Mortgage Tips On Why You May Not Get A Mortgage – TOP 5 LIST!

At Robert Floris’ Mortgage Architects office, we want you to know how a bank thinks so you can better prepare for financing. We really have the objective to educate our clients so they can make a sound decision. We will present these Mortgage Tips with some humour so that we can better illustrate our points.

Mortgage Tips #1: Hey! I have no money.

Well although technically you can borrow the down payment, banks like to see you have some skin in the game. Money is needed beside a down payment for legal costs, moving expenses, appliances and some easy renovations. Bottom line, people with cash, they have something to lose.

Mortgage Tips #2: Your credit just stinks or is non-existent.

My father, who did not believe in credit could not get a mortgage unless he had hordes of cash (we unfortunately did not). Credit scores can be low by having balances near their credit limit. Although you pay the minimum, the bank believes you cannot manage money. Keep the credit checks at a minimum and keep your balance is at 75% of the credit limit.

Mortgage Tips #3: We like you but we don’t like your home!

This is a very important point. Is the home in an industrial area? In 2018, we still have lenders who refuse to provide mortgages near Dofasco. Other reasons are: illegal rooming houses and condos that are mismanaged and don’t have enough funds for repairs. Do you remember in Niagara Falls, New York, the tragedy of the love canal where the land was toxic due to the chemical companies? I used to live on Main Street in Hamilton. It is zoned commercial. Even though it is a house, many banks refused to place a mortgage on it. Do your homework!

Mortgage Tips #4: You’re self-employed.

Throughout my whole mortgage career, it was easy to get financing for the clients who worked for them selves. The Canadian government has really gone after these clients with a vengeance. The Government is looking for tax dollars and they think everybody who works for themselves are hiding cash. If you do not clear enough money and have a two-year average in doing so, good luck getting mortgage financing. This hurts me since my dad was self-employed and worked 15 hours a day. Business owners are the backbone of the Canadian economy.

Mortgage Tips #5: The property’s appraised value is too low.

In today’s market it still happens. Make sure you put in a clause, conditional on financing.

Any questions, please call Robert Floris’s office, no obligation, easy to talk to, honest answers.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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Thanks for reading!