Buying a real estate property can be extremely taxing and sometimes even next to impossible for a single mother. With the introduction of stringent Toronto mortgage rules and regulations, it is now difficult to qualify for a mortgage loan.

Such rules are not only affecting the applicants who are opting buy a new home but also the ones wanting to renew the mortgage. In such an adverse situation, getting approval from the lenders is extremely challenging for a single mother. However, there are many ways where the single mothers can improve their chances of getting their loans sanctioned. Below given are the following tips to qualify for a mortgage loan:

Toronto mortgage

  1. Evaluation of monthly rental

Figuring out how much an individual is spending on her monthly rental is instrumental. According to the Canadian Rental Housing Index, it is seen a single mother can spend up to half or even more than half of her income on paying house rent. Especially, in pricey cities like Toronto, this is a regular thing. This can act as a bonus to get qualified for a mortgage loan. They can show their income certificate to gain trust from the lenders. A stable source of income increases the chance of being eligible for the loan.

  1. Understanding Impact of Divorce on Finance

A single mother needs to furnish additional details in order to qualify for a Toronto mortgage loan. A lender usually asks for documents like separation agreement, financial deal based on the child’s custody, proof of spousal support if any etc. These documents help them the lenders to evaluate a single mother’s financial portfolio based on her separation with her spouse.

  1. Expert Advice is Always a Good Option

Dealing all the hassles single-handedly can be a daunting task. It is always advised to take the aid of experts while dealing with Toronto mortgage loans. They can help individuals to do away with the conundrums. By sharing all the details, the mortgage professionals can review the entire procedure. They take account of factors like budget, crisis, financial goals etc. and provide customized plans to their clients to get qualified for the credit.

  1. Coping with the Stress Test

In Canada, a mortgage stress test is quite difficult to pass. Statistics suggest that the qualifying rate for this test is as meager as 2%. To get through this test, apart from having a stable source of income, a single mother must not have any major debt. Huge debts can act as a deterrent factor to get a loan. Moreover, even if she is qualified for the loan, the lender can impose a higher rate of interest on her.

mortgage in Toronto

  1. Taking Account of Emergency Fund & Other Savings

For those who are salaried employees, their income certificate and company reputation play a major role. However, the ones who are self-employed must produce their budgeting process to get a secured loan. Documents based on RRSPs, child’s post-secondary education, annual savings etc. can help the mothers get the loan.

 

One needs to consider all these points mentioned above to have a hassle-free and convenient loan approval process in Canada