Christine Buemann Mortgage Broker

Are you having a hard time finding a house within your pre-approved price range?  Did you know that qualified borrowers with good credit can use Child Tax Credit income for qualifying? Here is a sample scenario: Husband makes $60k and wife makes $35k a year and they have 2 small children. This would give them a benefit amount of $7862 a year.  By using the extra income from their Child Tax Benefit, they would qualify for an extra $37,500 in purchase price! Most lenders will not accept this type of income, however we have several great lenders (with low rates and flexible mortgage terms) who will!  For more information on this product or for any mortgage related questions, feel free to contact me today! www.christinebuemann.ca 

“Debt servicing” is your ability to meet all payments without exceeding the income received by you. There are two ratios that are examined by financial institutions to determine whether you can debt service a mortgage. The first one is called the “gross debt service” ratio and the second is called the “total debt service” ratio. With the gross debt service ratio, a lender looks at your annual income in comparison to your proposed annual mortgage payments (including heat and property taxes). This ratio cannot exceed 35%. For those who have exceptional credit, the allowable GDS ratios can increase to as high as 39%. Once you meet these criteria, the lender then examines your total debt service ratio. This ratio involves comparing your annual income to the total amount of debts you have (the proposed mortgage payment, credit cards, loans, personal lines of credit, support payments and all other financing obligations). Generally, this ratio cannot exceed 42%. For those who have ex...