# Will the bank approve my loan if my work contract ends soon.



## Jettam (Feb 21, 2021)

I am trying to get a loan on a house I want to buy in BC. This is my situation:- 

I just got my PR last month. 
I am a contractor in the film industry, and I have only been working in BC for just over a year. I have a good history of employment. 
My current contract finishes in 4 months, but will hopefully be renewed. Or I will find my next contract which is generally easy to find. 
I don't have much debt, and generally, my financials are good.
So my question is. If the bank knows my contract finished in 4 months. Will they be more inclined to not approve the loan? Or are they use to folks that bounce from project to project and not think anything of my soon to end project and grant me the loan?

Can anyone advise on what the bank might do, based on my situation?

Thanks in advance.


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## Just a Guy (Mar 27, 2012)

In my experience, banks tend to look at the past, not the future. Anyone can be fired at any time these days. When my son applied for his fist mortgage they wanted to see six months of employment, knowing he was going back to school in the next term. So, I’d think you’re generally fine, of course the criteria for loans changes all the time.


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## Money172375 (Jun 29, 2018)

I found contract employees one of the toughest deals to get approved. That being said, a good broker gets most people approved. You might pay a higher rate if borrowing from a secondary lender. An expiring contract in 4 months is a matter of concern. Banks like predictable income.

what’s your down payment? What’s the purchase price? Where were you before BC? Have you filed taxes in Canada for many years? How much debt do you currently carry? Any other borrowers? Length of Canadian credit history?


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## Jettam (Feb 21, 2021)

Money172375 said:


> I found contract employees one of the toughest deals to get approved. That being said, a good broker gets most people approved. You might pay a higher rate if borrowing from a secondary lender. An expiring contract in 4 months is a matter of concern. Banks like predictable income.
> 
> what’s your down payment? What’s the purchase price? Where were you before BC? Have you filed taxes in Canada for many years? How much debt do you currently carry? Any other borrowers? Length of Canadian credit history?


In response to your questions:
what’s your down payment - 45%
What’s the purchase price - 2 mil
Where were you before BC - the US
Have you filed taxes in Canada for many years - 1 yr work history in Canada, and I have filled one year of taxes.
How much debt do you currently carry - 2 mortgages making money, and US credit score is excellent.
Any other borrowers - just me and my wife.
Length of Canadian credit history - only been here 1 year but do have an excellent US credit score.


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## Money172375 (Jun 29, 2018)

Jettam said:


> In response to your questions:
> what’s your down payment - 45%
> What’s the purchase price - 2 mil
> Where were you before BC - the US
> ...


I’d guess you will get an approval but it might take awhile and the broker will earn his commission on this one.


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## Money172375 (Jun 29, 2018)

If you haven’t already, I’d start gathering T1 General tax returns for you and your wife. And corresponding NOAs. Also gather 2-3 years worth of US tax returns and two Most recent bank/investment statements from Canada and US. Copies of employment contracts. 

is your wife employed too?


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## Money172375 (Jun 29, 2018)

There are policies for new Canadians and high net worth borrowers that should meet your needs. I’d work with a non-bank broker who can structure the deal and shop it around to multiple lenders.


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## james4beach (Nov 15, 2012)

Jettam said:


> Length of Canadian credit history - only been here 1 year but do have an excellent US credit score.


I've hopped around between these two countries myself. The credit bureaus are separate, but credit history MAY be visible between the two of them.

I used to think they were separate, but when writing this, I was curious. I created a US myEquifax account and used that to grab my free US credit report (was pretty easy, through myEquifax). In there, I can see that my Canadian apartment manager has required my US credit history. It shows that "EQUIFAX CANADA" made a credit inquiry to US Equifax.

This surprised me! Seems like good news for you. The Canadian lender might be able to check your US history, as my landlord did.

I also suggest printing out details of your US history (you can use myEquifax as written above, or www.annualcreditreport.com) and bringing that when you apply as well.


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## Money172375 (Jun 29, 2018)

We had the ability to pull US credit bureaus when I was lending.


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## Jettam (Feb 21, 2021)

Money172375 said:


> If you haven’t already, I’d start gathering T1 General tax returns for you and your wife. And corresponding NOAs. Also gather 2-3 years worth of US tax returns and two Most recent bank/investment statements from Canada and US. Copies of employment contracts.
> 
> is your wife employed too?


I have provided all these documents to the lender, and they gave an unofficial approval with a rate and amount they would be willing to loan. But just in the last few days they came back to me and wanted to see my offer of work contract which states that I only have 4 months left. Now I am very nervous that this might seriously affect the terms of the unofficial approval or maybe they will renege on the loan completley.


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## Jettam (Feb 21, 2021)

Money172375 said:


> There are policies for new Canadians and high net worth borrowers that should meet your needs. I’d work with a non-bank broker who can structure the deal and shop it around to multiple lenders.


I am unfamiliar with a "Non Bank Broker" could you recommend a few for me to investigate?


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## Money172375 (Jun 29, 2018)

Jettam said:


> I am unfamiliar with a "Non Bank Broker" could you recommend a few for me to investigate?


Butler, trueNorth and Dominion Leninding spring to mind. (No affiliation with any). I’m in Ontario. Just Google mortgage broker and look for reviews. They will send the application to multiple lenders to try and get you an approval.


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## Mortgage u/w (Feb 6, 2014)

All banks and lenders have a New To Canada program which is backed by all three mortgage insurers. Criteria is to be either a permanent or non-permanent resident, have a limited or no credit history, recent employment.

You seem to fit these criteria's. If your bank is not offering the program, then seek a mortgage broker as advised by others. Just google one in your area or ask for recommendations on social media.


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