Residential Mortgage

Understand what lenders are looking for

Lenders look at a few different factors when you apply for a mortgage. Their goal is to assess your ability to pay back the loan. Mortgage shopping can be overwhelming and—more importantly—a lot of work. Balzor Singh is experienced in helping prospective homeowners from all backgrounds secure a mortgage that helps make their dreams a reality.

Important considerations

Income and job history

One of the first things that mortgage lenders consider when you apply for a loan is your income. There is no set dollar amount that you need to earn each year to be able to buy a home. However, your mortgage lender does need to know that you have a steady cash flow to pay back your loan.

Credit score

The minimum credit score for a conventional loan is usually 620. For a government-backed loan, you’ll need a credit score of at least 580, but that can vary depending on which loan you choose. A higher credit score can give you access to more lender options and lower interest rates.

Debt-to-income ratio (DTI)

Your DTI is calculated by taking the total of all your minimum monthly debt payments and dividing it by your gross monthly income. Typically, for a conventional mortgage, a DTI of 50% or less is the benchmark – but many government-backed loans will have higher thresholds.

Current assets

Lenders want to know that you have some extra money in the bank when you apply for a loan. This assures the lender that you’ll still be able to make your payments if you run into financial trouble. Your lender will ask to take a look at your assets, which include savings accounts, retirement accounts and taxable investments.

Type of property

Interest rate and buyer requirements vary depending on the type of property you’re after. Keep in mind that not every lender finances every type of property (mobile, manufactured, commercial, etc.).

Frequently Asked Questions

What documents count as proof of income when applying for a mortgage?

Can I get a mortgage if I have a low credit score?

What do I do if my credit score was damaged by a one-time incident?

What will I need to provide lenders as proof of assets and liabilities?

What is the process like for securing a mortgage and buying a home?

Application checklist

When applying for a mortgage, you will need to have the following ready to present to lenders:

Proof of income

Credit documentation

Proof of assets & liabilities

Documentation of your debt-to-income (DTI) ratio

How will lenders decide whether to give me a mortgage?

The following is a list of things lenders consider when assessing your application:

Positive indicators:

Consistent source of income

High credit score

Debt-to-income ratio under 50%

Savings accounts and/or investment accounts

Red flags:

Inconsistent source of income

Low credit score

Debt-to-income ratio over 50%

Few assets such as savings accounts and/or investment accounts

Why work with a mortgage broker to secure your residential mortgage?

Market knowledge

A broker understands the ins and outs of the local market, interest rates and current mortgage trends, meaning they will also know which lenders and mortgage options will be the best fit for you.

Peace of mind

Mortgage shopping can be overwhelming. A mortgage broker can take care of the details while ensuring you understand every step of the process.

Accomplish your goals faster

Working with a mortgage broker means getting advice on setting achievable financial goals and making a solid plan to make them a reality.


Private Lending

Consider options outside of traditional loans.

If you’re unable to secure a mortgage through the usual means, a private lender may be an option.

Learn More

Mortgage Renewals

Save money for what matters most.

Renegotiate your mortgage at renewal to lower your payments and spend more on the things you love.

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First Time Home Buyers

Your first home is not our first mortgage.

If you’re buying a home for the first time, take advantage of our in-depth mortgage experience. And lower rates, of course.

Learn More

Book a zero-cost consultation today

Get a loan, together. Work with Balzor Singh.