I’m really worried about getting approved for a mortgage
I feel like I did something stupid and need advice or reassurance if everything is ok.
Partner and I bought a new build house in Kingston (just outside of it) last year when rates were lower and it’s closing this fall (rates rising). I’m worried about the rates and if we’ll now qualify for a mortgage.
Here’s our numbers:
House price: $862k
Down payment: $297k (gave 40k to builder already)
Mortgage needed: $560k
Property taxes: should be less than 6k but I think the lenders will use 1% of purchase price as the property has not been assessed yet from MPAC (new build).
My salary: $77,600 (perm gov job)
Partners salary: $65,500 (perm gov job)
My credit: 830/830 - perfect credit, long history
Partners credit: 699EQ/779TU, only 2.5 years of credit history and only has one credit card on file 6500 limit. Partner did pay off student loans which appears as well as Rogers cell phone bills. Partner does have 3 credit cards but only 1 is appearing (Neo and Flexity don’t report to the bureaus apparently).
We have no debts.
We will also have approx. 30k in extra savings for closing costs.
Given the rate increases and my partners (lack of) credit history, will we have any troubles securing a mortgage for our closing this fall? I’m aiming to lock something in for Aug/Sept ish. We are now just worried about rising interest rates. Surely an alternate or B lender will lend to us right, obviously hoping for an A lender.
I did a few calculations on our GDS, and at the stress test rate of 5.25% for 30 year amortization, our GDS would be about 32.8%. But what happens if rates increase another 3%? Would that even be possible?
What do I do for some peace of mind?
Thanks a lot everyone!
Signed - not sleeping at night, stressed and anxious
Partner and I bought a new build house in Kingston (just outside of it) last year when rates were lower and it’s closing this fall (rates rising). I’m worried about the rates and if we’ll now qualify for a mortgage.
Here’s our numbers:
House price: $862k
Down payment: $297k (gave 40k to builder already)
Mortgage needed: $560k
Property taxes: should be less than 6k but I think the lenders will use 1% of purchase price as the property has not been assessed yet from MPAC (new build).
My salary: $77,600 (perm gov job)
Partners salary: $65,500 (perm gov job)
My credit: 830/830 - perfect credit, long history
Partners credit: 699EQ/779TU, only 2.5 years of credit history and only has one credit card on file 6500 limit. Partner did pay off student loans which appears as well as Rogers cell phone bills. Partner does have 3 credit cards but only 1 is appearing (Neo and Flexity don’t report to the bureaus apparently).
We have no debts.
We will also have approx. 30k in extra savings for closing costs.
Given the rate increases and my partners (lack of) credit history, will we have any troubles securing a mortgage for our closing this fall? I’m aiming to lock something in for Aug/Sept ish. We are now just worried about rising interest rates. Surely an alternate or B lender will lend to us right, obviously hoping for an A lender.
I did a few calculations on our GDS, and at the stress test rate of 5.25% for 30 year amortization, our GDS would be about 32.8%. But what happens if rates increase another 3%? Would that even be possible?
What do I do for some peace of mind?
Thanks a lot everyone!
Signed - not sleeping at night, stressed and anxious
