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  • Dec 9th, 2005 3:22 pm
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[OP]
Newbie
Apr 21, 2005
4 posts

Mortgage situation

One of my relations has big house plans and I was just wondering if they are realistic given their situation (but I can't comment on it since it ruffles feathers) - mainly what their chance of getting a mortgage is if (a) only one person in the relationship is currently employed in a job which has always been on a contract basis and has lasted only 6 months max with no real confirmation of rehire, just luck mainly. They have worked for the past 6 months but spent the last year before that unemployed and getting EI. There is no real employment history - just the pattern of getting hired for 6 months then unemployed for 6 months to a year etc. The partner is likely going to get a job offer but not until spring which is the time they plan to build their own house in an area with a low cost of living (and little employment), so the mortgage would not be extremely big, and they would likely have about 5% to put toward it. They believe they will have no trouble getting a mortgage - is this the case? How will the banks look at this? Opinions?
8 replies
Deal Expert
Aug 2, 2001
16014 posts
6196 upvotes
When I applied for my mortgage I had to give them my employment history - apparently they said they were looking for 2 consecutive years of employment.

There are ways around this for self-employed people, however the people in this situation do not meet this criteria.

They may be able to find a third party lender, however the interest rate would be much higher.
Deal Fanatic
Oct 25, 2002
6849 posts
4 upvotes
TrevorK wrote:There are ways around this for self-employed people, however the people in this situation do not meet this criteria.
Most would require proof of the last 3 years of earnings if self employed unless the downpayment exceeds 40%.
Newbie
Oct 20, 2004
30 posts
2 upvotes
The answer to your question will be totally dependant on their credit history.
I am a mortgage broker, and deal with things like this all the time.
There is a program that allows you to buy with 5% down, and they go by "Stated Income", that is whatever you say you make, no need to prove. But for that you need to be self employed and have excellent credit history.
Sr. Member
Nov 22, 2005
544 posts
GTA
I think the biggest barrier will be their plans to build, a builders mortgage is much more difficult to get, apparently.
Deal Addict
Nov 29, 2005
1191 posts
22 upvotes
You can get a "no income qualifier" mortgage, if their credit is great they will find someone to give them a mortgage.
Banned
User avatar
Dec 24, 2004
10708 posts
151 upvotes
try these resources



www.canadamortgage.com
www.mortgagehome.ca
www.6717000.com
www.realty-vancouver.com
www.penthouseking.com



what the other guy said is correct too. If your credit is good, you can get a 5% down mortgage by simply swearing a letter in which you state what your income is(but no proof required)

if your credit is so-so, then you can get a 25% down mortgage with stated income.
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Deal Addict
Aug 24, 2002
3569 posts
34 upvotes
Sask
Taylor78 wrote:They believe they will have no trouble getting a mortgage - is this the case? How will the banks look at this? Opinions?
Based on your description there's very little chance. Unless there's some other factors:
- the 6 month casual job pays an extremely high amount (oil rigger, Iraq trucker, etc)
- they have some assignable asset or security worth as much the mortgage
- some kind of unconventional arrangement

Above all else, lenders look ultimately at the borrow's predictable ability to repay.
Deal Fanatic
User avatar
Aug 19, 2001
5089 posts
34 upvotes
Vancouver
Shifty wrote:I think the biggest barrier will be their plans to build, a builders mortgage is much more difficult to get, apparently.
Yes aside from that they can get a mortgage easily... assuming their credit is clean.

But why ask here? Go talk to a mortgage broker, they are experts at these questions.

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