Lenders look at your ratios once the debts are cleared, not the current ones. A tax debt is worse than a credit card balance. Revenu Québec and the CRA can put a claim on the property, so most lenders insist it be paid from the refinance.
Documents to have ready
Every debt listed with its exact balance and payment, the latest mortgage statements, the notices of assessment. For tax debt, ask for the official statement of account. Nothing else counts with a lender.
Property use
What you plan to do with the property counts for more than its price. Live in it, rent it, or both: that changes the down payment required and which lenders can take on a La Prairie file.
Property records in La Prairie
Depending on the property, the file in La Prairie may need leases, tax bills, a location certificate, the condominium declaration, contractor quotes or proof of compliance.
Appraisal and comparables
The appraiser works from recent sales, not the asking price. Where there aren’t many comparables (a rural area, an unusual property), the value used can land under the price you agreed to, and you pay the difference in cash.
Complete property budget
Municipal and school taxes change from one municipality to the next, and they count in your ratios. Put the La Prairie tax bill, heating, insurance and upkeep in your budget next to the payment. The lender does. You should too.
To prepare
What to gather.
Property condition
Required repairs
Appraisal and comparables
Insurance availability
Municipal records
Lender property rules
Frequently asked
Can the file be reviewed remotely?+
Yes. Phone, email or video call, with documents sent online. We can meet in person if you’d rather, but most files get done without anyone driving anywhere.
Should I pay off my debts before applying?+
Often yes, but not always with your cash. Paying down a card improves your ratios. Emptying your account to do it weakens the down payment. You have to run the numbers on both at once.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
