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Ghummaz Bhatti

Ghummaz Bhatti

Got a Mortgage and Student Loan? Here’s a Guide to Help You

The current COVID-19 economic crisis has reshaped how people deal with their finances. Case in point: Canadian graduates who once used college loans before financing a home are now forced to manage a student loan and home mortgage. While it may seem ideal, these may be burdens too great to bear fresh out of college.

Can an individual handle a mortgage and student loan simultaneously without the help of Ottawa mortgage services? Read more to find out!

Mortgage Structure

The amount you can borrow and accompanying interest rate are dependent on the following factors that compose a mortgage:

  • Income: Lenders and financial institutions must determine your gross income to see if you can afford a loan. This due diligence protects their investment from late payments, non-payments, and possible defaulting.
  • Debt-to-Income Ratio: Lenders will also screen this to know further if you can take on another loan when you already have one or two in place. It ensures your income can take the monthly installments without depriving you of finances for your basic needs.
  • Credit Score: Your credit rating indicates to lenders that you’re good for the cash you plan on borrowing. How punctual your payments are can affect your credit score. If you miss out on one month without paying your mortgage, that translates to higher interest, higher monthly installment, or a decline in your loan application. 

In a nutshell, you’ll get lousy loan conditions if you don’t pay on time, including some of the best mortgage terms if you fail to repay promptly every month.

These structures apply to a mortgage and student loan, so individuals can still live within their means while paying off any remaining debts. 

Next, we will see how possible it is to manage two loans simultaneously based on the same structures above.

How to Juggle Your Home and Student Loan

There are three simple steps to handling two loans at once:

  • Repay Other Unrelated Loans: It is of the utmost importance to prioritize when it comes to mortgages. There are loans you must take on, while others you can truly live without.

Case in point: credit card debt and personal loans. There is no need to partake in the plastic economy or borrow cash for bare necessities since it is well within your capability to budget correctly and pay only for what you need to survive. Indeed, dealing with mortgage services is more important than buying the latest gadget.

This also lessens your debt-to-income ratio, leaving you with more breathing room to take on a home loan.

  • Regularly Pay Your Student Loan: Once your other debts are squared away, you can apportion more of your income to paying off your student loans and handling a mortgage. 

Remember what we discussed about credit scores earlier? Early, consistent payments improve your credit rating since lenders also look at your track record as part of the screening process. If they see you’ve been paying punctually, it shows responsibility and could improve your chances of getting a home loan.

  • Apply for Pre-Approval: You can also apply for pre-approval as a buffer for taking on a mortgage with your student loan. You should keep paying off your student debt to show that you are responsible enough to handle additional loans. Pre-approvals usually offer you a suitable mortgage amount you can borrow and their interest rate.


The answer to the question, “how do you take on a student loan and mortgage at the same time?” is, “with great responsibility.” First things first: make on-time repayments for your student loan to boost your credit score and show lenders you can handle another loan. Live simply as well, so you are well within your budget to pay off both and finance your essentials.

But if you genuinely need help getting your affairs in order, don’t hesitate to reach out to Ottawa Mortgage Services. We provide mortgage agent services for first-time homebuyers, self-employed individuals, and commercial clients and assist you with refinancing, pre-approvals, and debt consolidation. Apply now!

Contact Ottawa Mortgage Services to learn more

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