Want To Qualify For A Better Mortgage...What To Do?!

Want To Qualify For A Better Mortgage...What To Do?!

Specialist · Brampton, ON · Member since 2020 · 34 posts · 12 votes

Hello all! I am a young 22 year old and I work full time as a Sales Rep (salary+commission). With the info I received so far, I am able to qualify for a mortgage of about 225k. Given the current market prices, this is not ideal haha.

Is there anything that I can do in order to raise this number? Aside from getting a co-sign?

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Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
4y

@Cameron Chambers  was this information provided to you by a lender, or are you making your own assessment?  I'd recommend that you chat with a mortgage broker for confirmation and make sure that your income (with a commission component) has been properly recognized.

In addition to your income and credit score, lenders will look at your ability to service debt.  If you have outstanding credit card balances, car loans, or other debt, this will impact your ability to borrow.

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  • Real Estate Agent · Windsor, CO · Member since 2016 · 133 posts · 27 votes
    4y

    The biggest things that lenders look at is your credit score and how much you make. Are you able to increase your credit score or get another job to help you show you make more money?

  • Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
    4y

    @Cameron Chambers  was this information provided to you by a lender, or are you making your own assessment?  I'd recommend that you chat with a mortgage broker for confirmation and make sure that your income (with a commission component) has been properly recognized.

    In addition to your income and credit score, lenders will look at your ability to service debt.  If you have outstanding credit card balances, car loans, or other debt, this will impact your ability to borrow.

  • Specialist · Brampton, ON · Member since 2020 · 34 posts · 12 votes
    4y

    @Chris Baxter I have a senior mortgage advisor in my family. I have zero debt and and all debt I have had I payed off very quickly.

  • Specialist · Mortgage Broker Canada · Member since 2015 · 316 posts · 118 votes
    4y

    @Cameron Chambers Your household income, liabilities (repayments of debts) and creditworthiness all impact your borrowing power. Is a co-applicant an option?

  • Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
    4y

    You can always consider a private lender that may lend you more, and you can also look for a Joint Venture partner.  Someone who can help you qualify for more and own the new property with you.  Often a Mom and Dad situation.  Good Luck!

  • Member since 2021 · 237 posts · 153 votes
    4y

    @Cameron Chambers

    Don’t buy a car on financing until you’ve purchased the property you want. Car dealers give loans to anyone not legally dead, home ownership is tougher.

    Increase your annual earnings doing whatever is necessary including documentable side gigs for the next 2 tax seasons. Accept no further debt no matter how sexy it is until you’re approved for the desired amount.

    Start today.

  • Lender · Pasco, WA · Member since 2020 · 84 posts · 50 votes
    4y

    Increase your income. Get your credit score to at least 720 if not 740. Keep your debt low and DON'T GET A BRAND NEW TRUCK JUST BECAUSE THE SALESMAN SAID YOU CAN QUALIFY FOR IT

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