Things To Do To Ruin Your Chances of Getting a Mortgage

Things To Do To Ruin Your Chances of Getting a Mortgage

A mortgage is a really big deal. When applying for a mortgage, a lender will look at all aspects of your credit history and employment to see if you are able to handle a large debt such as a house.

However, there are some things that will definitely ruin your chances of getting a mortgage if you are not fully aware, and sometimes it may be something that seems so simple but will make a huge impact on your home buying ability.

The following is list of things that can affect your chances of getting a mortgage:

Not having enough saved for a down payment: Always plan ahead. Make sure that you have put enough money aside so that you can make a sufficient down payment. Even if you…

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The Mortgage Process

The Mortgage Process

Purchasing a home is a lengthy process, which includes find your dream home. Needless to say, a house is a big deal, and you want to make sure you choose wisely. Below are few tips to get you on your way to home ownership.

Pre-qualify for a mortgage: It’s a good idea to understand what type of house you will be able to afford according to your income and your debt. Pre-qualifying for a mortgage will give you an advantage in the event you find a home that you love.

Find a property: Become knowledgeable about how homes cost in certain areas that you are interested in. It will give you a better understanding of what is out there and what you can afford.

Paperwork: Once you find a property, a real estate agent will draw up a…

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CMHC announcement - Effective July 1, 2020

Here is the latest CMHC announcement - Effective July 1, 2020 

1. Debt to income ratio will now be 35% GDSR & 42% TDSR instead of 39% GDSR & 44% TDSR
2. Minimum credit score of 680 for at least one borrower
3. Elimination of borrowed down payment program.

If you have been thinking about purchasing a property, this will affect how much you will qualify for a home. 

https://www.cmhc-schl.gc.ca/en/media-newsroom/news-releases/2020/cmhc-reviews-underwriting-criteria?utm_source=twitter&utm_medium=cmhc_ca_organic&utm_campaign=cor-org&utm_term=b7a40b24-7069-4e72-821e-2d8bf03a5279&fbclid=IwAR2VovO2kEQanaeHUoxpFyGsewQ4UwCMXa36PU1GsWzhJJX7ghl03aJrEsw

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Covid 19, Mortgage Deferrals and the Credit Score Gamble

This post is time sensitive, with implications for your mortgage, cashflow, and credit for April - Sept 2020, all due to Covid-19.

 I am not a medical professional.  I know NOTHING about health.  There are hundreds of news stories out there about Covid-19.  Many more about government actions.  About social distancing.  This is NOT one of those posts.  It should also be noted, that as with everything Covid, the situation is fluid and changing.

 The federal government announced the Covid-19 Mortgage Payment Deferral Program.  Essentially freeing up extra cash flow for mortgage holders NOW, in the middle of the outbreak.  The best page directly from the government describing the program…

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Mortgage Changes

The Government Has Made Changes

In the government's never ending attempt to influence the market, control risks to the larger economy (bubbles in Vancouver / Toronto), spur / restrict the economy, encourage home ownership, fund budgets (BC speculator tax), and otherwise create headaches for people wanting to buy, this is a list of the changes wrought to the mortgage industry in the last decade:

Confusing? This is why I stress the importance of using an experienced mortgage broker.  Someone who tracks these changes.  So you don't have to.

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Changes to the mortgage stress test

Ottawa, ON, February 18, 2020 – Earlier today, Minister of Finance Bill Morneau announced changes to the mortgage stress test.

The new benchmark rate used to determine the minimum qualifying rate for insured mortgages, coming into effect on April 6, 2020, will be the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications, plus 2 per cent.

Recently, the gap between the Bank of Canada’s five-year benchmark rate and borrowers’ actual contract rates has been widening, suggesting the benchmark rate has become less responsive to changes in the market.

In October 2016, Finance Canada introduced a stress test for insured mortgages. In 2017, the Office of the Superintendent of Financial Institutions (OSFI) issued…

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What you need to obtain a Mortgage

A home purchase is one of the largest assets and the biggest debt that a person will have. If this is your first time obtaining mortgage, then there are a few things that you need to know about what is required to qualify.

1)      Credit History: How is your current credit and how has it been in the past? Your financial institution will look at your rating, and that everything is in good standing. If you are able to manage your debt, then it reflects on your ability to manage house payments.

2)      Debt Load: What are your liabilities? How much debt do you have? Your financial institution will look at the amount that you owe compared to the amount that you earn. Your debts should not exceed 40 to 42 % of your gross income, and your housing…

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Lethbridge Real estate Market

Have you noticed that with all the turmoil in the world that thing are getting a little crazy ?   Considering all the craziness in the worl.  Real estate still seams to be a pretty safe bet.
Prices have begun to back off a bit in recent months.  But Lethbridge has had only small fall backs in pricing.  But even these small rollbacks can have a positive benefit to the buyer.  And hopefully no negative effects on the seller.   

The new qualifying rules have put a lot of pressure on the first time home buyer and scarred the hell out of even the most seasoned home owners.  It makes it harder for the sellers to find approved buyers. And creates a stressful environment for the buyers.  Although it is meant to protect the market, and the people getting into the…

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Get pre-approved Dont be caught off guard

SAVE YOURSELF SERIOUS DIAPOINTMENT AND GET PRE-APPROVED

FOLLOW THESE TOP TIPS FOR GETTING YOUR DREAM HOME

Getting the right Mortgage is very important. Getting the right mortgage pre-approval is critical.

Are you considering buying a home?   Make sure you take the right steps before you look at potential homes and save yourself some major disappointment. Lots of eager home buyers rush to the market and start looking at homes before checking to see what they can and cannot afford.

That is probably the worst thing anyone can do!

Many times, I have had people call me up and ask to see a home that they found on the web and have fallen in love with. I often caution them once I meet them at the home that if they have not yet talked…

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