WHAT LENDERS LOOK AT FOR QUALIFICATION?

1. Down payment.

2. Employment.

3. The property itself (purchase price value has to be supported and the lender has to be satisfied with overall condition of the property).

4. Your credit score along with credit history.  Lenders normally require a minimum credit score of 600.

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Lenders rely on two standard measures of one's "ability to pay" their mortgage: 

1. Gross Debt Service (GDS)

2. Total Debt Service   (TDS)

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GDS is the percentage of your gross income that is required to cover housing costs. 

These costs include the following items:

1. Mortgage payment

2. Property tax payment

3. Heating expenses

4. Strata fees (if applicable)

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TDS is the percentage of your gross income that is required to cover housing costs, plus any additional debt you have.

These costs include the following items:

1. Mortgage payment

2. Property tax payment

3. Heating expenses

4. Strata fees (if applicable)

5. All other debt (ie credit cards, car loans, car leases, lines of credit, mortgage payments, property taxes and strata fees (if applicable) for any additional properties owned.

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The maximum GDS & TDS allowed is based on your credit score as per below:

1. Beacon (credit score) is less than 680       Maximum GDS is 35% / Maximum TDS is 42%

2. Beacon (credit score) is 680 or higher       Maximum GDS is 39% / Maximum TDS is 44%

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If your down payment is 20% or greater, certain lenders may consider a slightly higher Gds/Tds on exception based on your overall application (ie credit and net worth).