Financing

Like any other company, we want to help our customers achieve their dreams.  Sometimes this means hard work for both Imodular Homes Inc., and our clients.  If you are truly interested in buying a home and need us to help you finance your home, then please read on and become educated.

There are several steps to buying a home, but one of the most important is the financing.  So what is required to help you prepare to get financing from a bank for your new home?

Here are a few things to consider when applying for a mortgage:

  1. Down Payment
    • The down payment will normally be 5%-20%
    • 5%-15% is unconventional meaning it must be covered by Insurance CMHC.
    • 20% is now considered a conventional mortgage and does not require CMHC.
    • CMHC  (Canadian Mortgage and Housing Corporation)  www.cmhc.ca
  2. Credit Rating or Score
    • Your credit score will be used for the mortgage application.
    • Insure a score of not less than 680 for credit score.
    • To assist you, go to Equifax for your free credit report.   www.equifax.ca
  3. Liabilities
    • Monthly expenses heat, hydro, credit cards, gas, car loans, etc.
  4. Revenue
    • Monthly revenue house hold income or your income per month
  5. TDS vs GDS
    • TDS  Total Debt service, normally banks are looking for 40% or less
    • GDS  Gross Debt Servie, normally banks are looking for 32% or less
    • GDS and TDS are service ratios, meaning can you comfortably service the mortgage.
  6. Job part-time vs full time
    • Full time jobs are considered a plus in the banking world, the longer the better.
    • Part-time jobs are not considered a plus but more of a risk to the bank.
  7. NOA
    • NOA, notice of assessment (income tax return), normally 2-3 years are required.
  8. Price of Home
    • Make sure you can comfortably afford the home, don’t be house poor.
  9. Gift Letter
    • Gift Letter  from a parent or someone willing to give you money unconditionally.
  10. Private Land vs Leased land
    • Private land costs you money and should be evaluated before you buy the home.
    • Leased land you pay a fee to rent the space for the home, like a condo fee.
  11. Type of Home
    • The type of home you are preparing to build will have costs, find out all the costs.