what are my chances and where do I go?
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Thread: what are my chances and where do I go?

  1. #1
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    what are my chances and where do I go?

    Hi!

    I am trying to figure out if I can get a mortgage for a town-house/condo with a listed price of 200K. My wife and I are full-time students, we also work part-time, but for less than 2 years for our current employers. We make around 32K together (employment income). I have a credit score of 766. We have accumulated OSAP debts of 22K each. What is the likelihood of our getting a mortgage and which route shall we go? We went to a bank and they said to wait till we have 2-year experience with our employers.

    Thank you!


  2. #2
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    Based on income level and propensity to pay.
    What is your down payment? What other debts to you have? already I can tell you with 32k income and 44k student loan debt will definitely not work in your favour.

  3. #3
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    Quote Originally Posted by redsgomarching View Post
    Based on income level and propensity to pay.
    What is your down payment? What other debts to you have? already I can tell you with 32k income and 44k student loan debt will definitely not work in your favour.
    No other debts. I have 10K cash for down payment. I also have 30K credit line not being used currently. Not sure though if I can use it for DP.

  4. #4
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    I don't want to sound rude, but 2 full time students living on OSAP, and you want to be home owners right now?

  5. #5
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    The rules for qualifying change all the time. What was true yesterday can change today. Best bet is to ask a mortgage broker, they can shop you around to a much larger pool of sources.

    As someone who has been getting mortgages for years, I can tell you that even if someone says "no", that doesn't mean much. There are at least 5 different divisions in the same bank that can issue mortgages, all with different underwriting requirements. That means I've been rejected by the same bank at least 4 different times on the exact same deal, in the same time period, before I got the mortgage at that same bank.

    There are the in branch mortgage specialists, their independent mortgage specialists (these even have people with different abilities I've found, if one can't get it another may), there are then specialist divisions with different qualifiers such as small business, agriculture, high net worth banking, etc.

    That's just at one bank...a mortgage broker may have access to even more at that same bank. Then you have 5 big banks, online banks, specialist mortgage lenders, secondary lenders...

    If you really want a mortgage, you can probably get one...just be VERY careful of the terms. Some of these lenders can be loan sharks too.

  6. #6
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    You can't afford it.

  7. #7
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    Quote Originally Posted by Sashok View Post
    No other debts. I have 10K cash for down payment. I also have 30K credit line not being used currently. Not sure though if I can use it for DP.
    I used to work at the bank and know the mortgage rules - this won't help you.
    Your debt-servicing is insanely high.
    Income before taxes for 2 people is 32k, monthly that turns into = approx 2700 per month.
    Not sure how much your student loan payments are but they will be included in your servicing ratio.
    Your mortgage payment is approx 1k based on what you provided. And this is assuming you have no other debts like you stated (rarely this is the case in my experience).

    Why don't you rent for a while and save? This is beyond a bad idea.

  8. #8
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    Quote Originally Posted by Eder View Post
    You can't afford it.
    my logic regarding if I can afford it or not based on the fact that I've been paying a rent of 1.3K for a quite some time already... I chose the property which would entail similar monthly payments.

    Regarding OSAP debts: since we are still in school, Government is not asking to pay off the debt, but even when we are out of school, the payment will be calculated taking into account our then income, so, there is, social-assistance coefficient (let's call it that) in the repayment formula. Would lender take this fact into account? Also, would they be interested the course we are enrolled in, say, if we are both in medical school, would that make any difference?

    Thanks again for all the responses!

  9. #9
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    Quote Originally Posted by Sashok View Post
    my logic regarding if I can afford it or not based on the fact that I've been paying a rent of 1.3K for a quite some time already... I chose the property which would entail similar monthly payments.

    Regarding OSAP debts: since we are still in school, Government is not asking to pay off the debt, but even when we are out of school, the payment will be calculated taking into account our then income, so, there is, social-assistance coefficient (let's call it that) in the repayment formula. Would lender take this fact into account? Also, would they be interested the course we are enrolled in, say, if we are both in medical school, would that make any difference?

    Thanks again for all the responses!
    You need to consider the costs of home ownership as well.
    Insurance, condo fees, utlities, taxes are all expenses that add together on top of your mortgage payment. Lets also factor in the fact that you will have closing costs, register cost, appraisal because you are only putting 10k down, furthermore you will have CMHC which will add more to your payment.

    May I ask why you even want to do this? If you are in medical school you will obviously have to complete a residency somewhere and that could be anywhere. Why tie yourself down to a place and go through this hassle if you might have to leave?

  10. #10
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    Let me know which bank you get a mortgage from if you buy the condo...I will need to modify my portfolio.

    Try this quiz.

    http://www.getsmarteraboutmoney.ca/t...x#.VuIRcNCCS00


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