If there's one thing our team of mortgage planners has learned from their years of experience, it's that no two mortgages are the same. Even if, on the surface, you think that your situation matches your neighbor, friend, co-worker or parent, it doesn't take much digging to start finding differences. Since you're not "just like Dave" why would your financing be the same? We believe that your mortgage solution should be as unique as you.
Here are 20 factors you might not immediately think of that may affect your mortgage approval:
If you're self-employed, many lenders will treat your income differently than a borrower who works for a company. You may need to provide additional documentation in order to get the best possible deal.
2) New employment
If you've recently changed jobs – even within the same field – it can affect your eligibility for a mortgage. In cases where you or your co-applicant is still on employment probation, you may need a different approach with a lender.
3) Rental Income
Different lenders have different ways of considering rental income if you're using it to support your application. Rather than trying to decipher the best solution on your own, why not leave that work to the pros?
4) Reduced Income
If you're retired, on leave, self-employed, were laid off for part of the year, or otherwise have a lower income than in the past, it can be challenging to find the right fit for your situation. There are still many lenders that will consider your file, but it can take more work to find them.
5) Unfiled Income Tax
If you're behind on your taxes or owe money to CRA, it can be more difficult to review your application. We have access to short-term financing solutions in specific situations to help ensure your deal can be completed.
6) Current Debt
If you are currently carrying high amounts of debt, the additional payments of a mortgage may seem daunting. Your mortgage is just one piece of your complete financial puzzle – our planners can help find the right structure and schedule for you.
7) Credit History
If you have a history of bruised or bad credit, you might feel like home ownership is beyond your reach. This isn't true and there is a solution for you!
8) Residency/Citizenship status
Not all lenders will accept a Work Permit or 9-SIN from a mortgage applicant. We know which lenders have new resident programs or can make exceptions, depending on where you are in the residency process.
9) Unfinalized Spousal Separation
Splitting up can be difficult, and splitting up your assets can be even more so. If you're searching for a new property before your separation is finalized, you may need to provide additional documentation; a lender may also ask for your separation agreement as a condition of providing your mortgage.
10) Source of Down Payment
Whether your down payment comes from savings, investments, or a gift, a lender will usually ask for a 90-day history showing the source of those funds. Note that erratic or unusually large deposits will likely trigger questions from the lender. Also, just because you have 20% down doesn't necessarily make your deal easier.
11) Number of Properties Already Owned
If you're building a portfolio of rental properties, that's great – but unfortunately the more you own, the harder it gets to own more!
12) Microcondos and Tiny Homes
Microcondo developments are popular right now, but many lenders don't consider them for mortgages. We've learned which lenders are willing to consider these unique properties for funding.
13) Property Zoning
Work-Live properties are growing in urban centers, and with in-fill construction some properties may end up in areas zoned for hotel or other non-traditional residential use. Any time your property is non-traditional, the lender will have more questions for you.
14) Business Tied to the Property
Do you need to have a specific type of property for your work? For example, if your primary income depends on having an accessible house for home care, or a workshop for crafting your products, it can affect which lenders are willing to consider your mortgage.
15) Livestock or Agricultural Activities
If you have livestock or there is farming activity occurring on your property, only certain lenders will consider it for a mortgage.
16) Rural Property
Most lenders have guidelines about how far a property can be located from an urban centre, as well as rules around detached structures and outbuildings. If you're considering the country life, you'll also have to think about adding a bit more time for your mortgage process.
17) Leisure Property
Cabins, cottages and other properties that are usually recreational can require extra documentation – even if it's going to be your primary residence!
18) Property Issues
If your property has an existing or previous oil tank, contains or may have contained asbestos, or has something else quirky about it, you'll need to provide more documentation about the issue and property. Additionally, not all lenders will consider these properties.
19) Strata Issues
Whether it's a legal matter (e.g., a pending lawsuit either brought by or against the strata) or an upcoming large capital expense, a lender may need more details about the situation.
20) Insurability of the Property
As a condition of your mortgage, you will need to arrange for home insurance with the loss payable to your lender. Once again, factors such as oil tanks, asbestos, unauthorized accommodation, and more can impact the process of getting insurance. Your insurance provider can assist you with this.
Our team's expertise is maximizing your satisfaction while minimizing surprises that can crop up from factors like the ones outlined here. If you're ready to find your mortgage solution, contact us today to set up an appointment with one of our planners: call Toll-Free 1-855-590-6520 or visit us at 307 Goldstream Avenue during regular business hours, Monday through Friday 8:30 a.m. – 5:00 p.m. We can also arrange an appointment evenings or weekends to work with you.
Originally posted May 2017; updated September 2021.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.