Personal Finance

Mortgage $$ while laid off

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  • May 30th, 2021 7:23 pm
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May 29th, 2021 10:06 pm
vanclty [OP]
Sr. Member
Apr 23, 2014
932 posts
414 upvotes
Toronto, ON

May 29th, 2021 10:06 pm

Mortgage $$ while laid off

Hello

I have 70k income. Family member I want to purchase house with is laid off due to tourism industry, 33k job. Return to job is dependent on tourism restarting. Getting 60% salary for now.


1) Can still still apply for mortgage with 70+33k or can only be based on 70k?
2) Last year I made 50k, but now 70k. Does the bank use average of two or based off 70k?
3) Do job titles matter? I'm analyst now, but I can ask for managerial role (I didnt bother during my review because salary is more important to me than title).
4) Can child benefit be part of income so to afford higher mortgage?
6 replies
May 29th, 2021 11:13 pm
UrbanPoet
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Jan 27, 2004
50499 posts
14840 upvotes
ONTARIO

May 29th, 2021 11:13 pm

Its gotta be job income earned @ that moment. Not possible income earned in the future. I think there are a few exceptions... Like for Medical Doctors (correct me if I'm wrong). But thats more of a case like "oh... I went from hospital A to Hospital B last week... so I havent yet completed my 6 month probation...".
Also highly unlikely you can use govt. child benefit as income. However you could use a court enforced alimony or child support payment.
May 29th, 2021 11:16 pm
vanclty [OP]
Sr. Member
Apr 23, 2014
932 posts
414 upvotes
Toronto, ON

May 29th, 2021 11:16 pm

UrbanPoet wrote: ↑Its gotta be job income earned @ that moment. Not possible income earned in the future. I think there are a few exceptions... Like for Medical Doctors (correct me if I'm wrong). But thats more of a case like "oh... I went from hospital A to Hospital B last week... so I havent yet completed my 6 month probation...".
Also highly unlikely you can use govt. child benefit as income. However you could use a court enforced alimony or child support payment.
So that 60% income while laid off at the moment, can that be used?
May 30th, 2021 5:28 pm
lmcjipo
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Sep 14, 2012
2373 posts
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Montreal, QC

May 30th, 2021 5:28 pm

vanclty wrote: ↑ So that 60% income while laid off at the moment, can that be used?
It can be used if it is employment income (salary). By this, I mean if the company reduced the hours of the individual and of course reduced the pay, For example, if the individual worked full-time in a hotel and because of Covid and travel restrictions, the hotel only needs 20% of their employees (cleaning staff, etc.) and out of this 20% of employees, these employees are also working fewer hours, so their salary is reduced, this money/salary can be used.

If you are referring to some sort of 60% of salary based on government work assistance (CERB, EI, etc.), this can't be used.
+1
May 30th, 2021 7:17 pm
zeddy
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Jun 12, 2008
1524 posts
1066 upvotes
Ripley

May 30th, 2021 7:17 pm

1) Can still still apply for mortgage with 70+33k or can only be based on 70k? 70k
2) Last year I made 50k, but now 70k. Does the bank use average of two or based off 70k? Did you change companies or just positions? If you changed companies the bank will want you to have been with your current employer for at least 2 years. If you can provide an employment letter stating you make 70k they will look at that but they will also want your 2020 notice of assessment from CRA.
3) Do job titles matter? I'm analyst now, but I can ask for managerial role (I didnt bother during my review because salary is more important to me than title). No
4) Can child benefit be part of income so to afford higher mortgage? Not income

Curious where in Canada you can buy a house for $280,000?? The bank is unlikely to give you a mortgage that is more than 4 times your income. And that's with zero other debt. You would need a huge down payment to make up the rest.
May 30th, 2021 7:23 pm
vanclty [OP]
Sr. Member
Apr 23, 2014
932 posts
414 upvotes
Toronto, ON

May 30th, 2021 7:23 pm

zeddy wrote: ↑1) Can still still apply for mortgage with 70+33k or can only be based on 70k? 70k
2) Last year I made 50k, but now 70k. Does the bank use average of two or based off 70k? Did you change companies or just positions? If you changed companies the bank will want you to have been with your current employer for at least 2 years. If you can provide an employment letter stating you make 70k they will look at that but they will also want your 2020 notice of assessment from CRA.
3) Do job titles matter? I'm analyst now, but I can ask for managerial role (I didnt bother during my review because salary is more important to me than title). No
4) Can child benefit be part of income so to afford higher mortgage? Not income

Curious where in Canada you can buy a house for $280,000?? The bank is unlikely to give you a mortgage that is more than 4 times your income. And that's with zero other debt. You would need a huge down payment to make up the rest.
2) same company

To your question, was hoping I could use 33k. Guess I'll wait for tourism industry to return lol.

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