Real Estate

First Time Home Buyer questions

  • Last Updated:
  • Jan 2nd, 2020 4:19 pm
[OP]
Newbie
Mar 17, 2012
99 posts
8 upvotes
Eastern Ontario

First Time Home Buyer questions

Hi,

A couple questions from a newly married couple- (not us!)

Can someone purchase a house with a down payment and good credit history but just graduated from college? Son has worked full time before school and part time during school. He did a co-op in the summer and they have kept him on since and he has employment until May (with likely an offer of permanent work). They are looking to buy after he has permanent offer--do they need to wait 2 years from that time or does earlier employment count that was not in his field?
3 replies
Newbie
Aug 15, 2018
82 posts
83 upvotes
The banks usually offer the following options:

Option 1: Prove you are employed on a full time permanent basis via employment letter and pay stub - meaning you need to be currently employed (long term of 2 years is not required).
You will possibly need to be working for a few months to get out of the "probation" stage.

Option 2: If you are not working on a full time permanent basis, you can show tax statements (T1 general and notice of assessment) from the past 2-3 years to prove you earn the salary required to support the mortgage payments.
Deal Fanatic
User avatar
Feb 2, 2014
8888 posts
2543 upvotes
Toronto
momofmen wrote: Hi,

A couple questions from a newly married couple- (not us!)

Can someone purchase a house with a down payment and good credit history but just graduated from college? Son has worked full time before school and part time during school. He did a co-op in the summer and they have kept him on since and he has employment until May (with likely an offer of permanent work). They are looking to buy after he has permanent offer--do they need to wait 2 years from that time or does earlier employment count that was not in his field?
He will have to be employed permanent full-time before using his income to qualify on the A side.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Feb 2, 2014
8888 posts
2543 upvotes
Toronto
Ofirsc wrote: The banks usually offer the following options:

Option 1: Prove you are employed on a full time permanent basis via employment letter and pay stub - meaning you need to be currently employed (long term of 2 years is not required).
You will possibly need to be working for a few months to get out of the "probation" stage.

Option 2: If you are not working on a full time permanent basis, you can show tax statements (T1 general and notice of assessment) from the past 2-3 years to prove you earn the salary required to support the mortgage payments.
Option 2 not available in this case, based on OP's post.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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