Want to get pre-approved for a Mortgage

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Bank-snoopy

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Want to get pre-approved for a Mortgage
« on: May 08, 2015, 02:40:29 PM »
hey guys,

I just finished my CP at the end of April and my wife and I are starting to look for our first house
I have 25k in my RSP for a first time buyer deposit

is it going to be hard for me to get pre-approved for a mortgage?
i heard that normal banks won't even look at me

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Bank-snoopy

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Re: Want to get pre-approved for a Mortgage
« Reply #1 on: June 12, 2015, 09:38:37 AM »
I didn't get a reply from anyone but I got the help I needed here
canadianmortgagefinder dot com

Hope it can help someone else

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TreeFrog

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Re: Want to get pre-approved for a Mortgage
« Reply #2 on: June 14, 2015, 09:49:14 PM »
Hi! Thanks for the link. Sorry no one replied - busy time of year.

I just wanted to say that there's no harm in inquiring with mortgage lenders. Don't settle for a poor deal - shop around. Credit unions can be a great help.

The limiting factor is often not the bank's willingness to lend, but the rules associated with the mortgage insurance you must get if you have a high-ratio mortgage (one that is for over 80% of the assessed value of the home). CMHC and Genworth, the usual mortgage insurers, require a certain period of time to pass after release from bankruptcy or completion of CP before they will insure. This used to be 3 years, but may have changed.

If your downpayment is for more than 80% of the home's value, it's not a high-ratio mortgage and you may not be required to get mortgage insurance. Your mortgage lender can then rely on their own assessment of your creditworthiness. I was able to transfer my mortgage to my local credit union at the posted rate, DURING my CP, because my mortgage was below 80% of my home's value.

Hope this helps,
~Wendy

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Bank-snoopy

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Re: Want to get pre-approved for a Mortgage
« Reply #3 on: June 16, 2015, 09:05:12 AM »
Ya that is what my contact told me
basically I can have a lot of options if I come up with 20% for a deposit

right now I have 5-6% but as it is a new development i will have extra time to save for a larger deposit (plus my parents said they could help get me to 20%)

He also told me that there has been a trend towards starting to make some lending policies a bit less strict (so here is hoping)

 

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