Applying for a Mortgage

[abasmaci]

Hey everyone



I am a currently a student with no full time job ( I have had several odd jobs here and there but my mom supports me for the most part). I wonder, what sort of obstacles I will face when applying for a mortgage. My verifiable income is pretty much negligible I assume. I have no credit card debt or other lines of credit open however and no existing mortgages.



What will the bank think when they see my debt service limit and gross debt service ratio are both zero essentially. Will I be eligible for some sort of rental offset policy if I produce a portfolio highlighting positive cash flow? I don't imagine this will be an easy obstacle to clear and I am in the position where I have done my research on particular areas and am ready to pinpoint properties that fall within a reasonable cash flow zone and conduct my due diligence. I understand it may be too soon to be thinking of a banker but this is a problem that I need to solve sooner rather than later. Any help is appreciated. Also recommendations regarding a mortgage broker within the Nanaimo/BC area is welcomed

 

[housingrental]

You will need some down payment, and be hit with a big premium on interest rates

Your best bet is to talk to a mortgage broker and see if your parents (or other family, etc..) are agreeable to act as co-signers on mortgage with you

 

[abasmaci]

That's what I thought, thanks for the confirmation!



Ali Basmaci

 

[RobMacdonald]

All lenders will use some form of room and board factor when underwriting. So effectively you will need some income to apply.



The other thing they will look at is what happens if there is a vacancy. So if you have low income and expenses, they will want to see some cash reserves that could cover the payment.



What you should look at doing is partnering with someone that can assist in qualifying. Qualifying is one thing, but where are the funds for the downpayment coming from?

 

[Howell]

Hi,

You will need some down payment and be hit with a big premium on interest rates.Your best bet is to talk to a property broker and see if your parents or other family, etc, are agreeable to act as co-signers on property with you..

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