Real Estate

Getting my first mortgage without a job

  • Last Updated:
  • May 14th, 2016 12:32 am
[OP]
Sr. Member
Apr 15, 2009
588 posts
201 upvotes

Getting my first mortgage without a job

Thanks
54 replies
Deal Addict
Aug 31, 2014
1426 posts
466 upvotes
YVR, BC
how would you pay the mortgage?

there are a few brokers on here that can provide some advice
Deal Fanatic
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Mar 23, 2008
9739 posts
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Edmonton
I doubt you'll get a mortgage on your own without some form of verifiable income (i.e. Notices of Assessment). But I'd recommend talking to a mortgage broker rather than a bank, as they'll have more options available to you. They'll be able to fill you in. And you can likely do it over the phone.

C
Member
Dec 15, 2014
298 posts
180 upvotes
Vancouver, BC
Well depends on how much you are borrowing. If your reported income is $12,000 a year, you really can't borrow much at all. Maybe like $60,000 mortgage, if that. What is your credit rating like? From the sounds of your situation, you won't be able to get a mortgage without a co-signer since you don't make much in income.
[OP]
Sr. Member
Apr 15, 2009
588 posts
201 upvotes
LuckBox wrote:
May 6th, 2016 7:53 pm
Well depends on how much you are borrowing. If your reported income is $12,000 a year, you really can't borrow much at all. Maybe like $60,000 mortgage, if that. What is your credit rating like? From the sounds of your situation, you won't be able to get a mortgage without a co-signer since you don't make much in income.
I have superb credit score.
Way above what people say "good"
I will need to borrow $300k.
[OP]
Sr. Member
Apr 15, 2009
588 posts
201 upvotes
604nation wrote:
May 6th, 2016 7:50 pm
how would you pay the mortgage?

there are a few brokers on here that can provide some advice

I will be living with roomates, and receive rent.
Member
Dec 15, 2014
298 posts
180 upvotes
Vancouver, BC
thetimebytime wrote:
May 6th, 2016 8:03 pm
I have superb credit score.
I will need to borrow $300k.
No way you will get $300k on $12,000 income. The bank won't give you full credit on the rent from your roommates. You are definitely looking at a co-signer situation.
Deal Addict
Oct 29, 2010
4264 posts
622 upvotes
To get 300k mortgage you're probably looking at 60-70k income. Even if your parents co-sign it will be dicey unless you tie their assets (house) to your mortgage.
So then if you default, they take your house and their house, if you believe your income plus rent can cover the mortgage + costs then nothing bad will happen.
Keep in mind that it's a very bad idea what you're suggesting.
Deal Addict
Aug 31, 2014
1426 posts
466 upvotes
YVR, BC
thetimebytime wrote:
May 6th, 2016 8:05 pm
I will be living with roomates, and receive rent.
I think your parents will need to be co-signors and since they are providing the deposit and downpayment they are still essentially buying the place for you with just your name on title - not sure if the banks would consider the rental from room mates as stable income for mortgage purposes....
Deal Addict
Jun 20, 2011
1803 posts
619 upvotes
VANCOUVER
Banks won't consider rental income unless it is established. Like a rental/lease agreement. Obviously it's unlikely you'll get that done prior to purchase of the property.
Deal Addict
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Jun 24, 2002
2812 posts
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BC
Assuming excellent credit 50K income at 300K would be stretching it, but not impossible. A 12K income just won't cut it unless you you're buying it as investment property that you don't live in and you use the rental for the whole property as part of the income. If the down payment has been in your own accounts with your name on it for over 90 days you might be able to use the 35% down program.
Deal Addict
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Jul 11, 2011
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Ontario
...realistically you're about ten years away from owning your own home. Go out and get a job that pays, save up for your own down payment.

Sounds like you just want your parents (down payment) and your friends (rent money) to take you on a free ride here...hebs
Deal Addict
Nov 22, 2015
4822 posts
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thetimebytime wrote:
May 6th, 2016 7:31 pm
My parents put down payments on a condo under my name.
I only worked at my parents' business, and got paid very little. (less than 1k per month)
The condo is worth roughly 400~500k.

Is there anyway I could get the mortgage myself without the help from my family members?
Is it much more expensive compare to get it co-signed by my parents with very good credit history and enough assets to cover, in case I don't make the payment?
What about Mortgage insurance?
Co-signed by my parents?

It's my first time getting a mortgage, and I don't know where to start.

I just would like to get some brief idea before going into a bank, because I have no clue.

Any advice/help would be very appreciated.

Thank you.
I work for a major bank and can say that you definitely won't qualify for a mortgage on your own.

Banks simply cannot approve lending without income. All lending in Canada is income-based. This means that no matter how many assets you have, you still can't get approved unless you have reported income.

Even adding your parents as cosigners would not be sufficient - co-signer income is not used for debt ratio calculations. They need to be on title and be co-borrowers

Sorry, no bank is going to lend you 300K on a 12K income.
Deal Addict
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Dec 19, 2007
1593 posts
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Toronto
hebsie wrote:
May 7th, 2016 12:51 pm
...realistically you're about ten years away from owning your own home. Go out and get a job that pays, save up for your own down payment.

Sounds like you just want your parents (down payment) and your friends (rent money) to take you on a free ride here...hebs
Exactly.

OP, remove the idea of home ownership and having a mortgage from your mind period. You are not even remotely in a financial situation that will support what you are asking.

And you want to put your parents/family FURTHER on the hook even after "gifting" the $100k-$200k down? Amazing...
Sr. Member
Jul 26, 2007
581 posts
52 upvotes
Your parents should do the right thing for you and pay you a salary on paper. Also ask them to write a letter of employment with that salary so you can take that to your bank.

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