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 and price
Your offer is only as good as the appraisal. Where few comparable sales exist in Grand Montréal, the appraiser can come in under the price you agreed to, and you cover the difference in cash. It does not get added to the mortgage.
Income and down payment in Grand Montréal
The lender wants to see enough to work out your monthly budget: proof of income, the source of the down payment, your debts and what is left after the bills. Have them ready before the first call about a Grand Montréal file.
Conditions compared
Rate is the easy comparison. On a purchase, two offers differ mostly in the penalty to break the term, in how much you can prepay each year and in whether the mortgage moves with you to the next home.
Documents before submission
A complete file the first time avoids the back-and-forth that adds weeks. It is almost never the analysis that drags on a Grand Montréal file. Somebody is waiting on an employer, a bank or an appraiser.
To prepare
What to gather.
Financing goal
Income records
Current debts
Property or security
Required timing
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.
