Honest BC Mortgage Answers

This will vary according to the property value and usage. The minimums are lowest for owner occupied homes, increasing with the price of the home, rental properties require significantly more, and vacant land even more.

These thresholds are regulatory and can change over time, so be sure to check them before using articles. Shabbir Patel confirms that it is a requirement now for the exact amount you would be purchasing and the type of property.

Yes, and a lot of consumers are amazed. Lenders trace where the money came from, not merely that it sits in your account. Gift from family, registered savings withdrawal and money from a sale are acceptable, but they all have to be accounted for in different ways. Older funds in your account are less likely to spark questions than are funds that were recently deposited into your account.

There isn't a single number and the score isn't the only indicator. Lenders also look at the length of time your credit history has been established, the regularity of your payments and the percentage of your available credit that you use regularly. Two people can be equally scored but come out with very different assessments.

When your credit misses prime criteria, alternative lending is usually available and often becomes a useful stepping stone back to prime at renewal, not a permanent position.

Yes, typically, the problem is not income, it's documentation. Smart tax planning is an effective way to reduce the income you declare and prime lenders qualify you based off that amount determined through tax planning. This gap is the number one reason capable business owners get declined.

Depending on the lender, business bank statements, expense add-backs or stated income programs can paint a more realistic picture. Many self-employed borrowers qualify for prime once the file is prepared properly. Explore our self-employed mortgage options for details.

Federally regulated lenders have to qualify you at a higher rate than what you are contracting for, to insure that you can handle a higher rate. Applies to most new mortgages and refinances (straight lender switches at renewal are generally not subject).

In practice it turns out that you qualify for less than your contract rate means on its own, which is why online affordability estimates and basic calculators can be optimistic.

Yes, frequently and that is well worth knowing. There are significant variations in how lenders evaluate income, credit and property. Declined is only the opinion of one lender and not necessarily a reflection of the applicant; in fact, files turned down at one lender often are accepted by a different one.

Also, it's important to determine whether the file was simply presented poorly, which is something that can be corrected without going with a more expensive lender.

Yes, more than the majority buyers would like. The property is viewed by the lender as well as the applicant. Even with a strong borrower, strata financial health, rental restrictions, unusual lots, rural acreage, age/condition of the building, and title issues can all influence a decision.

Often yes, once the bankruptcy is discharged or the consumer proposal completed. Fixed waiting periods are set by the prime lenders. In fact these files often take a full term to be reclaimed into the prime world of lending due to the fact that alternative lenders take the time to determine when it was, what you've rebuilt since and whether the underlying situation has been resolved.

In most standard home mortgages, the lender goes to the broker and you will not have to deal with any direct cost. A few alternate, private and commercial files do require a price. If a fee is charged, Shabbir Patel makes this clear in writing prior to entering into any commitment, not after!

One mortgage credit check will only have a slight, temporary impact on your score. An individual's shopping for banks one at a time causes greater damage by making more applications to several lenders over a longer period of time.

A broker only pulls credit once and submits that same credit file to the most appropriate lenders; having several separate applications to lenders is typically not as advantageous as one coordinated submission.

Not during an initial conversation, and not automatically when you submit a form. Credit is only checked with your permission, and with a legitimate active application. That consent is on the application form, it's a separate checkbox, there's no general consent.

It is only used to evaluate your enquiry, in line with our Privacy Policy. Nothing goes to any lender unless you tell us to, and if you don't want to go any further, that's that.

Not identity documents, nor account details, those go through a secure channel offered by Shabbir Patel. Always assume any e-mail message that asks for your Social Insurance Number, banking details or full identity documents is a scam and never provide it to any broker or lender.

No. An exchange is just an exchange: no submission, no signature, no application is done without your directions. Remove the information and do nothing with it, or return months later at a later time.

Yes. In some instances, it's a couple months of preparation that moves a file from alternative lending to prime, and that can be worth much more than rushing ahead. Occasionally, a refinance is more expensive than it is worth, or the second mortgage is less costly than breaking a good first mortgage. Where they apply, those will be the answers heard.

Deliberately. Rates are constantly moving and regulatory rates like the minimum down payment required, insured price ceiling, amortization limits and qualifying rates move periodically. Any numbers here are hedged as stale numbers are confusing.

Each rule is explained on our pages and Shabbir Patel validates current figures for you when speaking.