Can You Use a HELOC or Borrowed Money for Your Down Payment in Canada?
Yes, in specific circumstances. Some lenders and mortgage default insurers will accept a HELOC (home equity line of credit) or another borrowed source for part or all of your down payment, but the rules are stricter than for a down payment funded by savings or a gift, and the cost is higher. Pekoe Mortgages is […]
Can You Use the FHSA and Home Buyers’ Plan Together for One Down Payment?
Yes. A first-time buyer can withdraw from both a First Home Savings Account (FHSA) and the Home Buyers’ Plan (HBP) to fund the same home purchase, and for a couple who both qualify, the combined room is substantial. Pekoe Mortgages is a licensed brokerage, FSRA Licence #13321 in Ontario and RECA licensed in Alberta, and […]
Gifted Down Payment Rules in Canada: What Lenders Actually Require
Yes, you can use a gift from an immediate family member for your down payment. But lenders need proof it is a genuine gift, not a loan. Pekoe is a licensed mortgage brokerage serving Ontario and Alberta, FSRA Licence #13321 in Ontario and RECA licensed in Alberta. We help first-time buyers work through gifted down […]
How Lenders Count Bonus, Commission, and Overtime Income
Lenders generally average your bonus, commission, or overtime income over the past two years, then use that average only if the trend is stable or rising. If your variable pay has been dropping, most lenders will use the lower figure instead of the average, or in some cases leave it out of your qualifying income […]
The Appraisal Came in Low After You Waived Your Financing Condition: What Now?
You won the bid by waiving your financing condition, and then the appraisal came in below your purchase price. Your offer is firm, so you cannot walk away over financing. You need to cover the gap to close, and you need to do it quickly. This is a moment many Canadian buyers panic over in […]
Changing Jobs Before Your Mortgage Closes: What You Need to Do
A job change between your mortgage approval and your closing date does not automatically cancel your deal. What causes trouble is staying quiet about it, or accepting a role that looks riskier to a lender than the one you qualified with. Lenders re-verify your employment in the final stretch before funding, and a surprise at […]