Real Estate

Mortgage issues as a fixed-term employee

  • Last Updated:
  • Dec 19th, 2020 1:58 pm
[OP]
Newbie
Dec 18, 2020
4 posts

Mortgage issues as a fixed-term employee

Hey!

Here are the details:

-Looking to buy a condo for 375k
-80K downpayment saved
-Currently on 1 year term contract for 75k a year.
-Been in the industry for 4 years
-variable extra freelancing income of 10k-20k, but just started that this year
-Wife has same freelancing job for 15k a year, but also started this year.

As far as I know potential lenders are going to want to look through my 2 last years of NOA's since I am not permanent. The issue is that although my salary itself has been on an upward trajectory for the last 4 years, I have taken plenty of breaks on my own volition leading to incomes of just 34k and 45k in the last two years. Not enough to qualify for the mortgage we are looking at.

Are we screwed? Do we possibly have to wait 2 years now to get more favourable NOA's, or would a mortgage broker be able to get around this somehow?

Thanks a ton in advance!
6 replies
Deal Addict
User avatar
Apr 12, 2013
2016 posts
922 upvotes
Moon
They will be looking at your actual income which is (34k+45k)/2. You will need more saved up if you want a mortgage with a big bank, you can always go with B lenders though. Post this in mortgage thread, but my guess is you will be approved for 200k @ a big bank.

Edit: Just read you have wife lol, if her name is on the title you can use her income too, 15k a year (this year freelancing) is not likely to help by too much though.
Koodo, Public Mobile, Lucky Mobile Customer
[OP]
Newbie
Dec 18, 2020
4 posts
Thanks! That is depressing. We would be barely paying more housing costs per month than our current rent, but what can you do I guess.
Member
Aug 13, 2020
328 posts
401 upvotes
Nikkus wrote: Thanks! That is depressing. We would be barely paying more housing costs per month than our current rent, but what can you do I guess.
You can go with B lender - interest rate won't be too bad - around 3. Show good salary for a year and go back to A lender.
[OP]
Newbie
Dec 18, 2020
4 posts
DealFind25 wrote: You can go with B lender - interest rate won't be too bad - around 3. Show good salary for a year and go back to A lender.
Thanks! Yeah, that definitely wouldn’t be too bad. The previous poster said we might need a bigger downpayment for it, but I guess it might be worth the shot to talk to a broker at least.
Member
Aug 13, 2020
328 posts
401 upvotes
Nikkus wrote: Thanks! Yeah, that definitely wouldn’t be too bad. The previous poster said we might need a bigger downpayment for it, but I guess it might be worth the shot to talk to a broker at least.
You will need >20% which you have it seems. Interest rate may be more or less as well.
[OP]
Newbie
Dec 18, 2020
4 posts
DealFind25 wrote: You will need >20% which you have it seems. Interest rate may be more or less as well.
Ohh, alright! Thank you again for the info! :)

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