Sentences with phrase «ratio on a mortgage application»

Not exact matches

In addition to the loan to value ratio (LTV) of your first mortgage, lenders evaluating a second mortgage application also rely on the combined loan to value (CLTV).

Many conventional mortgage providers evaluate applications through an automated underwriting system which accepts or denies applications based on a number of requirements, which include your credit score, loan - to - value ratio and loan size.

All mortgage applications moving forward will undergo qualifying «Stress Tests» whereby affordability ratios will be calculated based on the Bank of Canada Benchmark rate of 4.65 % to determine if borrowers will be able to afford their mortgage payments in the event of a rate increase.

Depending on income and current liabilities, with applications of less than 20 % down, our lenders will use a conservative qualifying ratio of 35/42 %, whereby up to 35 % of your income is to be used towards the mortgage payment, heating costs, property taxes and / or strata fee payments.

Sometimes they're willing to waive one of the debt ratios, but that's up to the individual lender and they may only be willing to do that if you have a strong mortgage application on paper (i.e. you have a sizable down payment or steady income.)

All mortgage applications received on or after January 10th are required to comply with the QM rule which includes full documentation of income, assets and employment, a maximum of 3 % for points and fees, a cap of 43 % on the back - end debt - to - income ratio, and limitations on the type of mortgage products that qualify and prepayment penalties among other requirements.

The MiMi measures the stability of the nation's housing market by comparing its long - term stable range to current ratios in home purchase applications, debt - to - income ratios, on - time mortgage payments, and employment.