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Cont'd from page 111
CMHC will insure mortgages with down payments as low
as 5%, and it has enabled many Canadians to purchase
homes. Waenink and Royal Bank of Canada regional manager for mortgage specialists Brad Alexander say it's rare to
be turned down by CMHC once you've been pre-approved
for a mortgage.
However, CMHC may require additional documentation or
modified sale conditions. For example, if you're self-employed, traditional sources of income verification may not
be available. And if you're a recent immigrant and haven't
established a credit history in Canada, you may be asked to
provide alternate documentation.
'Bring
as much
information
regarding
your
application
as possible.'
"CMHC may have bigger issues with credit," Alexander says.
"CMHC might have issues with the property itself. For example, the house might not be appraised at the sale price,
which means you either need a lower price on the house or
you put more money down."
While it's not possible to secure pre-approval from CMHC,
there are steps you can take to make it more likely that
CMHC will insure your mortgage.
"Bring as much information regarding your application as
possible," Alexander says.
RBC and SCU websites have checklists of recommended
items clients should bring to pre-approval meetings. Be
open about your finances, and your lender may be able to
spot potential problems and help you find solutions.
In the event CMHC won't insure your mortgage, your lender may require a down payment of 20%, which may not be
an option for first-time buyers.
Waenink says SCU will try to work with members who don't
meet CMHC criteria, and in some cases may still be able to
offer a mortgage that works for you.
112 Parade of Homes Fall 2013
