Introduction

Saving for a down payment is often one of the most challenging steps in the home-buying process. In Canada, especially in competitive markets like Ontario, having a solid down payment can make a significant difference in your mortgage terms and the properties you can afford. This post will explore traditional and creative ways to save money for a down payment, including side jobs and government incentives.

Traditional Saving Strategies

• Budgeting: Creating a detailed budget helps you identify areas where you can cut expenses and allocate more funds to your down payment savings.
• Automatic Savings: Set up automatic transfers to a dedicated savings account to make saving a consistent habit.
• Investing: Consider low-risk investment options that align with your timeline for buying a home.

Creative Saving Strategies

• Side Jobs and Gig Economy: Explore opportunities for part-time work or freelance projects that match your skills and interests.
• Renting Out Space: If you have extra space in your home or property, consider renting it out for short-term stays or storage.
• Selling Unwanted Items: Declutter and sell items you no longer need through online marketplaces or garage sales.

Utilizing Government Programs and Incentives

• Home Buyers’ Plan (HBP): This Canadian program allows you to withdraw up to $35,000 from your RRSPs tax-free to buy or build a qualifying home.
• First-Time Home Buyer Incentive: This incentive helps reduce monthly mortgage payments without adding to your down payment, making homeownership more accessible.
• Land Transfer Tax Rebates: In Ontario, first-time homebuyers may be eligible for rebates on land transfer taxes, freeing up funds for the down payment.

Side Jobs and Gig Economy Opportunities

• Freelancing: Platforms like Upwork and Fiverr offer opportunities to take on freelance projects in areas like writing, design, and programming.
• Ride-Sharing and Food Delivery: Companies like Uber and DoorDash offer flexible earning opportunities for drivers.
• Pet Sitting and Dog Walking: If you love animals, consider offering pet care services in your community.

Conclusion

Saving for a down payment requires planning, discipline, and sometimes a bit of creativity. By exploring various strategies, including side jobs and government incentives, you can accelerate your savings and move closer to your dream of homeownership in Ontario. Working with a mortgage agent can also provide personalized guidance and support tailored to your unique situation.

Overview of the Niagara Real Estate Market

The Niagara Region, known for its stunning landscapes and vibrant communities, has become an increasingly attractive destination for homebuyers. Its real estate market offers a diverse range of properties, from charming historical homes to modern condominiums. This post will explore the current trends, forecasts, and tips for buying and selling in the Niagara Region.

Trends and Forecasts

• Growing Demand: The Niagara Region has seen a surge in demand, driven by its affordability compared to larger cities like Toronto, appealing lifestyle, and investment opportunities.
• Price Trends: While prices have been on the rise, Niagara still offers value compared to other parts of Ontario. Keep an eye on market reports and work with local professionals to understand pricing in specific neighborhoods.
• New Developments: Various new residential and commercial developments are underway, reflecting confidence in the region’s growth and potential.

Tips for Buying in the Niagara Region

• Understand Your Needs: Whether you’re looking for a family home, investment property, or vacation retreat, clarify your goals and preferences.
• Work with Local Experts: Engage with real estate agents and mortgage agents familiar with the Niagara market. They can provide insights, negotiate on your behalf, and guide you through the process.
• Consider the Community: Explore different communities within the region to find the one that aligns with your lifestyle, amenities, and future plans.
• Inspect and Evaluate: Don’t skip the home inspection, and consider factors like property condition, potential renovations, and resale value.

Tips for Selling in the Niagara Region

• Price It Right: Work with a real estate agent to determine a competitive price based on recent sales and current market conditions.
• Stage and Present: Enhance your property’s appeal through staging, cleaning, and minor repairs. First impressions matter!
• Market Effectively: Utilize online listings, social media, and traditional marketing channels to reach potential buyers.
• Negotiate Wisely: Be prepared to negotiate offers and work with your agent to navigate the closing process smoothly.

Conclusion

The Niagara Region’s real estate market offers exciting opportunities for both buyers and sellers. By understanding the trends, working with local professionals, and considering individual needs and goals, you can make informed decisions that align with your real estate aspirations in this beautiful part of Ontario.

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Introduction to Mortgages

Mortgages are a common way for Canadians to finance the purchase of a home. In Ontario, the mortgage landscape offers various options to suit different needs and preferences. This blog post will explore the basics of mortgages, the different products available, and provide tips for first-time homebuyers in Ontario.

Different Types of Mortgage Products Available in Ontario

1. Fixed-Rate Mortgages: This type of mortgage offers a fixed interest rate for a specific term, providing stability and predictability in your payments.
2. Variable-Rate Mortgages: With a variable-rate mortgage, the interest rate may fluctuate based on market conditions, potentially offering savings if rates decrease.
3. Hybrid Mortgages: Combining features of both fixed and variable rates, hybrid mortgages offer flexibility and can be tailored to individual needs.
4. Open and Closed Mortgages: Open mortgages allow for extra payments without penalties, while closed mortgages may have restrictions on additional payments but often come with lower rates.

How to Choose the Right Mortgage for Your Needs

• Assess Your Financial Situation: Consider your income, expenses, credit score, and long-term financial goals.
• Consult with a Mortgage Agent: Professionals like mortgage agents in Ontario can provide personalized advice and help you navigate the various products and lenders.
• Consider the Term and Amortization Period: The term is the length of time you commit to the mortgage rate, lender, and conditions. The amortization period is the total time it takes to pay off the mortgage. Both factors should align with your financial plan.
• Think About Prepayment Options: If you plan to make extra payments, consider a mortgage that offers flexibility in prepayments without penalties.

Tips for First-Time Homebuyers

• Save for a Down Payment: The larger the down payment, the less you’ll need to borrow. Consider utilizing the Home Buyers’ Plan (HBP) in Canada to access RRSP savings.
• Get Pre-Approved: Pre-approval gives you an idea of how much you can afford and shows sellers that you are a serious buyer.
• Work with Professionals: Engage with a real estate agent and mortgage agent who understand the local market and can guide you through the process.
• Consider Closing Costs: Don’t forget about additional expenses like land transfer taxes, legal fees, and inspection costs.

Conclusion

Understanding mortgages is essential for making informed decisions when buying a home. By exploring different mortgage products, consulting with professionals, and considering your unique financial situation, you can find the right mortgage that aligns with your goals and needs.

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Published by DLC marketing Team.

When it comes to purchasing a home, most offers include conditions or subjects, which are requirements or criteria to be met before the sale can be finalized and the property is transferred. Some of the most common subjects include:

• Financing approval
• Home inspection
• Fire/home insurance protection
• Strata document review if applicable

The purpose of these subjects is to protect the buyer from making a poor investment and ensure that there are no hidden surprises when it comes to financing, insurance, or the state of the property.

These conditions are written up in the purchase offer with a date of removal. This is agreed to by the seller before the sale is finalized. Assuming the subjects are lifted by the date of removal, the sale can go through. If the subjects are not lifted (perhaps financing falls through or something is revealed during the home inspection), the buyer can waive the offer and the purchase becomes void.

However recently, especially in heightened housing markets, there has been an emergence of subject-free (or condition-free) offers. These are purchase offers that are submitted without any criteria required! Essentially, what you see is what you get.

Below we have outlined the impact of subject-free offers on both buyers and sellers to help you better understand the risks and outcomes:

Pros of Subject-Free Offers

• Buyers: The main benefit of a subject-free offer for a buyer is the ability to “beat the competition” in a heated market. However, it is not without risks.
• Sellers: Typically, a subject-free offer will include a competitive price, willingness to work with the dates the seller prefers, and evidence that the buyer has already done as much research as possible. If time is sensitive for the seller because they are trying to purchase another home or want to move as soon as possible, they may also choose your offer over subject offers to expedite the process.

Cons of Subject-Free Offers

• Buyers: As a buyer submitting a subject-free offer, you are assuming a great deal of risk in several areas including financing, inspection, and insurance:
  • Financing: While buyers may feel that they have a pre-approval and so they don’t require a subject to financing, it is important to recognize that a pre-approval is not a guarantee of financing. If you are submitting a subject-free purchase based on a pre-approval, buyer beware. The financing is subject to the lender approving the property and the sale; from the price and location to type of property or other variables the lender deems important. By submitting a subject-free offer without a financing guarantee (or an inspection, title check, etc.), there is a risk that the deal can fall through. Even when you do not include subjects on the offer, you still are required to finance your purchase. In addition, as deals are submitted typically with a deposit, there is a risk that if the subject-free offer falls through the buyer will lose their deposit. This amount can range vary in the thousands and is typically a percentage of the purchase price or down payment.
  • Inspection & Insurance: If a buyer is also opting to skip the home inspection and home insurance protection subjects to have the offer accepted, then they assume huge risk as they do not know what they are getting and whether or not the property is up to code for insurance.
  • Due Diligence: With subject-free offers, there is no opportunity for due diligence after the offer has been made. This requires the buyer to do all their research before their initial bid. Because it is firm and binding, a buyer who decides to back out will likely be met with serious legal ramifications. Submitting an offer without subjects is not due diligence and it is at the buyer’s behest.
• For Sellers: When it comes to the individual selling the property, there is less risk with subject-free offers but not zero. While the benefit is essentially there is no wait to accept the offer on the seller’s side, they do not know for sure if financing will come through.

Financing Around Subject-Free Offers

When submitting a subject-free offer, it is essentially up to the buyer to do as much due diligence as possible before submitting. They will need to identify what the lender is looking for to make sure they walk away with a mortgage. Though approval is never certain, prospective buyers placing a subject-free offer should do their very best to secure financing beforehand.

Contractual Obligations

Be mindful when it comes to purchasing offers versus purchase agreements. While your purchase offer is a written proposal to purchase, the purchase agreement is a full contract between the buyer and seller. The purchase offer acts as a letter of intent, setting the terms you propose to buy the home. If financing falls through, for example, then the contract is breached and this is where the buyer may lose the deposit.

It is also important to be aware of a breach of contract in the event that a seller chooses to take action. For example, if you submit a subject-free offer of $500,000 and cannot secure financing for that offer and the seller turns around and is only able to get a $400,000 deal with another buyer, they could potentially sue the initial buyer for the difference due to breach of contract.

Preparing a Subject-Free Offer

If you have decided to go ahead with a subject-free offer, regardless of the risks, there are some things you can do to mitigate potential issues, including:

• Get Pre-Approved: Again, this is not a guarantee of financing when you do make an offer, but it can help you determine whether you would be approved or not.
• Financing Review: Identify what the lender is looking for to make sure they walk away with a mortgage. Though approval is never certain, prospective buyers placing a subject-free offer should do their very best to secure financing beforehand.
• Do Your Due Diligence: Look into the property and determine if there have been major renovations or a history of damage. This could come in the form of a Property Disclosure Statement. While this statement cannot substitute a proper inspection, it can help identify potential issues or areas of concern. If possible, conduct an inspection before submitting your bid/offer.
• Get Legal Advice: This can help you determine your potential risk and ramifications of the offer should it be accepted, or otherwise.
• Title Review: Be sure to review the title of the property.
• Insurance: Confirm that you are able to purchase insurance for the home. Keep in mind, an inspection may be required for this but in some cases, you can substitute for a depreciation report if it is recent.
• Strata Documents (if applicable): Thoroughly review strata meeting minutes and any related documents to determine areas of concern.

While there are things that can be done to help with subject-free offers, it is still risky. Ultimately submitting an offer with subjects gives you the time and ability to gather information on the above, as well as access to the property or home for inspections.

If you are intent on submitting a subject-free offer, be sure to discuss it with your real estate agent as they can determine if a subject-free offer is necessary, or if perhaps a short closing window would suffice to seal the deal. A good realtor will keep you informed of potential interest and other bids during the process as well. Their goal should be to maximize your opportunity and minimize your risk. In addition, before making any offers, be sure to check with your DLC mortgage expert to discuss your mortgage and financing so you can make the best decision.

Published by DLC Marketing team.

With interest rate hikes on pause, more buyers are coming off the sidelines and looking to enter the market. Prices are high, so protecting your investment and your home is more important than ever.

What insurance will you need to protect your new home? A quick Google search will turn up entries for title insurance, as well as for home insurance. They each protect consumers, but from very different things.  Here’s a quick breakdown on each type of insurance and why properly protecting yourself takes both:

title insurance

WHAT IS TITLE INSURANCE?

Title insurance protects your right to own your property. It deals with hidden issues your home may have, as well as future risks like fraud. This is just some of what title insurance covers:

• Title defects that can keep you from selling,
• Title fraud and home title theft,
• Encroachment and access issues,
• Tax arrears and unpermitted work from previous owners.

Want to know more about title insurance coverage?

HOW MUCH IS TITLE INSURANCE?

You only pay once for title insurance, usually between $150—$800, depending on where your home is and how much you bought it for. There are no monthly or annual payments, and your coverage lasts for as long as you or your heirs have an interest in the property.

home insurance

WHAT DOES HOME INSURANCE COVER?

Home insurance covers four main things:

• Damage to your home or other structures on the property,
• Lost, damaged or stolen valuables, depending on your policy,
• Liability for accidents or injuries that happen on your property,
• Losing use of your home because of an event covered by your home insurance (usually to do with damage to the home).

HOW MUCH IS HOME INSURANCE?

It varies, but the average cost for home insurance in Canada is currently a little less than $1,000 per year.¹ Your cost can change from year to year if you switch providers or update your coverage. Many home insurance policies also give you the option to purchase additional coverage, like flood protection, which increases your premiums.

which do you need, home insurance or title insurance?

They cover very different things, so you need both. It’s the only way to protect both your home itself and your ownership of it.

• Title insurance doesn’t cover most property damage, lost or stolen items, or medical/injury liability.
• Home insurance doesn’t cover fraud, back taxes, or the City forcing you to alter or remove structures on your property.

EXAMPLE OF A TITLE INSURANCE CLAIM

A north Ontario homeowner and her neighbour had discovered that her water and sewage lines didn’t connect to her street. Instead, they connected to the next street over via her neighbour’s property. They forced her to relocate her water and sewer lines at huge expense.

But fortunately, she had a title insurance policy in place with FCT. We stepped in to resolve the issue for her, and we were able to cover the full cost of moving her water and sewer lines.

Paid: $115,284.32

Without title insurance, where would the homeowner in that case have come up with $115,000? The risks title insurance protects you from are unpredictable and can be hugely expensive. If you don’t have title insurance and home insurance, the truth is that you’re at risk.

how can you get protected?

You can get title insurance coverage, even if you already own your home with an existing homeowner’s policy. But the best time to start protecting your new home is while you’re purchasing it. Talk to your lawyer or notary about title insurance from FCT, or learn more about residential title insurance here.

Welcome to my blog! As a mortgage agent, we understand the significance of interest rates when it comes to your mortgage payments. In this article, we will explore how interest rates can impact your monthly payments and offer valuable insights to help you navigate through this aspect of homeownership. So, let’s dive in!

Interest rates play a crucial role in determining the cost of borrowing for your mortgage. They directly affect your monthly mortgage payments, the total amount you’ll pay over the life of the loan, and even your ability to qualify for a mortgage in the first place. Understanding the impact of interest rates is vital for making informed decisions and maximizing your financial well-being.

One of the primary factors that influence interest rates is the overall state of the economy. When the economy is strong and healthy, interest rates tend to rise. Conversely, during economic downturns, rates often decline. This is because lenders adjust rates to reflect the level of risk associated with lending money. Keeping an eye on economic indicators can help you gauge the direction of interest rates.

Timing is crucial when it comes to applying for a mortgage. Interest rates can fluctuate frequently, sometimes even daily. It’s essential to monitor interest rate trends and aim to lock in a rate when it’s favorable. By working closely with a knowledgeable mortgage agent, you can gain access to the latest rate information and make an informed decision about the ideal time to secure your mortgage.

Taking advantage of a low-interest rate environment can have a significant impact on your mortgage payments. Even a slight decrease in interest rates can lead to substantial savings over the life of your loan. For example, on a $300,000 mortgage, a 0.5% decrease in interest rate could save you thousands of dollars in interest payments over a 30-year term. Exploring refinancing options when rates drop can be a smart financial move.

To ensure that you get the best possible interest rate on your mortgage, there are steps you can take. Firstly, maintain a good credit score as it has a direct impact on the interest rate you’ll be offered. Secondly, provide a larger down payment if you can, as this reduces the lender’s risk and may result in a lower interest rate. Lastly, working with an experienced mortgage agent can help you navigate the complexities of the mortgage process and find the most competitive rates.

In conclusion interest rates are a vital aspect of the mortgage process, and understanding their impact on your monthly payments is essential for financial planning. By staying informed about economic indicators, timing your mortgage application strategically, and leveraging a low-interest rate environment, you can save significant amounts of money over the life of your loan. Remember to consult with a trusted mortgage agent who can guide you through the process and help you secure the best possible interest rate for your mortgage.

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Published by the DLC Marketing team.

While not the only factor to look at when choosing a mortgage, interest rates continue to be one of the more prominent decision criteria with any mortgage product. Understanding how mortgage rates are determined and the differences between your typical fixed-rate and variable-rate options can help you make the best decision to suit your needs.

HOW RATES ARE DETERMINED

The  chartered  banks  set  the  prime-lending  rate  (the  rate  they  offer  their best customers). They base their decisions on the Bank of Canada’s overnight rate, because that’s the rate that influences their own borrowing. Approximately  eight  times  per  year,  the  Bank  of  Canada  makes  rate announcements that could affect your mortgage as variable  mortgage  rates  and  lines  of  credit  move  in  conjunction with the prime-lending rate. When it comes to fixed-rate mortgages, banks  use  Government  of  Canada  bonds. In the bond market, interest rates can fluctuate more often and can provide clues on where fixed mortgage rates will go next.

To put it simply: a variable-rate is based off of the current Prime Rate, and can fluctuate depending on the markets. A fixed-rate is typically tied to the world economy where the variable rate is linked to the Canadian economy. When the economy is stable, variable rates will remain low to stimulate buying.

FIXED-RATE VS. VARIABLE-RATE

Fixed-Rate Mortgage

First-time homebuyers and experienced homebuyers typically love the stability of a fixed rate when just entering the mortgage space.

The pros of this type of mortgage are that your payments don’t change throughout the life of the term. However, should the Prime Rate drop, you won’t be able to take advantage of potential interest savings.

Variable-Rate Mortgage

As mentioned, variable-rate mortgages are based on the Prime Rate in Canada. This means that the amount of interest you pay on your mortgage could go up or down, depending on the Prime. When considering a variable-rate mortgage, some individuals will set standard payments (based on the same mortgage at a fixed-rate). This means that, should Prime drop and interest rates lower, they would end up paying more to the principal as opposed to paying interest.

If the rates go up, they simply pay more interest instead of direct to the principal loan.

Other variable-rate mortgage holders will simply allow their payments to drop with Prime Rate decreases, or increase should the rate go up. Depending on your income and financial stability, this could be a great option to take advantage of market fluctuations.

Want to learn more about rates or need mortgage advice? Contact a DLC mortgage expert today!

Published by FCT.

It’s not just Ontario: title fraud cases are on the rise in B.C. as well. Daniela DeTommaso, President of FCT, recently sat with Weekend Mornings with Stirling Faux on 980 CKNW to discuss the rising threat.

“[Fraud has become] so sophisticated,” Daniela explains. “If you were to look at some of the [forged] identification that’s being used, an untrained person would never be able to tell the difference.”

Protecting consumers comes down to two things: detection and coverage. “As a title insurance company, not only are we there to protect you […], but our biggest goal is to prevent these things from ever happening,” says Daniela.

When it comes to protecting their property, many homeowners are used to relying on their home insurance. But it can’t protect them from title or mortgage fraud.

what’s the difference between home insurance and title insurance?

Home insurance covers you for things that can happen to/on your property such as:

• Damage to the home or other structures
• fire and flood
• medical liability
• damaged or stolen items

It protects the parts of your property you can touch—structures and items. But that’s only half of the story.

Title insurance protects the part of your property you can’t touch—your right to own it. That right is called your “title,” and if your title is defective, you can’t leverage your home equity or sell the property. There are many risks title insurance can cover, but one of the most damaging is the risk of someone stealing your right to ownership.

TITLE FRAUD

Title fraud is when someone impersonates a property’s owner, then either takes equity out or sells it. If someone registers a fraudulent mortgage on your property, it can cost tens of thousands in legal fees to repair your title, and you can’t sell or leverage your home until you do.

In B.C., if your home is fraudulently sold to an innocent buyer, they get to keep it. Without title insurance, you could lose your home and your equity, with no way to recoup your loss. Title fraud is a real danger, and home insurance can’t protect you from it.

how title insurance protects homeowners and homebuyers

A title insurance policy can cover your losses from losing the insured property, and also carries with it a duty to defend. “We have to pay any legal fees incurred in the course of trying to rectify the problem,” says Daniela. “We are someone to hold your hand through that process, and […] indemnify you against any [covered] loss or damage.”

how do i know if i have title insurance?

Most people with title insurance purchased it during closing. It’s a one-time premium, so there aren’t monthly insurance payments to remind you of your policy. Consult your closing documents and check for an owner’s title insurance policy—you’ll likely see a lender’s title policy, which unfortunately isn’t the same thing.

If you don’t find an owner’s policy, you can reach out to the title insurer who provided your lender policy. They’ll be able to tell you if you have owner’s coverage.

IF I DIDN’T BUY TITLE INSURANCE DURING CLOSING, IS IT TOO LATE?

No, it’s not too late. You can purchase title insurance no matter how long you’ve owned your home. For a one-time premium, you get coverage that protects you for as long as you have an interest in the property. It can also transfer to your spouse or heirs if they take ownership.

Your home is your biggest investment—don’t leave it at risk. Protect yourself now with an existing homeowner’s title insurance policy from FCT.

Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.

®Registered Trademark of First American Financial Corporation.

Published by HomeEquity Bank.

Do you need help to meet your retirement income needs? With rising inflation, accessing sufficient cashflow for your desired lifestyle can be challenging. However, with over 70% of Canadians owning their homes, tapping into home equity can be the cashflow solution you need.

Tapping into Home Equity

If you want to remain in your current home, a home equity line of credit (HELOC) and a reverse mortgage are two of the most popular ways to access your home equity.

Take out a HELOC. HELOC lenders typically allow you to access up to 65% of the value of your home. You can borrow money as needed (based on an agreed-upon amount) and are only required to make minimum monthly interest payments on the amount taken out. Unlike traditional mortgages, there is no obligation to make scheduled payments towards the line of credit, and you have the freedom to repay the line of credit at your convenience.

Get a reverse mortgage. Another way to access the equity in your home is through a reverse mortgage. If you’re a Canadian aged 55 or better, the CHIP Reverse Mortgage by HomeEquity Bank allows you to access up to 55% of your home’s value and turn it into tax-free cash. There are no monthly mortgage payments while you live in the home; the full amount only becomes due when you move or sell your home. You can receive the funds as a lump sum or in regular monthly deposits. You can use the cash for any financial needs, including health care costs, home renos, debt consolidation or lifestyle expenses.

Advantages of a reverse mortgage

One of the biggest advantages of the CHIP Reverse Mortgage is that there are no monthly payments, but there are many more! Here are some of the other benefits of the CHIP Reverse Mortgage:

• Simplified underwriting. The proceeds of the CHIP Reverse Mortgage are not based on income but on your age and the value of your residence.
• No need to requalify. A regular HELOC from a bank may subject the borrower to continuous credit score checks over time, affecting the ability to access a HELOC when needed.
• Spousal impact. The death of a spouse does not affect a reverse mortgage, unlike a HELOC, which may trigger the bank to review the credit score and income of the surviving spouse.
• Rate stability. For fixed-rate terms, the reverse mortgage rate remains locked for the term, while HELOC rates fluctuate with the Bank of Canada’s prime rate, potentially increasing borrowing costs.

Contact your Dominion Lending Centres mortgage expert to learn how the CHIP Reverse Mortgage can help you boost your retirement income.

Published by DLC Marketing team.

Whether you’ve made an offer on a home already or are still in the process of looking, you already understand that buying a home is likely the largest investment you’ll ever make.

When it comes to your mortgage application, there are a few things that you should avoid doing while you’re waiting for approval – such as making large purchases (i.e. a new car), applying for new credit, pulling additional credit reports, etc. Another issue that can come up is the loss of your job.

What you can afford to qualify for in relation to your mortgage depends on your income. As a result, the sudden loss of employment can be quite detrimental to your efforts. So, what do you do?

Should You Continue With Your Mortgage Application?

If you’ve already qualified for a mortgage, but your employment circumstances have changed, your first step is to disclose this to your lender. They will move to verify your income prior to closing and, if they have not been told in advance, it may be considered fraud as your application income and closing income would not match.

In some cases, the loss of your job may not affect your mortgage. Some examples include:

• You secure a new job right away in the same field as previously. Keep in mind, you will still need to requalify. However, if your new job requires a 3-month probationary period then you may not be approved.
• If you have a co-signer on the mortgage who earns enough income to qualify for the value on their own. However, be sure your co-signer is aware of your employment situation.
• If you have additional sources of income such as income from retirement, investments, rentals or even child support they may be considered, depending on the lender.

Can You Use Unemployment Income to Apply for a Mortgage?

Typically this is not a suitable source of income to qualify for a mortgage. In rare cases, individuals with seasonal or cyclical jobs who rely on unemployment income for a portion of the year may be considered. However, you would be asked to provide a two-year cycle of employment followed by Employment Insurance benefits.

What Happens During Furlough?

If you did not lose your job entirely but have instead been furloughed or temporarily laid off, your lender may take a wait-and-see approach to your mortgage application. You would be required to provide a letter from your employer with a return-to-work date on it in this situation. However, if you don’t return to work before the closing date, your lender may be required to cancel the application for now with resubmitting as an option in the future.

Have You Talked to Your Mortgage Professional?

Regardless of the reason for the change in your employment situation, one of the most important things you can do is contact a Dominion Lending Centres mortgage expert directly to discuss your situation. They can look at all the options for you and help with finding a solution that best suits you.