No matter if you are a first-time homebuyer or it has been a while since you purchased your current home, you may be wondering what all goes into qualifying for a mortgage in Ontario. We can’t lie: there’s a lot that goes into it. Yet, we can easily break these down into a few simple steps. Having a trusted and dependable team of real estate experts in Ontario can make this process go swimmingly, so have no fear as you go forward. Below are the basics of qualifying for a home mortgage.


Not only that, but income that a lender can bank on (no pun intended). As you attempt to qualify for a mortgage in Ontario, a lender needs to know that you have enough of a steady flow of cash coming in every month and that you will have that job for the foreseeable future. This is weighed against your current debt (e.g. credit cards, loans, child support, alimony, etc.), financial obligations such as bills, and so on. For the self-employed or those that work seasonally, it’s a good idea to show proof of payment received for at least a few years to prove that you have income stability.


Good credit history

Lenders also need to know that you are reliable at paying back debt on time, every time. If you’ve never missed a payment and have one or more years of credit history, you shouldn’t have anything to worry about. If you’ve missed payments and have had difficulties paying back your debts, you must fix your credit. Speak to a lender to know what must be done to get on track. If you want to start today? Make it a habit to pay at least your minimum on time every month, but attempt to pay more than the minimum due every month. If you wipe out even a small portion of credit card debt without being late for a year you may be able to avoid paying a large down payment (in some cases, this could be 25% or more).

Appropriate down payment /equity

The saying goes that you can’t get, ‘something for nothing,’ and this is true of qualifying for a mortgage in Ontario. Lenders want to know how much you’re able to ‘give up,’ in order to buy the home in question. Moreover, they also want to know where the money comes from and that it will be sitting in your bank account. The bigger the down payment (or equity if you already own a home and prefer to go this route) you can apply at closing, the less risk you are to the lender.


Your history

Do you have a history of switching jobs or moving a lot? Are you dependable with paying back your debts? These are just a few of the questions lenders consider when qualifying for a mortgage in Ontario. Character plays a big role in deciding who qualifies and who does not; potential homebuyers that have a history of financial negligence will have a hard time qualifying without a bigger down payment. But if you’ve been serious about buying a home for a long time and you’ve put in the work with saving for a down payment, improving your credit, and have regular, proven income that is going to be around beyond the near future your history is going to be the least of your worries.

Let’s talk.  Reach out to Diane Bertolin today, and let’s put you in that new home you adore. Call now, and learn what we can do for you.