Debunking Some of the Top Canadian Mortgage Myths

Share on facebook
Share on google
Share on twitter
Share on linkedin

Applying for a mortgage can be a worrying time for those looking to get onto the property ladder. There are countless myths about getting a mortgage in Canada – let’s look some of those myths and the truth behind them.

Myth – You need a down payment of at least 25% to be accepted for a mortgage.

Truth – Although a larger down payment never hurts, these days, there is a little more leeway. There are high-ratio mortgages that are available with a down payment of as little as 5%.

Myth – With a bad credit history, you’ll never be accepted for a mortgage.

Truth – Having a chequered financial history may not be the ideal situation when looking to secure a mortgage, but it does not preclude you from being accepted. 18 months of good credit will enable you to get back into the market for a home loan. Even if you have previously been declared bankrupt, if you can maintain good credit for two years post-discharge, you can be accepted for a mortgage.

Myth – Self-employed people cannot get a mortgage.

Truth – In the past, self-employed people did struggle to get onto the property ladder, however this is no longer the case. Find a good mortgage broker who can assist in choosing a lender that offers products to those who work for themselves. As long as you have a good credit history, pay your taxes on time and have been self-employed for over three years, you are likely to be accepted.

Myth – Down payments cannot be a loan.

Truth – You can borrow a sum of money from a relative in the form of a “gift” to use as your down payment. Some lenders will also consider accepting you if you take out a loan for your 5% deposit.

For more information about mortgages, contact the experts at Sky Financial – The Mortgage Centre.



Leave a Replay

About Sky Financial

We incorporated The Mortgage Centre-Sky Financial Corp. in August 1992 in Edmonton Alberta. Furthermore we opened offices in Fort McMurray, Cold Lake, Grande Prairie, Red Deer, Stettler, Saskatoon, Moose Jaw and Prince George BC.

Recent Posts

Sign up for our Newsletter