Did you know that qualifying for a mortgage on a condo is slightly different than qualifying for a mortgage on a house?
For a house, your lender will qualify you based on your annual income, the monthly mortgage amount, the monthly municipal tax amount and if it is a high ratio mortgage (if you’re borrowing more than 80% of the sale price), they also take into consideration a monthly heating amount. The house must meet certain physical guidelines. Your credit score and source of down payment are also considerations, as well as debt servicing ratios.
For a condo mortgage, your lender will qualify you based on all of the above criteria, but they must also take into consideration 50% of your monthly condo fees when calculating your Debt Servicing ratios.
Click here to see great mortgage and debt servicing calculators on the CMHC’s website. Try them out!
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg