Region served
On a tight budget in Estrie, closing costs and the reserve several lenders want left after the transaction count as much as the down payment.
Borrowing capacity rests on two ratios: what the housing costs against your income, and what all your debts weigh together. In a condo, the condo fees go into the calculation and cut your capacity more than most buyers expect.
Two years of notices of assessment, recent pay stubs, an employment letter and three months of statements for the down payment. For a condo, add the declaration of co-ownership, the syndicate’s budget and the state of the contingency fund. An underfunded one worries the lender as much as it should worry you.
What a lender approves and what you can comfortably pay are rarely the same number. Settle on the second one first: in Estrie, taxes, insurance and heating come on top of the mortgage every month.
Count the timeline backwards from the signing date: lender review, mortgage insurance if it applies, the appraisal, and then the documents that will always be missing. A financing condition that is too short costs you an extension to ask the seller for, in Estrie as anywhere.
The lender approves the property as much as the borrower. Condition, intended use, anything the inspection or the title flags: any of it can stall a Estrie file that looked settled on the numbers alone.
On top of the down payment: notary fees, tax adjustments and transfer duty. In Estrie the welcome tax often shows up months after the purchase, when the move and the furniture have already drained the account. That is exactly why people forget it.
To prepare
Yes. It all runs by phone, email or video call, and documents go through online. We can meet in person, but most files get settled without anyone having to travel.
5% on the first $500,000, then 10% on the portion above. Under 20%, mortgage insurance is added to the loan. In a condo, the condo fees also count in your ratios.
Pick the situation closest to yours.
Contact
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.