How do lenders determine mortgage amounts?
On Behalf of Porter Ramsay LLP | Apr, 30, 2021 | Real Estate Law
When applying for a mortgage, the lender approves a certain amount based on what the underwriter thinks the applicant can afford. This is true whether one is applying for his or her first mortgage, getting an additional mortgage, or looking to add to the balance through refinancing. British Columbia borrowers can benefit from knowing what lenders are looking for when looking over their application. Some of the numbers lenders look at when approving a mortgage are: Debt to income ratio (DTI) Gross income (pre-tax earnings) Mortgage-to-income ratio (how much gross income is allocated to for housing costs on a monthly... View Article