If you receive bonuses for your work you will still have to establish a track record. The lender usually requires your income for the last 3 years to do this.
This will depend on your occupation as to how long you need to be with your present employer in order for your income to be used to qualify. It could be as little as 3 months or 3 years, your lender will be able to assist you as to your qualifications.
You will be required to produce income tax notices of assessments for the previous 3 years. If you have a minimum of 25% down and an excellent credit rating, some lenders may not require income verification but you would have to pay the posted interest rate. Consult with your lender to see what options are available to you.
How important is your Credit Rating?
An excellent credit rating will help you qualify for a mortgage and it may also qualify you for a discounted interest rate. You can maintain an excellent credit rating by making your payments on or before their due dates. Late payments lower your credit score on your rating making mortgage approval difficult if not impossible.
You have encountered financial difficulties
If you are unable to make your payments on time because of financial problems notify your lender immediately of your situation. If you are honest with them they usually will work with you through this difficult period. If you just quit making payments without notifying them why, they will register your missed payment with the Credit Bureau.
Check your Credit Rating
It is a good idea to check your credit rating before you apply for a mortgage. The information in your credit file is used to give you a credit score rating which indicates the likelihood of you repaying your debt. There is no charge to request your credit report and it takes 2-3 weeks to receive it. There are 2 agencies you can contact for your credit information. They are Trans Union of Canada Inc. and Equifax. You can access the request forms from the internet. When you receive your report, check it for any discrepancies, mistakes can occur, so accessing the information before you apply for a mortgage will allow you to correct them.
You don’t have a Credit Rating
In order to establish a credit rating you will need to borrow money. This can be done by opening a charge card, using it on a regular basis and making the payments on time.
Amount of Down Payment required
Most properties require a minimum 5% down payment. It is now possible to borrow the down payment as long as your income can support this payment as well as the mortgage payment. Some lenders will allow you to purchase a home with zero down but will require you to have stable employment income as well as an excellent credit rating. The interest rate however may be higher than the conventional way. Contact your lender for particulars.
Make your Offer conditional
Even if you are pre-approved for a mortgage it is advisable to make your offer subject to you obtaining mortgage approval. Your lender will still have to approve the home you have purchased. If you do not make your offer conditional to financing there could be legal ramifications if you were unable to complete the sale.
Free Mortgage Consultation
Before you purchase your real estate property, you need to know how much a mortgage you qualify for. You also will want to get the best interest rate and the most favorable terms.
A mortgage broker has access to many lenders and is able to offer the best interest rates and terms from a variety of conventional and private sources.