Bank pre approved me for an amount that I might not be able to afford?
Here's the deal, back in June I went to scotia and got pre-approved for a mortgage of $311k + down payment. I'm not sure what method they used to figure out what I could afford, because now I'm interested in a property that's just at my limit and a mortgage broker that works with my realtor is telling me that the max I can afford including 10% down is 295-300k. This is a huge discrepancy and the recent rate increase isn't enough to account for the difference. I didn't bother doing a detailed breakdown of monthly costs before because I figured the bank + new rules would ensure that I could afford it, but now I am starting to get worried.
My take home pay can vary a lot but is usually around 3900 a month. My expenses over the last year have averaged to 1305 a month (student loan, auto insurance, food, fuel etc). With the current rates/ impending future rates, do you guys think I should even try to take out a mortgage of around 300k? Also what would be the carrying costs of an old old detached house, about 1000sqft?
Another kicker is that I'm a full time temporary employee with no end date and it will be only 1 year of employment at end of september so I'm not sure if anyone other than scotia will even give me a mortgage. Could the bank have screwed up and given me a pre-approval for an amount that actually wouldn't go through when I submit the real paperwork?
My take home pay can vary a lot but is usually around 3900 a month. My expenses over the last year have averaged to 1305 a month (student loan, auto insurance, food, fuel etc). With the current rates/ impending future rates, do you guys think I should even try to take out a mortgage of around 300k? Also what would be the carrying costs of an old old detached house, about 1000sqft?
Another kicker is that I'm a full time temporary employee with no end date and it will be only 1 year of employment at end of september so I'm not sure if anyone other than scotia will even give me a mortgage. Could the bank have screwed up and given me a pre-approval for an amount that actually wouldn't go through when I submit the real paperwork?