Mortgage Matters: Misconceptions in Mortgage Qualifications (Part 1)

With all the of the industry’s mortgage qualifying standards, one fact remains there is an abundant of lenders and products to suite all applications. It simply is not a matter of qualifications yet the pricing that you qualify for. Most will be pleasantly shocked at the variety of financing available the challenge for most consumers remains in the pricing challenges, simply put the consumer must be willing to accept this reality if they are committed in getting into the Real Estate market and/or remaining in it.

Here are a few common misconceptions:

Is a bank is the best place to get a mortgage?
With 55 mortgage lenders available to the public this is evidently not the case. Alternative and “B” lenders offer an array of opportunities to obtain mortgage financing.

Is the maximum length of time to pay off a mortgage is 25 years?
No, we still can offer a 30 year amortization and have 1 lender that offers a 35 year amortization.

Will I not qualify for a mortgage if I’m new to Canada?
There are numerous special product offers and incentives for “New to Canada” borrowers, in essence they have more lenient qualifications then Canadians.

Do I only have 1 opportunity to put 5% down payment if I am a first time home buyer?
Incorrect, you can place 5% down payment on your principle resident purchase whether your first home, 2nd home or 3rd etc only having 1 principle residence at a time of course.

Is the minimum required down payment 20% of the purchase price?
You can place anywhere from 5-19% of a down payment to void the “Insured Premium” requirement, 20% is the minimum downpayment if you want to waive the requirement.

Can I not qualify for a mortgage if I have an outstanding Student Loan?
Absolutely not, typically student loans have very low monthly payments and have minimal effect on the debt ratios when qualifying for a mortgage.  Lenders will consider your employment, income, net worth and debt load overall when assessing your qualifications.

Do I need perfect credit to qualify for a mortgage?
Nope, the preferred minimum credit score is 680 however many lenders will use common sense, accept a valid explanation and accept a letter of explanation or receipt of full payment of the arrears or collection(s). You also have time to consult with a mortgage professional that can assist prior to applying to build credit, update any errors on your report and pay off necessary collections.

Again, I will stress that working with an experienced, qualified Mortgage professional is the key factor in all financing…

Marisa Parise is a Mortgage Broker with over 30 years of experience in the financial industry. This Bolton based brokeris proud to use her established network of over 50 lenders to service her clients residential, industrial and commercial financing. This enables her to obtain customized products, competitive rates, flexible options, maximum pre-payment options and quick response times. Her extensive expertise can resolve any mortgage related inquiries and provide a clear understanding of best suited options. For your mortgage solutions Marisa Parise can be reached at save@marisamortgage.com or 416-305-SAVE (7283) or learn more on her website MarisaMortgage.com