You have your deposit structure all worked out but securing a mortgage pre-approval can be tricky for a number of reasons.
- Lower Income
- Self Employed
- Not enough employment history
- Borrowed too much money already, over leveraged
But you do have options for getting pre-approved. Using a mortgage broker who works with many different lenders oppose to the one lender the builder uses who chances are is one of Canada’s Big-5 that have very strict lending standards. The builder must consent to the use of a mortgage broker, but with builder approval this is a viable option.
Sometimes a builder is satisfied with a “Letter of Commitment”. A letter of commitment is like a less formal mortgage approval. Your bank manager could write you one, if your relationship with the bank is good and long standing one it should not be a problem.
Another option is getting a co-signer. If you can foresee that by the time the condo is finished you will be better off financially then this may be the best option for you. Before the closing date you can remove the co-signer, they would not be responsible for any payments and you still have purchased your condo.