Unlike our friends to the south who have seen their mortgage market basically implode, Canadian still are afforded considerable choice in all areas of the market.
Because of the stability of the Canadian economy, mortgage lenders continually look at different ways to dissect the market place with different lending products for different risk levels, market areas, and so on.
And with the ongoing support of Canadian Mortgage And Housing (CMHC) along with the two other national providers of insured mortgages, the benefits of home ownership can still be secured by most Canadians.
The key to any type of financing whether it be mortgage financing or something else is cash flow. If you are able to generate a regular, consistent, and predictable monthly income, then there’s a very good chance that there is a residential home mortgage program out there for you. Even where you income is not potentially consistent on a monthly basis such as is the case with the self employed mortgage applicants, there are still solid options available to you in the market.
That being said, if your credit is not up to par, you will have a more limited selection of programs to consider and the cost of financing will likely be higher as you move more towards home equity loan programs. But even then, you still are likely to have options if you have enough cash flow to service the debt which is not always going to be the case south of the border.
Even if your credit is total disarray, pushing you out of the bank and institutional programs that are geared to higher risk lending, there are still private mortgage sources to consider to at least get you started in a home and provide you with time to rebuild your credit which will then allow you to move into a lower cost form of mortgage.
If you do have some challenges in your financial and credit profile, the best things to do if you are seeking a Toronto home mortgage loan is to 1) start the process early and 2) work with an experienced mortgage broker that knows their way around the market and is on top of the different program offerings that are available.