Home shopping List 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 man- ager 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-em- ployed, 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. “CMHC may have bigger issues with credit,” Alexander says. “CMHC might have issues with the property itself. For ex- ample, 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 lend- er 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.
‘Bring as much information regarding your application as possible.’
112 Parade of Homes Fall 2013
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