Home / Mortgage Qualifying
To qualify for an “A” mortgage in Ontario, which typically refers to a conventional mortgage with a prime lender, you will need to meet certain basic requirements. These requirements may vary depending on the lender, but here are some common criteria that you may need to meet:
Good Credit: You will need to have a good credit score and a clean credit history with no recent delinquencies, bankruptcies or consumer proposals.
Stable Income: You will need to have a stable source of income that can be verified, such as employment income, self-employment income or rental income. The lender will typically require you to provide proof of income, such as pay stubs, tax returns, or bank statements.
Down Payment: You will need to have a down payment of at least 20% of the purchase price of the home. If you have less than 20% down payment, you may still be able to qualify for an A mortgage, but you will need to pay for mortgage default insurance.
Debt-to-Income Ratio: Your debt-to-income ratio (DTI) should be within an acceptable range, typically less than 43%. This means that your total monthly debt payments, including your mortgage payment, should not exceed 43% of your gross monthly income.
Property Appraisal: The lender will require a property appraisal to ensure that the value of the property is sufficient to cover the mortgage amount.
These are some of the basic requirements for an A mortgage in Ontario. It’s important to note that lenders may have additional requirements, and that the specific criteria and interest rates may vary depending on your individual financial situation and the lender you choose.
Welcome to Castle Mortgages, our full-service mortgage brokerage firm specializing in providing mortgage solutions for self-employed individuals across Ontario. At our firm, we understand that being self-employed comes with unique financial challenges, and we’re here to help you overcome them.
