Tag: mortgage pre-approval

Is your Mortgage Prep-Approval Verified?

Posted on by markogel@gmail.com

(April 11, 2024)

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Mortgage pre-approvals have become a hot topic of late, particularly the accuracy and validity of them. With so much at stake in Canada’s cut-throat real estate market, prospective buyers have misleadingly been sent to the market believing that their mortgage pre-approvals are intact and verified. But the fact of the matter remains – many mortgage preApprovals (as we know them today) are essentially unverified and highly unreliable. 

Whether you’re dealing with your banker or a mortgage broker, set the bar high and make sure the following points are accounted for within your mortgage preApproval, otherwise you might be in for an 11th-hour shock.

Request a verified mortgage pre-approval from your mortgage broker

A verified mortgage pre-approval means that the application has been underwritten. Many mortgage pre-approvals are unverified and underwritten only when a live offer is presented – this defeats the sole purpose of a mortgage “pre-approval”. Underwriting for mortgage qualification involves meticulously scrutinizing applicant documentation while adhering to stringent lending criteria to assess whether the candidate aligns with an acceptable risk profile for the lender. It’s a complex process, and is often unintentionally misleading as many applicants perceive mortgage qualification as a one size fits all type of outcome. What you may deem as obvious and safe, a lender may view as risky and unacceptable. A verified mortgage pre-approval offers a precise conclusion about your borrowing capacity and essentially eliminates all the uncertainties of mortgage qualification.

Multiple qualification scenarios should be included in your pre-approval

For example, let’s say you have an unspecified amount of debt. There should be a qualification scenario with the debt factored in, and another scenario without the debt. Or perhaps you would like to see an additional scenario that displays how much more you would qualify for with a co-signer. Regardless of how many scenarios you are curious about, don’t hold back in requesting them! If your mortgage broker is annoyed with your requests, then find another.

Interest rates

Both fixed and variable interest rates should be included in a mortgage pre-approval. And equally important, the maximum qualification amount should be displayed for each. In todays interest rate environment, variable rate mortgages yield lower qualification amounts than fixed rates.

Terms and Conditions

This is an absolute must. Whether you agree or disagree with them, the conditions need to be displayed openly in the pre-approval document. Acknowledging your restrictions and limitations ensures that you are swift and efficient throughout your shopping and negotiating phase.

Request touch-ups to your pre-approval

Don’t be shy to inform your mortgage broker if things have changed throughout your property search. For example, if you’ve been pre-approved based on $2,500 annual property tax estimates but are finding that the range is actually $1,800, inform your mortgage broker and have them adjust the qualification accordingly. This difference will result in a higher qualification amount.

Substance

Your pre-approval should contain at least 500 words and various mathematically derived tables and scenarios. The document should be dense and loaded with information.

Availability

Lastly, your mortgage broker should be available outside standard banking hours. Purchasing a property is a dynamic experience, and the pursuit of it is often in the evenings and weekends. Your mortgage broker should be available (within reason) to service general inquiries and emergencies regardless of the time and day.

Do you have a verified mortgage pre-approval? Call or text Marko Gelo right now at 604-800-9593, or Click Here to schedule a free, no-obligation phone call with Marko. You can also call Marko on WhatsApp.

Download my amazing Mortgage App…it’s loaded with calculators and tonnes of useful information!

Don’t want to miss out on the next blog post?  Click Here to have future issues emailed directly to your inbox!

Contact Marko, he’s a Mortgage Broker!

604-800-9593 cell/text | Vancouver (Click Here to schedule a call with Marko!)

403-606-3751 cell only | Calgary (Click Here to schedule a call with Marko!)

Call Marko via WhatsApp!

Download my award winning Mortgage App on your phone

Email: gelo.m@mortgagecentre.com

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@markogelo (Twitter)

Survival Guide for First-Time Home Buyers in Canada

Posted on by markogel@gmail.com

(March 24, 2024)

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In Canada’s ever-evolving real estate landscape, first-time homebuyers are constantly grappling with the ongoing challenges of affordability. Rather than dwell on the perceived unfairness of the market, I’ll instead share insights gained from my extensive dealings with this group. Firstly, I’ll reveal the common mortgage qualification struggles they encounter. Then, I’ll delve into the common approaches and evolving strategies of first-time homebuyers that are proving successful in today’s challenging market.

Depending on which part of the country you reside in, you are likely well-versed in Canada’s challenging real estate landscape, so I’ll keep this list abbreviated and precise. There are a few major challenges that first-timers have to contend with in Canada’s largest and most active markets: Vancouver, Toronto, and Calgary:

Large Down Payments

Vancouver and Toronto are by far the most challenging real estate markets in Canada, especially for first-time buyers. With price trajectories still elevated and no signs of heading in the opposite direction (not substantially anyway), down payments remain the number one challenge for first-time homebuyers. The minimum down payment required to purchase an owner-occupied principal residence in Canada is 5%, but only up to a purchase price of $500,000. Any portion of the purchase beyond $500,000 (and less than $1M) requires a top-up down payment of 10%. And finally, for properties valued at $1M or greater, the minimum down payment escalates to 20%. Gifted sources of down payment (proceeds from direct family members) continue to be a key component in the overall qualification of first time home buyers in Canada. In summary, here are some tiered minimum down payment examples: for a $400,000 property the minimum down payment is $20,000, $65,000 for a $900,000 property and for a $1.1M property, $220,000.

Property Transfer Tax

On top of the minimum down payment tiers, Ontario and BC additionally incorporate substantial Property Transfer Taxes that are due upon completion of the purchase. Here is how much you can expect to pay as a first-time homebuyer for an average-priced condo in Toronto ($695k) and Vancouver ($827k); in Toronto $12,275 and in Vancouver, $6,540 (these figures are as of April 1, 2024 when BC’s new Property Tax rules come into effect). Click on the following links to be redirected to the respective provincial jurisdictions’ property transfer tax calculators: British Columbia, Ontario. There are indeed First Time Home Buyer exemptions and rebates, but they are only available up to a specified purchase price. In BC (effective April 1, 2024), purchases up to $500,000 will receive full exemptions and purchases between $500,000 and $860,000 will receive partial exemptions (Click Here to be redirected to the Property Transfer Tax Calculator of one of Vancouver’s leading legal real estate firms). In Toronto, you are eligible for a full rebate ($4,475) for purchases up to $400,000, but for the rest of Ontario, that rebate is decreased to $4,000 up to a maximum purchase price of $368,333. And finally, there’s Alberta… where there’s no property transfer tax to speak of!

Lack of Inventory

You might be all good on the qualification front but find that the availability of listings in your region is either limited or diminishing. This only hinders the purchasing cycle further as your mentality morphs from innocent-dreamy-property-shopper to fierce-analytical-viking-buyer. Tight markets create stress and force you into situations you haven’t financially prepared for. In competitive markets, it is especially critical to align yourself with top-tier mortgage brokers, real estate agents, and lawyers.

High-Interest Rates

On top of current elevated rates, many forget that a 2% stress test method is applied when qualifying for a mortgage in Canada. Interest rates are definitely on the decline, but prospective homeowners need to stay light on their feet in anticipation of a potential counteraction that the real estate market will heat up as rates begin their descent. Many prospective homebuyers are “rolling the dice” in today’s environment accepting short-term pain (in the form of still high interest rates) for long-term gain.

FIRST TIME HOME BUYER STRATEGIES AND TIPS

INTEREST RATES 

When it comes to interest rate selection, there are two camps; short-term fixed and variable. Both are sound approaches, but for first-time buyers, the fixed-rate approach seems to be the prevailing choice simply for the reason that it generates the best return for your qualifying amount. Although the outlook for variable rate mortgages is promising, the current rate of prime in Canada (7.20% as of the date of this article) significantly diminishes your qualifying amount. At the moment, the rate variance of a variable and fixed-rate mortgage could be as high as 2%, which equates to a qualification difference of up to 15%. For example, an applicant with a $100,000 annual income would qualify for a $408,000 fixed-rate mortgage, but under the higher variable rate, the maximum qualification would decrease to $365,000.

DOWN PAYMENTS

Currently in Canada, the minimum down payment is 5% up to a purchase price of $500,000, then 10% on the balance thereafter up to $999,999. For purchases that are $1M or greater, the minimum down payment threshold is 20%. For down payments less than 20%, qualification criteria are rigid and non-negotiable (your qualification amount should be similar to virtually every lender in Canada). However, for down payments that are 20% or greater, qualification guidelines loosen considerably and qualification amounts vary significantly from lender to lender. Interest rates are negotiable regardless of the amount of your down payment, but qualification amounts are only negotiable when down payments are 20% or higher. Acceptable forms of down payment: own sources and gifted proceeds (from family members). Proceeds from borrowed sources are not acceptable forms of down payment (i.e., personal line of credit).

CO-SIGNERS

Co-signers are becoming increasingly common amongst first-time home buyers in Canada. An important thing to note about co-signing is that it doesn’t have to be a forever thing (for the co-signer). As soon as the primary applicants can show evidence that they qualify for the mortgage on their own, the co-signer can be removed. This could be enacted at any time throughout the life of the mortgage. Ask your mortgage broker to provide exit scenarios for your co-signer; this will make all parties more comfortable with the transaction.

TRY TO PURCHASE A PROPERTY WITH A RENTAL SUITE 

This might be difficult in some markets, but if possible, give this some serious thought. A property with a rental suite could offer a pleasant qualification boost for a first-time home buyer. For example, with a $100,000 annual income, you could max out with either a $400,000 property without a rental suite, or you can explore property types with rental suites in the $600,000 range. Both outcomes are possible, but the latter receives an additional qualification boost as the rental income of the suite provides additional eligible qualifying income.

VERIFIED MORTGAGE PRE-APPROVAL

With so much at stake in today’s highly competitive market, it is critical to align yourself with a top-tier mortgage broker. Just as an athlete prepares for a championship game, a buyer should also enter a market fully prepared and informed. One should expect the following to be included in a pre-approval:

  • Request a verified mortgage pre-approval from your mortgage broker. A verified mortgage pre-approval means that the application has been underwritten. Many mortgage pre-approvals are unverified and underwritten only when a live offer is presented – this defeats the sole purpose of a mortgage “pre-approval.” A verified mortgage pre-approval firmly calculates your maximum purchasing power and eliminates any unknown variables.
  • Multiple qualification scenarios should be included in your pre-approval. For example, let’s say you have an unspecified amount of debt. There should be a qualification scenario with the debt factored in, and another scenario without the debt. Or perhaps you would like to see an additional scenario that displays how much more you would qualify for with a co-signer. Regardless of how many scenarios you are curious about, don’t hold back in requesting them! If your mortgage broker is annoyed with your requests, then find another.
  • Interest rates. Both fixed and variable interest rates should be included in a mortgage pre-approval. And equally important, the maximum qualification amount should be displayed for each.
  • Terms and Conditions. This is an absolute must. Whether you agree or disagree with them, the conditions need to be displayed openly in the pre-approval document. Acknowledging your restrictions and limitations ensures that you are swift and efficient throughout your shopping and negotiating phase.
  • Request touch-ups to your pre-approval. Don’t be shy to inform your mortgage broker if things have changed throughout your property search. For example, if you’ve been pre-approved based on $2,000 annual property tax estimates but are finding that the range is actually $1,800, inform your mortgage broker and have them adjust the qualification accordingly. This difference will result in a higher qualification amount. The increase could be marginal, but every dollar counts in a competitive market.
  • Your pre-approval should contain at least 750 words and various mathematically derived tables and scenarios. The document should be dense and loaded with information.
  • Lastly, your mortgage broker should be available outside standard banking hours. Purchasing a property is a dynamic experience, and the pursuit of it is often in the evenings and weekends. Your mortgage broker should be available (within reason) to service general inquiries and emergencies regardless of the time and day.

Do you have a verified mortgage pre-approval? Call or text Marko Gelo right now at 604-800-9593, or Click Here to schedule a free, no-obligation phone call with Marko. You can also call Marko on WhatsApp.

Download my amazing Mortgage App…it’s loaded with calculators and tonnes of useful information!

Don’t want to miss out on the next blog post?  Click Here to have future issues emailed directly to your inbox!

Contact Marko, he’s a Mortgage Broker!

604-800-9593 cell/text | Vancouver (Click Here to schedule a call with Marko!)

403-606-3751 cell only | Calgary (Click Here to schedule a call with Marko!)

Call Marko via WhatsApp!

Download my award winning Mortgage App on your phone

Email: gelo.m@mortgagecentre.com

Facebook

@markogelo (Twitter)

The Truth Behind Mortgage Pre-Approvals and Rate Guarantees

Posted on by markogel@gmail.com

(Jan 12, 2024)

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The doors to homeownership often begin within the elusive world of mortgage pre-approvals. It’s a crucial step in the home-buying journey, offering the promise of a verified mortgage pre-approval, but also a secured interest rate that shields you from the unpredictable fluctuations of the market. However, there’s a hidden secret within this seemingly straightforward process that many homebuyers are unaware of – the interest rates in mortgage pre-approvals are not always as steadfast as they appear. Imagine securing an interest rate at 5.19% for the next four months, only to discover in the third month that market rates have dropped further to 4.99%. The surprising revelation? Your rate may not automatically adjust, leaving you stuck with the initially agreed-upon 5.19%. This isn’t a result of financial schemes or a ploy to maximize profits (although lenders do earn more on the higher interest rate); it’s more a consequence of file management intricacies within mortgage brokerages and banks. The complexity lies in whether your mortgage provider has the systems and processes in place to proactively manage rate adjustments. In this blog, we delve into the intricacies of why these adjustments are often overlooked, uncovering the surprising truth behind why your pre-approved interest rate may not reflect the current market reality.

Rate Hold Policies

Banks offer interest rate holds on all their terms, but for variable-rate mortgages, they reserve the discount rather than the rate. For instance, if your variable rate is Prime minus 0.90%, only the ‘minus 0.90%’ would be held, not the ‘Prime Rate’. Moreover, most banks restrict ‘blanket reserving’ the entire rate product table; you are allowed only one term/rate at a time, unless you’re utilizing a mortgage broker, who can secure multiple rate holds with various lenders. Rate hold periods can range from 30 to 120 days. It’s also important to note that a formal credit check is typically required for a rate hold. Here, the advantage lies with a mortgage broker, as opposed to a banker, because they can repeatedly submit applications to various lenders using the same, singular application. One application, one credit report, and access to endless lenders.

Float-Down Policies

Now, here’s where things get interesting. The key to rate adjustments lies within a built-in policy that lenders incorporate into their products, known as the rate float-down policy. This policy allows lenders to discontinue a current rate hold and reset it to the lower prevailing market rate if applicable. However, there’s a kicker. The mortgage provider, be it a broker or banker, needs to formally request it. That sounds easy enough, right? The task seems reasonable and simple, but the reality is that many bankers and brokers often lose track of their mortgage approval files and simply forget. Therefore, a better rate could slip by if your mortgage provider isn’t on the ball to recognize and act upon it! There’s one more thing to be aware of when it comes to interest rate float-down policies. While I’ve never heard of a lender that doesn’t allow for it, the diversity among lenders lies in the frequency of adjustments they permit. For instance, lender A could allow unlimited requests for float-down adjustments, whereas lender B might only allow one singular request. This is a critical guideline for your mortgage broker to be aware of to prevent them from using it up too early in the rate hold tenure, jeopardizing the opportunity to capitalize on further rate drops throughout your rate hold period.

Seek a Mortgage Broker Rather Than a Single-Brand Bank

If your mortgage pre-approval is with a bank, you’re missing out on all the possibilities the market has to offer! What if market rates fall, but the single-brand bank you’re currently tied up with maintains its rate? This type of circumstance is an easy fix with a mortgage broker as they would simply pivot and re-submit to the better lender. However, with a bank, there are no other options. Bank representatives are not brokers; they cannot tender your application to the market. All they have to offer you is what’s in their shareholders’ best interest! Optimize your experience and partner with a mortgage broker right from the beginning. Not only will you have access to a larger pool of lenders, but you’ll also be able to access them all at once without having to set foot in their branches!

Is Your Mortgage Broker Legit?

And lastly, ensure you choose a broker that truthfully works with multiple lenders – you might be surprised at how many don’t. In addition to working with multiple lenders, inquire about the type of file management system they utilize to stay on top of changing interest rates. Will your rate hold be monitored throughout its entire tenure, or will it be forgotten until its completion date?

At this point, you might be curious about my internal file management. My production team relies on an internal system called the RateWatch Dashboard. After completing a pre-approval, the applicant’s details are entered into the RateWatch Dashboard, essentially a calendar-style tracker equipped with rate float-down reminders and alarms. We check it countless times every day; it’s like a video game that you never want to stop playing. This system is a critical component of my operation, eliminating human error from what would otherwise be a task prone to such errors. Alongside the RateWatch Dashboard, we receive daily rate updates from our pool of 23 lenders. While one might assume that all applications are paired with lenders offering the best rates and terms, lately, an increasing number of applications are matching up with lenders that adjudicate for higher mortgage approval amounts rather than lower interest rates. The difference in rate is insignificant in many cases, but the variation does exist nonetheless.

DISCLAIMER: The interest rates cited in this article are accurate as of January 11, 2024. Rates are subject to change, and by the time you read this article, they may have increased or decreased. For the most current rate quotes, please contact Marko Gelo directly via email or text at 604-800-9593.

Want to discuss your rate hold? Call or text Marko Gelo right now at 604-800-9593, or Click Here to schedule a free, no-obligation phone call with Marko. You can also call Marko on WhatsApp.

Don’t want to miss out on the next blog post?  Click Here to have future issues emailed directly to your inbox!

Contact Marko, he’s a Mortgage Broker!

604-800-9593 cell/text | Vancouver (Click Here to schedule a call with Marko!)

403-606-3751 cell only | Calgary (Click Here to schedule a call with Marko!)

Call Marko via WhatsApp!

Email: gelo.m@mortgagecentre.com

Facebook

@markogelo (Twitter)

Ineligible Qualifying Income?

Posted on by markogel@gmail.com

(April 14, 2022)

…carrying on from last weeks start of a multi-post series, Turning a Decline into an Approval, here is Decline Reason #2 – Ineligible Qualifying Income: 

Decline Reason #1: Not enough income

Click Here to expand on Decline Reason #1

Decline Reason #2: Ineligible Qualifying Income

This is a frustrating one that many applicants have a tough time wrapping their heads around.  Some of the more common income types that tend to derail qualifications are self employment, part-time employment and 100% commission incomes.  It’s not that the type of income is restricted, but more so an issue of the length of time it was enacted.  For example, self employed income is totally acceptable, but only if you have a minimum established tenure of 2 years (and the same goes for 100% commission income types).  Here are some tips on how to overcome ineligible income types:

  • Get a Co-Signer!  Perhaps you are in the first year of your new business or you have just taken on a lucrative commission payment structure, both of which may be trending in the right direction.  However, as you only have one year under your belt, your income is deemed ineligible.  The absolute minimum tenure for self employment, part-time, and 100% commission income is 2 years. As I mentioned in the prior blog (Decline Reason #1), you will likely require a co-signer if you are in this category. And if that’s the case, be aware that if all goes well and you carry on your job as per plan, you will hopefully graduate to independence once you accumulate your two years, thus making your income eligible! At this time you can then challenge the lender and provide income documents to verify that you can now service the mortgage based on your own merit (at which time you can then set free the co-signer!). Click Here to read more about the terms and conditions of being a co-signor.
  • There are always exceptions to the rule!  The 2 year minimum is pretty much a hard rule, except for the following scenarios: 
    • Part-time income can be used if it is classified as Regular Part-Time.  This means that although your hours do not equate to a standard 40 hour cycle, a Regular Part Time status ensures that you earn a regular and consistent income which is looked upon more favourably by lenders.
    • Salary Component Commission incomes that feature a fixed salary component are regularly accepted by lenders, but the commission component is only factored in if there is a 2 year record of earned commissions, in which case a two year average would be used for qualification purposes. If you haven’t quite accumulated 2 years worth of commission earnings, you can certainly use the eligible base salary component of your income (if you have one).
    • Newly established self-employed applicants can also fall in the exception category, but only if they have transitioned to a business very similar (or related) to the employment they departed from.  For example, many engineers from Calgary’s oil and gas sector often switch from being payroll employees to self-employed contractors without even leaving their workplace (and vice versa).  Another recent file I worked on involved a massage therapist who recently transitioned from being a payroll employee and seamlessly changed to a self contracted therapist with a bulk of his patient list remaining intact while he also pursued other new patients and referral sources.  Instances like these are acceptable by lenders as they are regarded as low-risk employment transitions.
  • Check in next week for Decline Reason #3: You have credit issues

OTHER RELATED ARTICLES: 

Difference between Co-Signer and Guarantor

High Net Worth Mortgage – increasing your mortgage with your assets

Contact Marko, he’s a Mortgage Broker!

604-800-9593 direct Vancouver (Click Here to schedule a call with Marko!)

403-606-3751 direct Calgary (Click Here to schedule a call with Marko!)

Facebook

@markogelo (Twitter)

Maximizing your income when qualifying for a mortgage

Posted on by markogel@gmail.com

(April 4, 2022)

As is the case with many things in life the path to success is anything but a straight line and when it comes to qualifying for a mortgage, the same holds true.  Here’s a quote that best sums up the sometimes tumultuous mortgage qualification journey: 

“Extraordinary things are always hiding in places people never think to look“

The quote is by American writer, Jodi Picoult, and was probably not inspired by her experience of qualifying for a mortgage, but it definitely speaks to my topic.  These days mortgage approvals don’t come easy.  For starters, they start off as applications at which time the process of adjudication begins until eventually a decision is made to either; award an approval, request further information and/or clarity, or the most discouraging outcome possible- decline the application outright.  If you have experienced (or are currently experiencing) the latter, I’m writing this post to inform you that there is hope!  
Here is the first of a series of multiple posts focused around the topic of turning declines into approvals. Check in weekly as more tips and strategies will be revealed!

Decline Reason #1: Not enough income

This is probably the most common reason for a decline and likely the easiest one to troubleshoot.  Here are some effective countermeasures that could help you overcome a low qualification income:

  • Provide more information!  Have open and exploratory conversations with your mortgage broker – reveal all.  An experienced mortgage broker will catapult your qualification to higher levels due to their knowledge and access to niche qualification programs.  An experienced mortgage broker will request additional (sometimes excessive) documents during the pre-approval stage for the sole purpose of developing an optimal application base to present to lenders.  More information equals more possibilities.  For example, rather than settling for a recent pay stub and an employment letter, a pro-active mortgage broker could further request your most recent 2 years (or even 3 years) of personal income tax documents to scan for patterns, trajectories, or even other unknown sources of income that you were simply unaware of.  The end result is often a higher mortgage qualification amount than if you had simply provided the bare minimum income verification.
  • Get a Co-Signer!  Stop feeling ashamed and just ask your parents to co-sign.  I like to use the term “borrowing” a parent for a couple of years.  Almost every adult progresses and improves their earnings with time and there’s no reason to doubt that you will too!  Ask your mortgage broker how much extra income you actually require to qualify and if it’s not that much, you will likely be able to remove your parents from the mortgage (and set them free!) in a year or two.  So go ahead and ask your parents if you can “borrow” them for a couple of years.  By the way, co-signers are not limited to only mom and dad…you could add other family members, friends, or basically anyone with a pulse!  Click Here for more information on Co-Signing.
  • Use your net worth to top up your purchasing power!  If you have substantial assets, some lenders will allow you the ability to top up your mortgage qualification amount proportional to the value of your assets.  The assets must be in liquid form (cash savings, investments, etc) and cannot include the down payment proceeds already reserved for the transaction.  Existing real estate equity is not an eligible liquid asset.  For example, let’s say you qualify for a $250,000 mortgage based on your income, but you also have a $300,000 retirement fund.  Under a net worth qualification guideline you could qualify for a $550,000 mortgage even though your income is only able to qualify for $250,000.  Click Here for more information on Networth Mortgage Qualification.
  • Check in next week for Decline Reason #2: Ineligible Income

OTHER RELATED ARTICLES: 

Difference between Co-Signer and Guarantor

High Net Worth Mortgage – increasing your mortgage with your assets

Contact Marko, he’s a Mortgage Broker!

604-800-9593 direct Vancouver (Click Here to schedule a call with Marko!)

403-606-3751 direct Calgary (Click Here to schedule a call with Marko!)

Facebook

@markogelo (Twitter)

Mortgage preQualification

Posted on by markogel@gmail.com

Qualifying for a mortgage is not rocket science, connect with us and we’ll be done in no time!

  • reserve a rate hold for up to 120 days
  • it’s FREE to pre-qualify for a mortgage!
  • we actually pre-qualify you for a mortgage as though you are really purchasing a home.  Most lenders just issue a make belief “mortgage pre-approval” certificate with a rate hold
  • in order to pre-qualify for a mortgage, your income and credit standing must to be reviewed
  • our process requires about 7 minutes of your time (usually via a telephone interview)
  • the amount of detail included in our Mortgage preQualifications are second to none.  We’ll include various scenarios of rate offerings and explore all other options pertaining to your particular profile…you will not be disappointed!
  • mortgage preQualification’s are valid as long as you maintain your employment that you stated during the application interview.  Also, no other credit accounts should be attained while you are pre-qualified for a mortgage
  • all applicants are eligible for a mortgage preQualification: New to Canada, Self Employed, Investors, First Time Home Buyers, 100% commissioned, Part-time income, etc.
  • a minimum down payment of 5% is required for mortgage eligibility (the entire 5% can be gifted from an immediate family member).  For purchases over $500,000, the minimum down payment increases to 10%, but only on the portion over $500,000.  For example, for a $600,000 purchase, the minimum down payment would be $35,000.
  • co-signors are sometimes required to bump up your mortgage qualification amount.  We will include a scenario that will give you an idea of how the addition of one would impact your scenario
  • if you are self employed, all lenders require a two year track record of your business.  If you have been self employed for less than two years, exceptions are granted from time to time.  More documentation may be required and the minimum down payment can be as high as 25%
  • one application, one credit check and access to Canada’s TOP lenders!

Marko Gelo

Mortgage Broker
Vancouver direct: 604-800-9593
Calgary direct: 403-606-3751
E-mail: teamgelo@mortgagecentre.com

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