates
Missing document deadlines because the start date is “too far away”
Get Professional Advice
Hello, I’m David Pipe. At WealthTrack, we can help you reach your financial goals — book a free 15-minute call with us today to find out how to get started.
Final Thoughts: Own the Niche
Projected income mortgages aren’t just a workaround — they’re a critical pathway for helping high-value clients buy homes when they technically don’t qualify. Brokers who specialize in these situations can become trusted go-to experts for physicians, dentists, lawyers, and other professionals.
With Canada's housing market continuing to tighten in 2025 and debt loads for young professionals at an all-time high, knowing how to handle these deals is more important than ever.
Looking to connect with a projected income mortgage expert? Reach out today to explore your options with the right lender — whether you're just finishing residency or starting your first associate job.
