Richards Mortgage Group Articles

Last updated May 2019 From a traditional lender's perspective, they'd like if all employment income was guaranteed with no risk of variability. But sadly (for them) that just isn't the case. Here are things that lenders look at when evaluating a prospective buyer's income for the purpose of mortgage qualification. It's not written in stone, but they are trying to assess how likely your income is to continue without interruption. There are alternative lenders with less stringent requirements if your down payment or equity exceeds 20%.

Employment Standards to Get a CMHC-insured Mortgage Employment by Others (Salary) In general, employment and income should be confirmed with a formal letter from the employer stating length and type of employment (ie: as full time, part time, regular, probation, etc), and the amount of salary. Lenders are also responsible for providing additional supporting documentation such as current payroll stubs and applicant’s annual tax returns or the tax assessment receipts. To demonstrate the necessary stability of an applicant’s employment, borrowers should have been continuously employed by their current employer for a minimum of one full year. Those applicants who may be on probation or work under short-term contracts, are normally not considered salaried employees. Please note: prior employment history should always corroborate an applicant’s current employment circumstances.

A Short Course on Credit Repair Please note that this is exactly what the title says it is: a short course. It does not cover all aspects of this complex subject not does it cover specific circumstances.

A builder is offering cash back if I buy his house – can he do that? Builders (sellers, investors, etc.) frequently try to entice buyers into a transaction with cash back at closing, but in most (all) jurisdictions, it is a form of mortgage fraud and won't fly. Factually, while they might succeed getting you into a transaction, in reality the bank / mortgage lender will simply reduce the purchase price by the cash back amount, which will serve to increase your down payment requirements by the same amount. The reason is that if the seller is willing to give you cash back, then they would be willing to sell at a reduced price. So the real purpose of a cash-back offer is to entice/trick you into a transaction, which is not permitted and in fact illegal.

Effective, April 19, 2010, there are new rules for self-employed Canadians as it relates to qualifying for a CMHC-insured mortgage. This is especially relevant if you are: