Buying a home with challenging credit

Aside

Fear Of Debt ChallengeBuying a home with challenging credit, may lead to stress, then stress may lead to uncertainty which may lead to fear.

A person or cou[le buying a home with challenging credit should not have to face uncertainty nor fear, however, this may be a traditional mistake and very understandable by those living in the situation at the time, buying a home is not like buying a pair of shoes, after all; The financial commitment is a lot greater and is also risky.

Let’s think for a moment that this is the thought of a couple recently married couple that is currently renting an apartment, both working regular jobs, paying their monthly bills, saving what they can, but have had some challenging times and the credit is not so well, now, imagine that they start thinking about buying a condo or a townhome just to stop paying rent that ends in NO home-ownership, then to think about a mortgage, a property tax bill, property insurance etc. Adding to that knowing that the credit is not so well at the moment, the reason for feeling overwhelming is available right there and easy to grab as a valid excuse to give p on a dream, maybe without realizing that continue renting is just building someone else’s dream.The idea that maybe later the time will get better also comes available as the plan that brings comfort to the mind.

I wish that this message could reach to all those in this situation: Buying a home with challenging credit should not be stressful neither it should be postdated, they don’t have to do it alone, they do need to call and get all done for them and actually they don’t even have to know exactly what to do next after placing the call, everything will actually get done for them and the best of all, it is all free.

We are proud to work together with some lenders that understand this specific scenario and are willing to share the risk that this type of business represents by helping applicants get to the moment of being homeowners

If you are reading this and you are in this or similar situation, just call 416-262-7139 now and let’s get it done, continue building up your homeownership dream, and let the regrets rest only on NOT calling.

If you are NOT in this or a similar situation but know of someone who is or are, click here, this content on this page might interest you and you’ll be helping them.

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Stop renting this year

Rent or home ownership

It may be the difficulty of moving out of a comfort zone the reason why many people are still renting, and by comfort zone I don’t mean a geographic zone, but a mind set zone.

There is without question a great deal of people that are committed to paying the same amount of money as a rent for their home or apartment that has been sheltering them for a long while, exposed to rent increases out of their control, leaving in smaller unit, owning zero of that property and yet not making an attempt to own their own home.

The amount of rent coming out of their paycheck is about the same as what a mortgage payment would be since we still have this all time low interest rates that by the way may increase during this year

There are a great deal of benefits when purchasing a home such as wealth building, through home equity, cheaper borrowing, government incentives for first time home buyers, living in comfort and financial discipline

The obligation is however, to help those with the interest in learning the way to home ownership, so that the time of renting becomes a chapter in a book of history and not a concern for the future.

As we live in a complex society, obstacles to home ownership are develop by us, when we choose our lives style and the way we conduct ourselves, the way we manage our wealth by the way we prioritize our needs.

However, there will always be factors that can discourage or strengthen our will to own or not to own our home. but obstacles can be removed from the way clearing the path to home ownership that in most cases is a good life changing event. Factors like low credit score, no down payment savings or others can be removed from the way.

These obstacles can be clear with a set of good advices from your mortgage agent, the help of mortgage lenders and the resolute will of the home buyer starting by calling to arrange a simple and short mortgage assessment. If the will to home ownership is in your mind, delaying to call now may result in giving way to another year of renting whether you are an employed or self employed.

Call today and request your free mortgage assessment

Home sale prices in Ontario

Home sale prices in Ontario

Is it really worth it to buy a house? That is a question that some renters that I have come across with have or had, like John and Sue (not real names) from Toronto, who were renting because they never thought that they could buy a house considering their financial situation. After our first meeting at that corner coffee shop (it was very crowded by the way), they felt comfortable enough to take the next step

The next step was, to decide whether to start their mortgage assessment or not, they decided to go ahead as they had nothing to lose and now they own a condo on a 15th floor that is more comfortable than the apartment they were renting and in a safer area; their mortgage payments are currently lower than what they were paying as rent.

The following chart from CHMC, illustrates in a simple way the average home sale prices in Ontario, includes a forecast for the years 2013 & 2014.

What you as a borrower can take from this is that, those who in the past years, were able to invest in a real estate and capable of keeping their investment, have now benefited by the growth of their equity, even through the slow economy that we lived in the past few years.

In the graph, as we observe a steady increase in home sale prices, we should also consider the savings resulting from low mortgage rates (not expressed in the chart below).

The growth of wealth in equity offered by the residential real estate industry, should be considered as a clear message, and an invitation to those who are currently renting, to invest securely and buy their homes now, rather than later.

Situations that prevent renters from buying a home like, low credit, no initial down payment, low income and others can be overcomed with a clear and solid strategy and here is where I can help you.

Home Sale Prices in Ontario

Source CHMC

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 Contact your mortgage agent

Non owner occupied rental mortgage

Non Owner Occupied Rental

The non owner occupied rental mortgage loans help you qualify by adding the monthly rental income to your current income. As a result you are able to purchase or refinance a rented property and let the property pay for itself with the rent

Scenario: You currently have a steady job or business, a decent credit score, some savings but no time to start another business or job, and you would like to earn residual income from a real estate property.

The non-owner occupied rental mortgage is designed for those who would like to become real estate investors.

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New To Canada Mortgage

 

New To CanadaNew to Canada Mortgage is for people who have immigrated or relocated to Canada within 60 months, offers credit record or history flexibility, lower down payment required than a conventional mortgage.

The New to Canada  mortgage is for the new immigrants that have obtained landed status and have not already owned a house It presents the opportunity to start owning a home instead of renting.

The following are some borrower qualifications for the New to Canada Mortgage:

  • High ratio secured mortgage loans with only 5% Down payment from own resources; For LTV’s less than 95%, the remainder may be gifted from an immediate family member or from a corporate subsidy. (3 years landed immigrant)
  • Or Conventional unsecured mortgage loan with 35% Down payment or more from own resources.
  • Amortization up to 30 years in Conventional & 25 years insured mortgages
  • No 3rd party/Guarantors

  • Number of units, Max 2

  • Must provide valid work permit or verification of landed immigrant status

  • International Credit Report or 2 alternative sources of credit

  • Bank reference letter or 6 months bank statements
  • 3 months minimum full-time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
  • All debts held outside of the country must be included in the total debt servicing ratio (Rental income earned outside of Canada is to be excluded from the GDS/TDS calculation)
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Family Plan Mortgage

Family Plan MortgageFamily plan mortgage is a mortgage loan that allows an immediate family member to assist financially another immediate family member in the purchase of a new home

Family plan mortgage is one of the insured, owner-occupied mortgage loans, good credit rating is necessary and both members of the family must be included in the property title.

Family plan mortgage is great for the following examples:

  • A parent who wishes to help an adult entrepreneurial child buy a home

  • A parent helping to buy a home for an adult child at a post-secondary educational facility

  • An adult helping to buy a home for elderly parents who are living on a fixed income

Insured Mortgage Facts:

  • 2+ members of the family purchasing a home

  • All applicants must be on title

  • For immediate family members

Eligible properties:

  • Number of units: Max 2 – at least one should be owner occupied

  • Good conditions property in marketable area in municipality with resale value stability

  • New constructions or existing properties

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Cash Back Mortgage

Cadh Back MortgageCash back mortgage is a convenient mortgage loan use to purchase a home and get additional financing for other purposes at low mortgage rates, that are generally lower than the rates on the credit cards

Different percentages of cash back (1%, 2%, 3%, 4%, 5%) are offered by different lenders, some mortgage lenders allow you to use your cash back to purchase new furniture for your new home, home remodeling or restorations, some for legal fees and some even for down payment.

With a cash back mortgage, you extend the repayments through your mortgage amortization period making it easy to repay

Cash-Back MortgageIn a cash back mortgage, the mortgage rates may not be as low as in a conventional mortgage where at least a 20% of the purchase price of the property has to be invested upfront by the borrower, however, the rates are much lower than other financing channels like credit cards or personal loans.

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Zero down payment mortgage

Zero down paymentZero down payment mortgage is a Mortgage loan offered by only some lenders that offer a 5% cash back, that can be used towards the down payment.

It helps realize the dream of home ownership even before the down payment has been saved.

If you are currently renting and prefer to own your own home, but you haven’t been able to save enough for your down payment, this is your chance call now

To qualify for a Zero down payment mortgage you to have good credit (read below), a steady source of income that can show your capacity to repay the loan, (we’ll do the math together) and savings of about a 1.5% of the value of the property that you are seeking to purchase

These mortgage loans are not available for borrowers that:

  • Are prior bankrupts, consumer proposals, collections or repossession
  • Have high credit cards or other consumer loan debt with no assets and no evidence that they can save
  • Have no assets to show for the length of their working career

 Visit also low credit score mortgage 

* Subject to availability

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