Guest Blog Written By: Chic Mamma & Mortgage Agent Olivia Da Costa
So, you’re pregnant (again!). Time to consider a bigger house, since it’s tight quarters as it is…AND to make matters worse, there is an elephant in the room. You’re about to go on mat leave, so will you even QUALIFY for that new mortgage? Your bank might be telling you no, but fear not!
Working with a broker who is going to educate you on your options is the best place to start. Knowledge is power, after all!
Did you know that only a select few lenders will consider 100% of your employment income while you are on maternity leave? Most will only consider 50%, if any at all. Don’t let that stop you from applying though-your broker has the answers!
Ladies, please also consider taking a longer amortization to reduce your monthly obligation, even if you think you can afford a bigger payment. You will most likely have a 20% pre-payment privilege which will also allow you to increase your regular payments by as much. This is a great strategy for tackling your balance aggressively, but also having a back-up plan to account for life’s little surprises. If you are not looking to buy a new place, but rather, you are planning on staying home with your precious angel after your mat leave ends, a refinance with a longer amortization might be the right move for you. And you might even get a lower interest rate to boot!
For more information on this or any other mortgage related topics feel free to contact Mortgage Agent Olivia Da Costa via email at [email protected] or by phone at 416-252-9000 ext 25.
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