Rental Portfolio Mortgage — DCR vs Rental Offset (Canada)

Grow a rental portfolio — and qualify on the income it produces

Lenders count rental income in one of two ways — and the method decides whether your properties help you or hold you back. The

often drags you down instead. Here's how each works — and a calculator to see which qualifies you for more.

of these to qualify you — not both. Which one they use (and which lender you take) can swing what you're approved for by a lot.

Each property is tested on whether its rent covers its own costs. Clear the minimum and it's

— the lender lifts that property out of your ratios completely, so it neither helps nor hurts. Strong rentals stop dragging you, which is why a portfolio scales further on DCR.

pass → excluded from your ratios · fail → treated as a drag

The lender credits a share of the rent (often just 50%) against the property's full carrying cost. Because only half the rent counts against 100% of the costs, even a profitable property can show a

that drags your ratios — and it compounds with every property you own.

surplus → adds to income · shortfall → adds to your debts

, and the DCR minimum (commonly ~1.20), the offset percentage, and how condo fees are treated all vary by program. Matching your portfolio to the lender and method that qualify you for the most is exactly what a RateStreet advisor does. Residential rental underwriting covers

Enter your rentals once, then flip between the two methods to see which qualifies you for more. Illustrative planning estimates only — not an offer, an approval, or any specific lender's policy.

How the two methods compare for this purchase

The right lender — and the right method — can be the difference between a "no" and your next door. Tell us about your properties and a licensed RateStreet advisor will map the strongest path forward.

This page and calculator are provided by RateStreet for

. They are not an offer of credit, a pre-approval, or a statement of any specific lender's policy. How rental income is counted — the DCR minimum, offset percentage, condo-fee treatment, eligible property types, documentation, and the number of properties allowed — varies by lender and changes without notice. Estimates shown are illustrative, based on the inputs you enter and generalized industry ranges, and your actual qualification depends on a full application, credit review, and the lender's current guidelines. Talk to a licensed RateStreet advisor for personalized, program-specific guidance.

Growing a rental portfolio? Learn the two ways lenders count rental income — the Debt Coverage Ratio (DCR) method and the rental-offset method — and see which qualifies you for more with RateStreet's free calculator. DCR is usually the stronger route for a portfolio.

A signed lease (or an appraiser's economic-rent letter) confirms the gross rent the lender will credit.

Your Statement of Real Estate Rentals and Notices of Assessment show the portfolio's real history — often required once you hold several rentals.

Each lender runs its own DCR or offset worksheet per property. We prepare it so the numbers land the way your file needs.