The biggest myth about getting approved.
Most people assume a loan decision comes down to one number: their monthly salary. It is the most visible factor, so it gets all the attention. But it is only one piece of a much larger picture.
The salary myth
"If I earn enough, I'll get approved." Income is just one of several things lenders weigh — and on its own, it rarely decides the outcome.
A personalised loan offer takes into account your income, your existing debt, how long you have been employed, your credit score, and more. Understanding the full set is what lets you predict where you stand.
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Shorts · LendelaWhat lenders actually assess.
Eligibility criteria vary from one institution to the next. But most banks and licensed providers weigh a common set of factors. Here is what actually goes into the decision.
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The 5 things lenders check
Income
Your gross monthly income sets your eligibility and the rate band you fall into. Each product has a minimum.
TDSR
Total monthly debt obligations cannot exceed 55% of your gross monthly income, across all lenders.
Employment
Most prefer at least three months in your role. Self-employed applicants may need tax returns.
Credit score
A good score lifts both your approval odds and the rate you are offered across all institutions.
Documents
ID, income proof, and supporting statements. Clean, complete documents speed everything up.
Residency
Citizen, PR, or pass holder. Criteria and loan limits shift significantly depending on your status.
How much can you actually borrow?
Once the factors above line up, they shape your borrowing ceiling.
The general range
2× – 6×
of your monthly income, up to $200,000 total. Depending on your salary, credit record, and existing debt.
The TDSR ceiling sits on top of this. Even if a lender would offer more, your total monthly debt obligations across everything you owe cannot exceed 55% of your gross monthly income. That regulation applies regardless of which institution you approach.
If your profile is harder to place.
Not every profile fits every lender. Lower income, a thin credit file, self-employment, or non-citizen status can all make some doors harder to open. That does not mean you are out of options. It means the match matters more.
Not all loan providers approve every profile, but some specialise in the ones others turn away. Lendela connects you to those that accept your profile, and assesses you once, so you are not damaging your score by knocking on doors that were never going to open.
