Two ratios set how much you can borrow: what housing costs relative to income, and what all your debts add up to. With a condo, monthly fees count too. They shave off more capacity than people think.
Papers to gather first
Bring two years of notices of assessment, recent pay stubs, an employment letter and three months of statements showing the down payment. Buying a condo? Add the declaration of co-ownership, the syndicate’s budget and the contingency fund status. An underfunded one should worry you as much as it worries the lender.
Property use
What you plan to do with the property weighs more than its price. Living in it, renting it out or a bit of both changes the down payment required and which lenders will look at a Grand Montréal file.
Property records in Grand Montréal
The paperwork depends on the property: leases and the tax bill for a revenue building, the declaration of co-ownership for a condo, a location certificate every time. If there is work involved, add the quotes and proof of compliance. Ask early, it varies in Grand Montréal.
Appraisal and comparables
The appraiser works from recent sales, not from the asking price. Where comparables are thin (a rural sector, an unusual property), the value can land under what you agreed to pay, and you make up the gap in cash.
Complete property budget
Municipal and school taxes vary from one municipality to the next, and they count in your ratios. The lender works from the Grand Montréal tax bill, plus heating, insurance and upkeep. Do the same math before it does.
To prepare
What to gather.
Property use
Building type
Appraisal and comparables
Income or leases
Down payment or equity
Eligible lenders
Frequently asked
Can the file be reviewed remotely?+
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.
What down payment is needed for a first purchase?+
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.
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.
