Region served
On a tight budget in Capitale-Nationale, 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 each month are rarely the same number. Decide the second one first. Taxes, insurance and heating come on top of the mortgage every month.
Your offer needs room for the lender’s review, mortgage insurance, the appraisal, and the documents that always turn up missing.
The lender is approving a property, not only you. Condition, intended use, anything raised at the inspection or in the title records can kill a file that worked on paper.
The down payment isn’t the only cash you need: notary fees, tax adjustments and transfer duty come too. The welcome tax bill lands months after you buy, when the moving truck and the new couch have already drained the account.
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.