How to qualify for a mortgage in Ontario
To qualify for a mortgage in Ontario, there are a number of factors that lenders will consider. Here are some of the key things that lenders look at when assessing mortgage applications:
Income: Lenders will want to see proof of income, including pay stubs and tax returns. They will also look at your debt-to-income ratio to determine whether you can afford to make mortgage payments.
Credit score: Your credit score is a measure of your creditworthiness. Lenders will look at your credit score to determine the likelihood that you will make your mortgage payments on time.
Employment history: Lenders prefer borrowers who have a stable employment history. They will want to see that you have been employed for a certain length of time and that you are not likely to lose your job in the near future.
Down payment: In Ontario, a minimum down payment of 5% is required for homes with a purchase price of up to $500,000. For homes with a purchase price above $500,000, a minimum down payment of 10% is required.
Property type: Different types of properties may have different requirements. For example, lenders may have different eligibility requirements for condos compared to single-family homes.
Other debts: Lenders will consider your other debts when assessing your mortgage application. This includes credit card debt, car loans, and student loans.
Property value: Lenders will appraise the property to determine its value. This helps them ensure that they are not lending more money than the property is worth.
It's important to shop around for mortgages and compare rates from different lenders. In addition, you may want to consider working with a mortgage broker who can help you find the right mortgage for your needs.
At Farley Morgage, we have an experienced team of mortgage experts who can help you navigate the mortgage process.
Contact us today to learn more.
