Real Estate

Can a large down payment make up for low income?

  • Last Updated:
  • Jul 15th, 2020 11:42 pm
[OP]
Member
Jun 22, 2009
309 posts
187 upvotes
Toronto

Can a large down payment make up for low income?

On a house worth $1.75M and down payment of $1M (approx 57%) would I be able to get a mortgage with income of about $115k and credit score in low 700s? No other debt currently.

If major lenders won't lend to me what kind of rates am I looking at and what options do I have?
9 replies
Deal Guru
User avatar
Mar 23, 2008
13006 posts
9962 upvotes
Edmonton
Desii wrote: On a house worth $1.75M and down payment of $1M (approx 57%) would I be able to get a mortgage with income of about $115k and credit score in low 700s? No other debt currently.

If major lenders won't lend to me what kind of rates am I looking at and what options do I have?
My advice is to get real details by talking to a mortgage broker.

C
Deal Addict
Jul 2, 2006
1578 posts
830 upvotes
Toronto
Based on the various calculators out there your income will not allow you to take out a principal of about $750,000 as this grossly exceeds the GDS and TDS ratios at ~41%. Your situation is similar to someone that has $100k down looking to purchase a property worth $850k. Best of luck!
Deal Expert
Feb 29, 2008
19122 posts
17465 upvotes
Tarrana & The Ri…
It's still a $750K mortgage on a 115K income. Just over 6.5X income. I'd say not a chance but talk to a broker. Downpayment means nothing. The lender is only interested in the amount they are lending and whether the borrower can afford to pay it back. Based on the calculations no...but maybe there are some options for you.
Deal Addict
Jul 3, 2007
4057 posts
4538 upvotes
Toronto
Desii wrote: On a house worth $1.75M and down payment of $1M (approx 57%) would I be able to get a mortgage with income of about $115k and credit score in low 700s? No other debt currently.

If major lenders won't lend to me what kind of rates am I looking at and what options do I have?
extended ratios lenders are about 3.6%
Newbie
Jul 11, 2016
37 posts
6 upvotes
Brampton
Yes, You can be approved there are lenders out there and programs which can help you in securing finance. You can pm me and I can help you,
Sr. Member
Nov 22, 2017
933 posts
685 upvotes
I believe you can still go with a B lender or even some credit unions that are provincially regulated.

For the brokers out there on average what is the difference on interest rates between A vs B lenders right now?
Deal Guru
Feb 9, 2009
12370 posts
11280 upvotes
Can you find a little cheaper house? Even at 1.5 mil you should be ok.
Deal Addict
Apr 21, 2014
2301 posts
1064 upvotes
Alberta
bst wrote: Based on the various calculators out there your income will not allow you to take out a principal of about $750,000 as this grossly exceeds the GDS and TDS ratios at ~41%. Your situation is similar to someone that has $100k down looking to purchase a property worth $850k. Best of luck!
Can the OP do a HELOC in first position ? Instead of a mortgage.

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