1⃣ Your income and your employment history

2⃣ Your debts

3⃣ The size of your down payment

4⃣ Your credit history

5⃣ The property’s value

6⃣ Your proof of identity

Your Income plays a major role on the mortgage approval. You don’t need to be wealthy to qualify for a mortgage, however, the lender needs to know how much of your total income will be spent on housing to decide your affordability. Lenders are more likely to lend money to those who have steady employment. Any part time income, commission, self employee income, business income can be considered as an income. Self employed/ commission/ business income requires 2 year history. There are some exceptions, talk to our team if you have questions.

Lender considers how much of your total income will be spent on debt owing. They calculate your Growth Debt Service and (GDS) and Total Debt Service (TDS) ratio to determine what you can comfortability afford.

The Debts are including any car loan (Finance or lease), Line of credit, Credit card, Mortgage amount, Student loan, Card charge, Child Support that you may pay monthly payments to plus any loan you’re signed as a guarantor or co-signer.

The amount of your down payment could affect your mortgage approval.

The credit history is one of the important factors of qualifying for mortgage. Lender will determine mortgage approval base on good credit score and credit report.

Credit score is a number that signals your financial health at a specific time. It also gives information about your financial past, and how consistently you pay off your bills and debts. Lender like to see at least 2 items reporting to your credit bureau, to determine your mortgage approvability. If you don’t have it, they look at any bill payments or rent payments to see your debt responsibility.

Credit score number is between 400 to 900. Also, Credit score of over 680 consider as a good credit.

Your Credit report is a detailed summary of your credit history, employment history and personal financial Information Including your phone number, address etc. You can get your credit report through one of Canada’s credit-reporting agencies, Equifax Canada and TransUnion Canada. by creating online account to their portal, you can easy order the report and receive it by mail. If you see any error contact them and ask them to fix it.

Start to build your credit score as soon as possible and then use it responsibly, mange your credit well, pay off your bills on time or at least pay the minimum payment. Don’t use your credit if you can not pay it back on time. Don’t spend over limit in your credit cards, keep your balance up to 30% of your limit, keep at least 2 active credit cards and don’t apply for more credit cards or loans than you can comfortably manage.

Lenders want to ensure that the home you want to buy is worth the price you plan to pay. They will request a professional appraisal to appraise the home value. It is very important to have it for your protection as well.

If you stop Making mortgage payments, the lender has the right to sell your home to pay off the loan (a process called ‘foreclosure’). The home’s value is the lender’s best assurance that they can recover the money with selling the home in the event of stop making mortgage payments for more then 3 months.

Do you want to sell your current home? If so,

Do you have equity on your current home which you want to use for down payment of your next home?

Do you want to first sell your home and then buy the new one or vice-versa?

Do you owe debt on your current home? if so, do you want to pay it off or transfer your mortgage to the next home?

Do you want to rent it and move to new home?

Or do you want to buy it as an investment property?

How much is the down payment and what is the source of down payment?

What is the market value and market rent of your current home?

There is event more questions involved and we need to clarify them. The best ideas for buying your next home are contact us to review all the scenario, clarify all the details and get pre-approval.

Normally the mortgage contract has the length of time which your mortgage contract is in effect. after this time, you need to renew your mortgage whit same lender or transfer it to another lender. The length of time of Mortgage is term of 1,2,3,4,5,10 years. Most of lender send renewal letter 3 or 4 months prior to end of the term which calls maturity date of the contract.

Sometimes, homeowners think it makes sense to stay with same lender as it is easier than shopping around for new mortgage and transferring it, but that only makes sense if they have a better rate with existing lender OR if they wont be able to re-qualify with a new lender, in which case it doesn’t make sense for them to transfer the mortgage.

We are here to make process simple and faster for you. You can start renewal process approximatively 120 days before than your Mortgage maturity date.

One of the best ideas for investment is buying property which help you to grow your asset and add positive cash flow to your income.

We are experts on reviewing your situation, outline flexible solutions and find you perfect mortgage fit to your solution.

✅ Vacation properties OR Second Homes

✅ Mortgages for Bad Credit

✅ Cashback Mortgages

✅ Early Renewals

✅ Home Equity Line of Credit

✅ Mortgages for self-employed

✅Mortgage for Business Owner