Frequently Asked Questions

A mortgage broker acts as an intermediary between borrowers and lenders. Unlike banks, brokers work with multiple lenders, allowing them to shop around for the best rates and terms for your specific situation. Brokers have expertise across various loan programs and can often find solutions for borrowers who don't fit traditional bank criteria. Banks, meanwhile, primarily offer their own mortgage products. Using a broker can save you time and money by comparing options you wouldn't have access to on your own.

Most lenders use two ratios: your Gross Debt Service (GDS) ratio (housing costs should be about 32% of gross income) and Total Debt Service (TDS) ratio (all debt should be about 40% of gross income). Your specific approval amount depends on factors like your income, credit score, employment history, existing debts, down payment, and the property value. David can provide a pre-approval analysis to give you a specific number based on your financial situation, which helps you shop with confidence.

A pre-approval is a preliminary assessment of how much you can borrow based on your financial information. It's not a guarantee but gives you a clear budget before house hunting. Pre-approval is important because: it shows sellers you're a serious buyer, it saves time by confirming your buying power, it identifies any potential issues with your application early, and it often comes with a rate hold (usually 120 days). Getting pre-approved is a smart first step in the home-buying process.

Typical documents include: two years of personal tax returns, recent pay stubs and employment letters, last two months of bank statements, proof of down payment source, credit report authorization, identification, and property documents (purchase agreement, property appraisal, inspection report). Self-employed borrowers need additional documentation like financial statements and business tax returns. David will provide you with a complete checklist specific to your situation and can explain why each document is needed.

Typically, the mortgage process takes 30-45 days from application to closing. Pre-approval can happen within days, but the full process includes property appraisal, final inspection, title search, underwriting review, and final approval. Having all documentation ready, a responsive property appraisal, and clear credit history can speed things up. In some cases, it can be completed in as little as 14-21 days. David manages the timeline and keeps you informed at every stage.

Yes, Canadians can purchase property in the USA. You don't need to be a US citizen or have a US Social Security Number, though you will need an Individual Taxpayer Identification Number (ITIN). Requirements vary by state and property type. As a Canadian buyer, you may face challenges like proof of funds, larger down payment requirements (often 25-50%), or needing a US co-signer. David specializes in cross-border financing and can navigate these requirements to secure the best terms for Canadian buyers investing in US properties.

DSCR stands for Debt Service Coverage Ratio. A DSCR loan is designed for investment properties and allows lenders to evaluate a property's cash flow rather than just personal income. The lender looks at whether the property's rental income (or business income) can cover the debt payments. DSCR loans are popular for real estate investors and business owners because they focus on the property's profitability rather than personal tax returns. Interest rates are typically higher than traditional mortgages, but they offer flexibility for investors with strong properties but variable personal income.

Most US lenders require a minimum credit score of 620-640 for conventional financing, but competitive rates typically require scores of 740 or higher. If you have a lower score, you may still qualify for loans but at higher rates, or you might need a larger down payment. As a Canadian, you may not have a US credit history, which can complicate things. David can help establish US credit or find lenders experienced with foreign national borrowers. Your specific situation will determine what score is needed.

While not strictly required, having a US bank account makes the mortgage process smoother, especially for payments and managing US property expenses. Most US lenders prefer it for easier payment processing. However, it's not a deal-breaker—many Canadian buyers successfully finance US properties without an existing US account. You can often open one after your offer is accepted or during the mortgage process. David can advise on whether it's necessary for your specific situation and can recommend lenders flexible on this requirement.

Foreign national mortgage rates are typically higher than rates offered to US citizens or permanent residents because lenders view them as higher risk. The difference is usually 0.5-2% higher depending on the lender, property, and down payment. Factors affecting your rate include: down payment size (larger is better), loan amount relative to property value, credit history, type of property, and the lender's foreign national program. David's extensive network includes lenders specializing in foreign national financing and can help you secure the best available rates for your situation.

Yes, many borrowers can qualify through alternative lenders or mortgage brokers even after bank rejection. Banks have strict criteria and limited programs, but other lenders are more flexible. Being declined by one bank doesn't mean all options are closed. Reasons for decline might be solvable (like adding a co-signer, improving credit, or increasing down payment). David can analyze why you were declined and explore alternative solutions, including private lending or specialized programs designed for challenging situations. Don't give up—there are often solutions available.

Self-employed borrowers face more documentation requirements but have several options. Lenders typically want 2 years of tax returns, business financial statements, and sometimes personal financial statements. Some options include: traditional mortgages from lenders experienced with self-employed borrowers, bank statement loans (based on 12-24 months of bank statements), asset-based lending, or alternative programs. Having consistent income, lower debt, and a healthy business are key. David specializes in working with self-employed clients and knows which lenders are most flexible and have the best rates for your situation.

Yes, bruised credit doesn't automatically disqualify you. What matters is your credit score, the reason for the damage, and how recent it is. Late payments, collections, or bankruptcies will impact your rate and approval odds, but they're not permanent barriers. Time heals credit—the longer ago the issues occurred, the better. Lenders consider the whole picture: your current income, employment stability, down payment, and whether you've rebuilt credit since the damage. David can present your situation strategically to lenders and often find programs designed for borrowers with credit challenges.

Private lending is a non-traditional financing source where individuals or private companies lend money for real estate purchases. Private lenders focus on the property value rather than personal credit or income, making them ideal for borrowers who don't qualify for traditional mortgages. Private loans typically have higher interest rates (8-15%), shorter terms (6 months to 3 years), and larger down payments (30-50%). They're useful for urgent situations, investment properties, bridging gaps, or when traditional financing isn't available. David can connect you with reputable private lenders if this is the right solution for your situation.

Employee relocation financing provides streamlined mortgage solutions for employees transferring within Canada or from Canada to the USA. These programs typically offer: accelerated approval timelines, flexibility with employment verification (since you have a job offer), bridge financing to cover gaps between home sales, and sometimes employer partnership benefits like rate discounts. Lenders understand you're a lower-risk borrower due to job stability. David has relationships with lenders offering specialized relocation programs and can often get you faster approval and better terms than standard mortgages.

Many employers offer relocation assistance programs that can include down payment assistance, bridging loans, tax grossing-up, or direct mortgage support. Some companies partner with mortgage brokers to provide discounted rates for relocating employees. Ask your HR department about relocation benefits—many companies offer these to attract and retain talent. If your employer participates in a program, David can coordinate with them to maximize the benefits. Even if direct assistance isn't available, having an employer relocation offer strengthens your mortgage application significantly.

Relocating from Canada to the USA involves special considerations: you'll need US financing (not Canadian mortgage assumption), establishing US credit history and an ITIN, and understanding state-specific requirements. Timeline is critical—you'll want pre-approval before or immediately upon job offer. David specializes in this exact scenario and can guide you through US financing options, help establish US credit quickly, navigate the differences between Canadian and US mortgages, and coordinate with your employer's relocation program. Starting the mortgage process early in your relocation planning is essential.