TOP 5 REASONS WHY YOU CAN'T GET A MORTGAGE
1) Low Credit.
2) Not enough down payment.
3) High debt ratios.
4) Property overvalued or in poor condition.
5) Wrong bank!
Low credit: Each bank has their norms. The banks will not just look at the score but will do their own analysis of your overall profile.
Not enough down payment: With the new mortgage rules that came into effect October 17th, 2016 , more people will have a harder time qualifying for their first home.
High debt ratios: If you have too much credit card debt or big car payments , your debt ratios might be too high. Depending on your credit rating you cannot exceed 32 % for GDS and 44% for TDS.
Property overvalued or in poor condition: Banks will send evaluators to assess the property. If they deem that the property needs a lot of repairs or in poor condition, they will lower the value.
Wrong bank: Sometimes applying at your bank or the bank that you like , you may not qualify because you don't fit their criteria's. That is why working with a mortgage broker (FREE service btw) is the smartest solution!
Contact me for more information!
Kim Lee | 514.638.4828 | www.kimlee.hypotheca.ca