The 72 month mortgage decline plan

The mortgage decline plan

Have you been a victim of mortgage decline?  Everyone can get a mortgage. I know that is a bold statement, but it’s true.  That doesn’t mean that everyone can buy a house with five per cent down at the best interest rates.  The riskier the transaction, the higher the rate and the more skin in the game you will need.

That being said, the majority of people can get a mortgage in 72 months or less. Some clients are ready immediately and some only need a few months to get their plan together and be ready to buy.  We see clients every day that have lost hope of ever getting a mortgage approval.  A plan will help you from not having a mortgage declined in the future.

The very first step is figuring out where you are with three major components:

Credit

This isn’t a challenge for most Canadians, but there is a percentage of Canadians that have some issues on their credit bureau.  That can be late payments, written off accounts, collections, judgments, credit counseling or bankruptcy.  In 72 months from the date of the last activity of the issue on the credit bureau, it falls off.  Completely!

Income

You need income to be able to afford the mortgage and qualify for an approval.  Stable income for the last three years is ideal.  If you can guarantee a full-time salary then it will require less time.  Exceptions can be made, but why not make it a slam dunk?

Down payment

Imagine if you saved $300 a month for 72 months. That’s over 20k for a down payment and closing costs.  If your employer has an RRSP program, this is a great way to start!  Setting up a direct debit into a TFSA is also a great plan or an individual RRSP.

All that being said, a plan is required and we are great at making a plan to ensure you won’t have a mortgage decline in the future. Contact us to talk about your specific situation and let’s make a plan together!