Mortgage Approval

[goodboy97]

how long it takes to approve your mortgage when you have pre approval?

 

[steaky]

It depends on your mortgage specialist and lawyers of both sides. I had mine done about 3 weeks.

 

[Musti82]

how long it takes to approve your mortgage when you have pre approval?

Hello, i work for RBC Royal Bank as a mortgage specialist.

if you already have an approval, it is extremely easy to convert that from pre approval to approval, like less than a day, and then you have to send it for approval, let's add another 2-3 days, but if there is a financing condition we rush it and usually hear literally on the same day or next day.

edit: if the application prompted an appraisal (full) then add maybe another 1-2 days max.

Mustafa

 

[goodboy97]

Hello, i work for RBC Royal Bank as a mortgage specialist.

if you already have an approval, it is extremely easy to convert that from pre approval to approval, like less than a day, and then you have to send it for approval, let's add another 2-3 days, but if there is a financing condition we rush it and usually hear literally on the same day or next day.

edit: if the application prompted an appraisal (full) then add maybe another 1-2 days max.

Mustafa

thanks for your reply. do you know what are the factors are considered in gds ratio? the bank rejected my application due to high gds ratio

 

[Musti82]

thanks for your reply. do you know what are the factors are considered in gds ratio? the bank rejected my application due to high gds ratio

GDS : mortgage payments based on 5.19% (stress test rate) + condo fees(we use 50%) +heating +property taxes.
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gross income

If they declined based on GDS, most likely your TDS (total debt service ratio which is GDS + current liabilities(like loan or current balance) is also high too.

you can always tell me the amounts and i can see what's making it high.

Usually when you put less than 20% the default insurance guidelines are very strict.

credit score less than 680 max TDS/GDS is 40%/32%

more than 680 44%/39%

 

[goodboy97]

GDS : mortgage payments based on 5.19% (stress test rate) + condo fees(we use 50%) +heating +property taxes.
-----------------------------------------------------------------------------------------------------------------------------------
gross income

If they declined based on GDS, most likely your TDS (total debt service ratio which is GDS + current liabilities(like loan or current balance) is also high too.

you can always tell me the amounts and i can see what's making it high.

Usually when you put less than 20% the default insurance guidelines are very strict.

credit score less than 680 max TDS/GDS is 40%/32%

more than 680 44%/39%

Thanks for the info. As of today, I have zero outstanding amount on all of my credit accounts. Besides, I have open credit account of 45K; do you think that might be an issue beyond this decline

 

[Musti82]

Thanks for the info. As of today, I have zero outstanding amount on all of my credit accounts. Besides, I have open credit account of 45K; do you think that might be an issue beyond this decline

the line of credit will have no issue as long as you have no outstanding balance.

other than that, only thing i can think of is:

-low credit score (less than 680)
-variable income (if you're salaried, then i ll use gross income, if you're self employed we need 2 years average. )
-or the amount you want to buy is just out of your budget and qualifying ratio is too high.

 

[goodboy97]

the line of credit will have no issue as long as you have no outstanding balance.

other than that, only thing i can think of is:

-low credit score (less than 680)
-variable income (if you're salaried, then i ll use gross income, if you're self employed we need 2 years average. )
-or the amount you want to buy is just out of your budget and qualifying ratio is too high.

Yes, the explanation the bank provided is the high condo fee

 

[Musti82]

Yes, the explanation the bank provided is the high condo fee

the only thing you can do is either find a place with lower condo fee, or more dowpayment and lower the amount.

condo fees are huge part of the marketability of a place. The higher they are the lower the price of a condo. Unfortunately new builds are super small in size, but they have low maintenance fee.

just to give you an example from Toronto.

Condo 1300 sq feet, low rise , 40-50 units (# of condos) with a maintenance fee of $1300 (almost a mortgage) is $590,000

vs

Condo 1300 sq feet high rise (500-600 units) maintenance fee of $700 price: 1,250,000

 

[goodboy97]

the only thing you can do is either find a place with lower condo fee, or more dowpayment and lower the amount.

condo fees are huge part of the marketability of a place. The higher they are the lower the price of a condo. Unfortunately new builds are super small in size, but they have low maintenance fee.

just to give you an example from Toronto.

Condo 1300 sq feet, low rise , 40-50 units (# of condos) with a maintenance fee of $1300 (almost a mortgage) is $590,000

vs

Condo 1300 sq feet high rise (500-600 units) maintenance fee of $700 price: 1,250,000

Thanks a lot, i have sent you something in your inbox. would you mind to check it.

 

[goodboy97]

It depends on your mortgage specialist and lawyers of both sides. I had mine done about 3 weeks.

Thanks a lot for your reply.

 

[Tonima]

Hello, i work for RBC Royal Bank as a mortgage specialist.

if you already have an approval, it is extremely easy to convert that from pre approval to approval, like less than a day, and then you have to send it for approval, let's add another 2-3 days, but if there is a financing condition we rush it and usually hear literally on the same day or next day.

edit: if the application prompted an appraisal (full) then add maybe another 1-2 days max.

Mustafa

Hi
So, I wanted to know if the required downpayment for an international student is 25% or 35%? Also, I didnt know that preapprovals required hard credit checks, so does that mean I will be looking at another credit check for the final approval? Doesnt that affect my credit score poorly without reason?
I am working with an advisor who havent given me any answers, i am basically in the dark, and specially the weekend, well it is going horrible so far.
Appreciate any answer. Thanks

 

[Musti82]

Hi
So, I wanted to know if the required downpayment for an international student is 25% or 35%? Also, I didnt know that preapprovals required hard credit checks, so does that mean I will be looking at another credit check for the final approval? Doesnt that affect my credit score poorly without reason?
I am working with an advisor who havent given me any answers, i am basically in the dark, and specially the weekend, well it is going horrible so far.
Appreciate any answer. Thanks

hey sorry just saw the email notice about ur question.
if you're international student 35% is the minimum. they wont give you with less, even small lenders are going to ask 35%, unless you have a full time job and valid work permit you can use your income to qualify then u can put less. Which country are you from? it does matter in some banks certain countries are only allowed for the non resident program.

 

[canuck_in_uk]

Hi
So, I wanted to know if the required downpayment for an international student is 25% or 35%? Also, I didnt know that preapprovals required hard credit checks, so does that mean I will be looking at another credit check for the final approval? Doesnt that affect my credit score poorly without reason?
I am working with an advisor who havent given me any answers, i am basically in the dark, and specially the weekend, well it is going horrible so far.
Appreciate any answer. Thanks

These are fairly basic questions that even a halfway decent mortgage broker could answer. I seriously suggest you find yourself a new broker who actually knows what they are doing.

 

[Tonima]

These are fairly basic questions that even a halfway decent mortgage broker could answer. I seriously suggest you find yourself a new broker who actually knows what they are doing.

The 1st person I went to did a hard credit check without asking me explicitly for permission. I am honestly scared that it will hurt my credit score if rhis hapoens again, hence i am here.