Qualifying A Mortgage

The Three C’s of Lending
When qualifying a mortgage, a lender will use the following parameters to determine the risk associated with a mortgage and determine if a borrower’s profile fits into their guidelines and risk tolerances.

Details

Types of Lenders
As a mortgage broker, you will encounter three main types of lenders; A lender, B lenders and Private lenders. Here I will describe the differences between them.

Types of Mortgages

Income
Determining the income that can be used by the lender is key in acquiring an approval. Here I will list the income types and the caveats that go along with them:

Qualification of Mortgages and Secured Lines of Credit

Property

Debt Servicing
When a client has debt, they are qualified differently for TDS purposes depending on the type of debt and whether or not the credit can be advanced once paid down (revolving account).

Credit History
A client’s credit history is a crucial factor that lenders will consider before approving a mortgage. This is most important when qualifying an insured high ratio mortgage.

Types of Qualification (Insured, Insurable, Uninsurable)
A mortgage can be grouped into three categories of qualification which will determine the rate, term, prepayment options and other parameters of the mortgage.

Calculating Prepayment Penalties
Prepayment penalties are calculated in two difference fashions; Interest Rate Differential (IRD) and 3 months interest payments.

Qualification Tips and Tricks
GDS/TDS

LTV

Income

Prepayment Charge Types

Prepayment Charge Example

Owner-occupied properties up to 80% LTV

Rental properties up to 75% LTV

Alternative lending guidelines
The following details apply across all of our alternative lending products: fixed rate, variable rate, and rentals. Make sure that you also note the guidelines specific to each product. (See pages 3 and 4)

Quiz

Course Content

The Three C’s of Lending When qualifying a mortgage, a lender will use the following parameters to determine the risk associated with a mortgage and determine if a borrower’s profile fits into their guidelines and risk tolerances.

Details

Types of Lenders As a mortgage broker, you will encounter three main types of lenders; A lender, B lenders and Private lenders. Here I will describe the differences between them.

Details

Types of Mortgages

Details

Income Determining the income that can be used by the lender is key in acquiring an approval. Here I will list the income types and the caveats that go along with them:

Details

Qualification of Mortgages and Secured Lines of Credit

Details

Property

Details

Debt Servicing When a client has debt, they are qualified differently for TDS purposes depending on the type of debt and whether or not the credit can be advanced once paid down (revolving account).

Details

Credit History A client’s credit history is a crucial factor that lenders will consider before approving a mortgage. This is most important when qualifying an insured high ratio mortgage.

Details

Types of Qualification (Insured, Insurable, Uninsurable) A mortgage can be grouped into three categories of qualification which will determine the rate, term, prepayment options and other parameters of the mortgage.

Details

Calculating Prepayment Penalties Prepayment penalties are calculated in two difference fashions; Interest Rate Differential (IRD) and 3 months interest payments.

Details

Qualification Tips and Tricks GDS/TDS

Details

LTV

Details

Income

Details

Prepayment Charge Types

Details

Prepayment Charge Example

Prepayment Charge Example

Owner-occupied properties up to 80% LTV

Details

Rental properties up to 75% LTV

Details

Alternative lending guidelines The following details apply across all of our alternative lending products: fixed rate, variable rate, and rentals. Make sure that you also note the guidelines specific to each product. (See pages 3 and 4)

Details

Quiz

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The Three C’s of Lending
When qualifying a mortgage, a lender will use the following parameters to determine the risk associated with a mortgage and determine if a borrower’s profile fits into their guidelines and risk tolerances.

Types of Lenders
As a mortgage broker, you will encounter three main types of lenders; A lender, B lenders and Private lenders. Here I will describe the differences between them.

Income
Determining the income that can be used by the lender is key in acquiring an approval. Here I will list the income types and the caveats that go along with them:

Debt Servicing
When a client has debt, they are qualified differently for TDS purposes depending on the type of debt and whether or not the credit can be advanced once paid down (revolving account).

Credit History
A client’s credit history is a crucial factor that lenders will consider before approving a mortgage. This is most important when qualifying an insured high ratio mortgage.

Types of Qualification (Insured, Insurable, Uninsurable)
A mortgage can be grouped into three categories of qualification which will determine the rate, term, prepayment options and other parameters of the mortgage.

Calculating Prepayment Penalties
Prepayment penalties are calculated in two difference fashions; Interest Rate Differential (IRD) and 3 months interest payments.

Qualification Tips and Tricks
GDS/TDS

Alternative lending guidelines
The following details apply across all of our alternative lending products: fixed rate, variable rate, and rentals. Make sure that you also note the guidelines specific to each product. (See pages 3 and 4)