Real Estate

Only wife has name on title and lender, but I have all the income. How to proceed at mortgage renewal time?

  • Last Updated:
  • May 18th, 2019 11:59 pm
[OP]
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Sep 2, 2008
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Only wife has name on title and lender, but I have all the income. How to proceed at mortgage renewal time?

This is our first mortgage term and our first property. Mortgage is with TD and only my wifes name is on the mortgage and title. We applied to TD through their newcomer to Canada program, which did not have an income requirement as long as we had 20% down. My wife had very little income at the time. I had the bulk of the income however at the time I was having trouble getting approved the amount we wanted.
Although they said there was no income requirement when going through the newcomer program, they still asked me to submit my financial information, and I had to show some proof of my own assets in order to finalize the deal. Also when closing our mortgage, my signature was required on some documents. I am referred to as spouse of XXXXXX on the documents.

Now my income is more than enough to satisfy my current mortgage and we both have excellent credit scores. My only worry is that since my name isn't on, they will not accept my income and credit. Does anyone know how that works? If not, then I need to look into adding my name to the title and mortgage in order to do so?

Thanks
Last edited by slowtyper on Apr 21st, 2019 10:40 pm, edited 1 time in total.
15 replies
Member
Feb 15, 2018
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We have people saying Canadian banks do not do NINJA loans :rolleyes: Wow, a mortgage with no income requirements.

Anyway, to answer your question to the best of my abilities as I am not a mortgage broker - yes, you can add another person at renewal. I have done it. The lender assesses the other new party as if they were a new applicant - has to undergo the entire underwriting process. Whereas, if it was just the original applicant renewing, the lender usually automatically approves you without even checking if you are still employed - unless you have missed payments. What advantage does adding your name to the mortgage offer. Dont know?

Even if your name is not on the mortgage, you are protected by dower rights. It means your spouse can not sell the property without your written permission. I am pretty sure the mortgage renewal document will state that if the applicant is married then their spouse needs to sign.
[OP]
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Sep 2, 2008
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yes, you can add another person at renewal. I have done it. The lender assesses the other new party as if they were a new applicant - has to undergo the entire underwriting process.
Any additional fees doing this? Did you need a lawyer again?
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Feb 2, 2014
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slowtyper wrote: This is our first mortgage term and our first property. Mortgage is with TD and only my wifes name is on the mortgage and title. We applied to TD through their newcomer to Canada program, which did not have an income requirement as long as we had 20% down. My wife had very little income at the time. I had the bulk of the income however at the time I was having trouble getting approved the amount we wanted.
Although they said there was no income requirement when going through the newcomer program, they still asked me to submit my financial information, and I had to show some proof of my own assets in order to finalize the deal. Also when closing our mortgage, my signature was required on some documents. I am referred to as spouse of XXXXXX on the documents.

Now my income is more than enough to satisfy my current mortgage and we both have excellent credit scores. My only worry is that since my name isn't on, they will not accept my income and credit. Does anyone know how that works? If not, then I need to look into adding my name to the title and mortgage in order to do so?

Thanks
You can do an auto renew with TD....no re-underwriting.

If you want to change lenders, then you need to add your name to the property first. You can ask lawyer how much exactly this will cost.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
[OP]
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CdnRealEstateGuy wrote: If you want to change lenders, then you need to add your name to the property first. You can ask lawyer how much exactly this will cost.
Is this really the only option though? Can they transfer the existing mortgage in my wifes name and add me as a cosigner if they won't consider my income/credit otherwise?
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Feb 29, 2008
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That newcomer program is shameful. All you need is 20% down, meanwhile Canadians with income and 20% down are jumping through hoops. What a time to be alive.
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Feb 15, 2018
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slowtyper wrote: Is this really the only option though? Can they transfer the existing mortgage in my wifes name and add me as a cosigner if they won't consider my income/credit otherwise?
Trying to understand your real question or what you are worried about?

If you worried about whether the bank will renew the mortgage with your wife's low income, then you shouldn't worry as banks usually do automatic renewals without asking for anything - unless you guys missed a number of payments. In other words you are guaranteed a renewal from your current lender. Will the rate they offer you be the best - probably not. Your wife can always call them and tell them that another lender has offered her a better rate and ask them to match or she will switch.

Are you just worried about your name not being on the title or mortgage? As long as you are married and living in that house you have rights to that house. Under dower rights your spouse can not sell the house without your approval.

If you are going to go through all the work to be added as a co-signer, when the bank never asked for a cosigner, then you might as well be added to the mortgage as a joint tenant. This usually involve lawyer fees and title change fees. Not sure about your province but in Alberta lawyers fees for an average house are $450 and the title change fees are $650. Just a little over a thousand for everything.
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Oct 21, 2013
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waterloo, on
Usually mortgage is automatically renewed. which means, they don't need to look at your income, they will just offer you the best rate and you have to accept it or leave it.

but if you change lenders, then whole new application will start.

In your situation, you can voluntiarily add your name to the mortgage and they might ask for income docs. but its totally optional.
[OP]
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canuckstorm wrote: Trying to understand your real question or what you are worried about?

If you worried about whether the bank will renew the mortgage with your wife's low income, then you shouldn't worry as banks usually do automatic renewals without asking for anything - unless you guys missed a number of payments. In other words you are guaranteed a renewal from your current lender. Will the rate they offer you be the best - probably not. Your wife can always call them and tell them that another lender has offered her a better rate and ask them to match or she will switch.

Are you just worried about your name not being on the title or mortgage? As long as you are married and living in that house you have rights to that house. Under dower rights your spouse can not sell the house without your approval.

If you are going to go through all the work to be added as a co-signer, when the bank never asked for a cosigner, then you might as well be added to the mortgage as a joint tenant. This usually involve lawyer fees and title change fees. Not sure about your province but in Alberta lawyers fees for an average house are $450 and the title change fees are $650. Just a little over a thousand for everything.
I'm only worried about getting the best rate when shopping for a renewal and getting competitive rates.
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Mar 9, 2007
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Think of the Childre…
You can negotiate the rate with same bank, they won't check income.
slowtyper wrote: I'm only worried about getting the best rate when shopping for a renewal and getting competitive rates.

WOULD SOMEBODY THINK OF THE CHILDREN!!!
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Nov 22, 2015
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- TD collateral charge mortgage (non-transferable, discharge fees, potential legal fees)
- Source of income not on title (legal fees)
- Conventional (low ratio, low risk of being upside down)
- Who knows if OPs income is even enough to qualify under new stress test rules?

Sounds like you're sticking with TD..
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Feb 15, 2018
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slowtyper wrote: I'm only worried about getting the best rate when shopping for a renewal and getting competitive rates.
If you are looking for the best rate then there are two options:

1)Go to sites like Ratehub that post rates and see what are the latest low rates. Your wife then calls TD bank and asks them to match the rate from said financial institution. TD will either match it or go a bit higher. If you and the wife are satisfied with the rate from TD, then let them automatically renew - your wife will need to sign the automatic renewal form. There should also be a section on the same form for a spouse to sign (this is for dower rights and does not make you the mortgagor).

2)Switch to a different lender (one who offers the rate you want). This will be treated by the new lender as a new application. They will run a full application on your wife or both of you if your wife's income is not enough to support the mortgage. Bottom line is that with a new lender they want to make sure your guys income and debt repayments can support the mortgage.
[OP]
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Sep 2, 2008
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JayLove06 wrote: That newcomer program is shameful. All you need is 20% down, meanwhile Canadians with income and 20% down are jumping through hoops. What a time to be alive.
Slightly different. It was 35% down required at the time plus you had to show you had enough cash to pay the closing costs and mortgage payments for a year. I wrote it down wrong in the first post. I do agree its pretty dumb to be for newcomers only. They should just make those same requirements open up to everyone in that case.
Last edited by slowtyper on May 18th, 2019 7:40 pm, edited 3 times in total.
[OP]
Deal Guru
Sep 2, 2008
11359 posts
1392 upvotes
canuckstorm wrote: If you are looking for the best rate then there are two options:

1)Go to sites like Ratehub that post rates and see what are the latest low rates. Your wife then calls TD bank and asks them to match the rate from said financial institution. TD will either match it or go a bit higher. If you and the wife are satisfied with the rate from TD, then let them automatically renew - your wife will need to sign the automatic renewal form. There should also be a section on the same form for a spouse to sign (this is for dower rights and does not make you the mortgagor).

2)Switch to a different lender (one who offers the rate you want). This will be treated by the new lender as a new application. They will run a full application on your wife or both of you if your wife's income is not enough to support the mortgage. Bottom line is that with a new lender they want to make sure your guys income and debt repayments can support the mortgage.
1) yes thanks that has been established already. I also signed a spousal consent form during the initial application.
2) When you say I will be treated as a new application, that means I need to get a lawyer again and appraisal as well? Do I have to add my name to the title as well? How about my title insurance is that transferrable? If I have to do all that...seems like too much work.
3) The option where we simply transfer the mortgage to a new lender and add myself as cosigner that I suggested...is it really that much work to add myself as a cosigner? You suggested it seems like a lot of work but compared to option 2, seems like it would be much cheaper and easier.

I mean yes staying with TD and negotiating an OK rate is most likely always going to the easiest method but I am just trying to figure out all the options so we aren't stuck with one when the time comes (Nov 2020).

And good point about wondering if the new income meets the new stress test criteria. Yes its not a problem at all.
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slowtyper wrote: Is this really the only option though? Can they transfer the existing mortgage in my wifes name and add me as a cosigner if they won't consider my income/credit otherwise?
You need to be on title for your income to be used to qualify.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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