# How much can I borrow



## ali79uk (Feb 16, 2015)

Hello

I had a question about Loan to Value and also how my average earnings would be determined.

I am a share day trader and have recently completed my first year of trading.

I am grossing approximately $120k per annum.

Based on this, how much could I get as a mortgage, and what LTV % could be on offer.

Help appreciated.

Kind Regards


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## Just a Guy (Mar 27, 2012)

How long is your work history? What is your reported income? Are you self employed? What is your credit rating? What are you looking to purchase a home or an investment? Do you have a downpayments? What are your other debts and obligations?

These are just a few of the other factors which affect your initial inquiry...


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## ali79uk (Feb 16, 2015)

Hi thanks for that,

Ok I will try to answer all I can.
1) I have been full time employed since Jan-2001 until last summer when I decided to day trade shares full time.
2) My reported income on my Tax forms is $120,000 so after tax I have approximately $82,000 net.
3) I am self employed (though am not incorporated).
4) I dont really have a credit rating as I will be new to Canada (am moving in August 2015).
5) I am looking to purchase a home to live in. Initially looking to buy something circa $350,000
6) I have a down payment but wanted to know the maximum loan to value I could get.
7) I have no other debts and do not have credit cards etc.

Regards


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## birdman (Feb 12, 2013)

Talk to a financial institution. When I was in the business some time ago the general guideline were:
2 yrs continues employment
good credit bureau
25% down payment
Maximum GDSR (gross debt service ratio) 40%
Mtge pymt can't exceed 30% of gross income

These have probably tightened up a bit over the past few years but the above could serve as a start. You can also get CMHC insured mortgages but then have to pay an insurance fee and the the loan to value ratio could go higher-say to 90%. It all a bit more involved but this could perhaps serve as a start.


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## marina628 (Dec 14, 2010)

I have a friend who moved to Canada from Israel about 4 years ago ,they signed up with rbc so had some newcomer service and they were able to buy a home the first year they arrive with 20% down.


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## sags (May 15, 2010)

I doubt you would qualify for any mortgage with no credit history and employment as a self employed day trader.


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