Purchasing a new home is tough in B.C. at the best of times, and often people working in film and television feel they have no chance of qualifying for a mortgage with their inconsistent income when approaching a bank for a mortgage.
We have experience dealing with this type of income and understand the unique structure of how you are paid. We know how to prove your income and qualify you for the maximum mortgage just like any other borrower.
The first thing we’ll look at is what type of mortgage you’ll need. Are you Canadian, a U.S. citizen, or from another country and here on a work visa? This will impact the amount of down payment required and which documents you will need to provide.
Lenders will need to see all of your income from the past two years. We know your income will originate from different production companies and employers over the span of any given year, and will need to determine the combined average of your income. This will give the lender confidence that you will be able to pay your mortgage for the length of the term.
As a general rule, lenders will want to see the below list, so if you can gather these together before we speak, I can let you know how much you qualify for in 24 hours!
- All of your T4s for the previous two years
- If you are currently in production, a letter of employment and paystub from that production company / employer or a letter from your payroll company (we will discuss this once I know your particular situation)
- Last two T1 Generals (full tax filing)
- Last two Notices of Assessment (NOA) - we will need to confirm you have no income taxes owing
- 90 days history of any account(s) your down payment and closing costs will come from
- Work Permit or PR card if applicable
Once we have determined how much you can qualify for, we will look at what purchase price is truly right for you, taking into consideration your income situation, desired lifestyle, and future goals. Even though your hours are long, you want to make sure you are not housebound eating toast when you are not working!
If you are a Canadian citizen or qualify for the ‘New to Canada’ program, you can purchase with a minimum of 5% down on the portion $500K and under, and 10% for the portion of purchase price above $500K. For any purchase with less than 20% down, an insurance premium is added to the mortgage and spread over the length of the mortgage, or amortization. For any property valued at $1M or higher and for any investment property, the minimum down payment is 20% and there is no insurance premium added to the mortgage. If you are a Non-Resident, the minimum down payment will be 20% for U.S. citizens and 35% for everyone else.
Once we have your purchase price and down payment determined, we will lock in a rate for 120 days for you while you start actively looking for your home. This guarantees a maximum rate should interest rates increase while you are still shopping.
Once you have found your new home, we will research the best mortgage options and rates for you again at that time, and walk you through the pros and cons of each option to help you make the decision that feels most right for you.
Our team will help you from first call through to following up with your lawyer at closing to ensure your home buying experience is a smooth and a happy one!
*If you are a First Time Homebuyer, please click here for more information and incentives, exemptions, and credits available.
*If you are New to Canada, please click here for more details.
*If you are a Non-Resident, please click here for more information and tax implications in Canada.
Call or email me to discuss how to start on your journey to being a home owner!