Prepping for Your Mortgage Meeting
Prepping for your mortgage broker meeting requires a little knowledge and a few documents. Understanding what it takes to get approved is very important.
You will want to review a few areas to make sure you are ready.
1. Employment – You will need to come prepared with a current letter of employment, 2 pay stubs and your last 2 years T4’s and Notice of Assessment from CRA.
2. Credit – Reviewing your own credit from either Equifax or Trans Union of Canada to make sure your credit score is within industry requirements.
3. Down Payment – make sure you have the latest 3 months bank statements showing the accumulation of your funds. They must have your name and account number on the statements to show it belongs to you.
For a detailed list of mortgage documents, check here: https://www.mortgagetailors.com/step-1-mortgage-documents/
Bringing income documents upfront verifies what income can be used to meet the lending qualification guidelines. Based on your credit score, if you’re credit is above 680, your Gross Debt Service can be 39 and your Total Debt Service can be 44.
Reviewing your credit bureau prior to our meeting ensures you’re able to get approved. You may find surprises on your credit report such as unpaid collections. These can be taken care of prior to your pre-approval appointment. You can obtain your credit report from either Equifax or Trans Union.
Qualifying using the Stress test is designed to ensure that if interest rates increase Canadians can still afford their mortgage payments. Currently the Stress test is 4.79% however effective June 1, 2021, it will be changing to contract + 2% or 5.25% whichever is higher.
This change will again reduce consumers buying power.
If you would like to discuss the option of buying a home, let Mortgage Tailors guide you through the process. We strive to make the home buying experience stress free. Use my 21 years experience to help you get everything in place to get approved!