liquidsuite

Hi I am in process of looking for house but having few problems right now. My bank have only approved me for around 285k based on a 5 percent down. They said if I pay 10 percent they will approve me more. One of my friends and his wife both also earning same as me and my wife and their bank said no first but after they gave 10 percent they got approved for a 330 house they bought just a month ago.

I am thinking maybe with 10 down I will get approved the same but not 100 percent sure on that until I meet the bank next week.

Before that I am just wondering if I got to a private company could I have better luck with getting approved with 5 percent down?

I live in brampton so any recommendations for mortage companies I should go speak with.

Also If bank does a credit check and I also allow another private company do a credit check does it effect my credit rating. I heard somewhere that if you do to many credit checks same time then it can have a bad effect on your rating. Not sure if thats true or not. Can anyone clear that up for me also. Thanks

el_richo

I'll loan you the money at 18% fixed with 7% down.

PM me

Siouxie

Wes at www.wespauls.com was of immense help to my son and I when we were seeking a mortgage last year. He got us one at a good interest rate even though I had no credit history and my son had lowish earnings.

Give him a call or send him an email (wes@ company website above) and I am sure he will be able to offer advice.

jericho

Not sure what you mean by private lender, but your best bet is to speak to a mortgage broker. They'll be able to tell you what deals are available and with which bank.

The more credit checks you have, the more it will effect your score. 1 or 2 is generally OK, but four or five within a few weeks can make a bit of a dent.

Al the Agent

Jericho is correct, a couple of credit checks probably won't present a problem, but anymore will. A private lender will typically offer you more flexibility with regards to percentage down etc. but that usually comes with higher interest rates.

ultrarunner

This might be crazy talk.....if the bank is not willing to lend you more based on your joint income, then there is a good reason for that. Well of course the more you put down, the more you might be pre-approved for.

You still have to think of property tax and the other bills. If you put 10% down, then you don't need CMHC insurance here in Ontario, andything less and it applies.

Why not just start of with a townhome, build equity and go bigger next time? I can assure you that if that 330k house is brand new, they you can add another 20k plus to other things that needs to be done immediately after like A/C, deck, fence etc

Al the Agent

No CHMC insurance on 10% in Ontario...thought it was anything over 20% nationwide.

Auld Yin

:Quote. You still have to think of property tax and the other bills. If you put 10% down, then you don't need CMHC insurance here in Ontario, andything less and it applies.

I believe one must deposit minimum 20% to avoid having to purchase CMHC insurance across the country. I could be wrong though.

ultrarunner

You are right, correction...it is indeed 20% to not need CMHC. Well of course more DP is always good if you have it, keeps the payment down

http://www.cmhc-schl.gc.ca/en/corp/faq/faq_006.cfm

liquidsuite

Thanks for advice so far. Well right in process of getting some extra funds freed up overseas but will be around 6 months. Maybe will have around 30-40k to put down payment at that time with 10k saved extra for any additional cost that creep up.

The houses around me which are what I am looking for are going around 375-400k So if go with bank they will need me to put a lot down to get approved maybe I am not sure. I meet bank on Thursday so maybe will have better idea after. I hope with 10 percent down I can go for it. If they ask for more its gonna be to tough I think. Maybe they might ask for 15percent or more.

el_richo

I'm surprised. In Vancouver they seem more than happy to lend people mortgages they can't really afford

Good luck

Joolschweetie

Sadly it is 20% to avoid the insurance...we have recently been advised this. Do try a few mortgage brokers though, we have spoken to 3 people now who have given us different perspectives.

Broker no 1 (PC financial) - Oh so you're foreign....(me) and you're a salesman with 50% commission-based wage (OH)...err, I see *pulls secret trapdoor lever*

Broker no 2 - And you still have the house in the UK you say...*presses panic button under desk repeatedly*, perhaps come and see me in 3 years...

Broker no 3 (TD) - 20% deposit + 6 month wage slips = no problems

Probably for the best though, rather them be cautious than lend tons of money to people who can't afford it. It does rather feel like they're reluctant to take our money though. How novel.

jericho

Dont confuse mortgage brokers with mortgage lenders. The 3 you listed above are all lenders, not brokers. There is absolutely no need to go to more than 1 mortgage broker- by doing so, you'll only hurt your credit rating.

ultrarunner

That is true.... especially the comment about the credit rating