Can you qualify for a mortgage?
Talking to a mortgage agent or your bank should be the first step when you are thinking of buying a home. Every day we come across situations where people can get a mortgage while they thought they would not qualify. And every day we come across those where people cannot get as much money as they thought they would get. The last situation can be especially frustrating. Home buyers have certain expectations. They spend time searching for a home. And when they find the perfect home they don’t expect that they cannot borrow the required funds.
Always talk to a bank or mortgage broker and get pre-approved, so you know the available price range of a home for you.
Always talk to a bank or mortgage broker and get pre-approved
Here are questions that the mortgage lender may ask:
- What is your yearly income? What is your total gross family income? You will have to show proof of a number of things, such as your pay stubs from your employer.
- How long have you worked at your current job? Lenders require a minimum time at the same employer.
- Do you currently own a home or rent?
- If you own, what is the current value of your home?
- How much equity do you have in your home?
- What outstanding loans do you have?
- Do you own other assets; car, investments, savings?
- What are your monthly liabilities, including regular bills and payments?
- What is your credit rating? This credit rating will be ‘pulled’ by the lender.
If you are self employed or a newcomer to Canada
If you are self-employed you still can qualify for a mortgage. In this case, in general, lenders will ask for the last 3 years of your Notices of Assessment from Revue Canada.
If you are new to Canada, you still may qualify for a mortgage. Of course, having a job will be the biggest requirement. Most newcomers do not have a good credit rating built yet, so this group needs to show accountability differently. Some lenders are willing to look at your history with your landlord, your phone and cable bills. Also a large down payment will help to secure a mortgage. We work a lot with two mortgage brokers who help immigrants get a mortgage. Contact us at 403 630 5190 for more information.
Are you new to Canada? Read our post with helpful links about buying a home in Canada as a newcomer. Know that coffee is on us, while we tell you all about the process of buying. No obligations!