Introduction
For most people, buying a home will be the largest purchase they will
ever make. Besides being a necessary source of shelter for you and your
family, it may also be an important investment for your future.
As a mortgage broker it is my job to find you the best possible mortgage
financing for your own unique situation.
The following are just a few of the lenders I work with on your behalf:
- Citizen's Bank (owned by VanCity)
- Bank of Montreal
- FirstLine Mortgages (owned by CIBC)
- Hong Kong Bank
- Laurentian Bank
- Scotiabank
- Squamish Credit Union
- Toronto Dominion Bank
Understand that all mortgages are not created equally. There can be
huge discrepancies between institutions.
I would be pleased to assist you with your home purchase. An application
can be made by telephone, fax, email or in the convenience of your home
or office (use the contact info above). There are no fees for my services
on approved credit.
Mortgage Qualification Procedures
General Information:
There are many factors taken into consideration when a mortgage lender
is qualifying you for a purchase. Among the deciding factors are: family
income and job stability, past credit history, net worth (assets minus
liabilities), source of downpayment, the amount of the mortgage and
it's percentage of the purchase and finally your debt service ratios.
You
will be asked to fill out a mortgage application and authorize the institution
to perform a credit investigation (also called a Credit Bureau or "Bureau"
for short). There are many sources of funds to finance your purchase:
banks, trust companies, life insurance companies, other finance companies
and private lenders.
 Job Stability:
Lenders like to see the progression of your employment over a two to
five year period. Generally speaking, the minimum length of time on
your current job that is considered acceptable is 1 year. If you have
been employed less than 1 year in your current job, the lender may make
an exception provided your current job is related to your previous one
(i.e. in the same industry) or you were previously in school.
Sources of Income:
Whether you are salaried, hourly or commission-based employee, the
lender will require proof of your income. In order to "use"
your income for qualification purposes, the lender must be confident
that it is:
a) Stable and likely to continue over a reasonable
period of time, and
b) Declared to the government on your income tax return.
Any income that is earned as "cash" or "under the table"
cannot be used to qualify you for a mortgage. It is up to the lender
to decide what is appropriate in each case. If you are self-employed,
the verification process is a bit more complicated in that you will
have to provide a minimum of 2 years worth of business financial statements
and tax returns.
Employment Income Verification
|
|
| Salary |
Signed and dated letter from an authorized officer of the company
outlining the base annual salary, length of employment and any additional
commissions or bonuses to be paid. |
| Hourly |
Same as above, except that hourly rate and number of hours worked
per week must also be stated in the letter. Recent pay-stubs may also
be requested. |
| Commission |
Same as above, PLUS outline of commission structure and history
of earnings (2 to 3 years). |
| Part Time |
Income can be used to qualify provided you have been earning
it at a consistent level for the past 2 years. A salary letter (as above)
and pay-stubs would be required. |
| Self Employed |
2 to 3 year records of the following: business financial
statements and personal tax returns (may also require Revenue Canada
Notice of Assessment). |
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