Variable | 2.75% | 2.15% | 0.60% |
1 Year | 3.65% | 2.49% | 1.16% |
2 Years | 3.95% | 2.95% | 1.00% |
3 Years | 4.70% | 3.45% | 1.25% |
4 Years | 5.34% | 4.09% | 1.25% |
5 Years | 5.49% | 3.99% | 1.50% |
6 Years | 6.45% | 5.25% | 1.20% |
10 Years | 6.30% | 4.99% | 1.31% |
15 Years | 7.55% | 6.90% | 0.65% |
25 Years | 8.25% | 7.00% | 1.25% |
**Rates subject to change without notice Last Updated: Tuesday, July 27, 2010
What lenders look for:
When considering a buyer’s qualification, most mortgage lenders use the following guidelines to evaluate a borrower’s ability to repay a loan
5C’s of CREDIT
Character: The borrower’s current employment and length of employment determines the individual’s job security. The bottom line is: will this person be a reliable borrower or high risk?
Credit: The borrowers past records of loans and repayment. Lenders review your credit report and score to determine how well you have handled debt in the past.
Capital: The amount of money the borrower is investing in the property. As well, the lender may verify other assets and liabilities to determine net worth.
Capacity: The ability of the borrower to repay a loan. Does the borrower meet the (GDS & TDS) debt servicing ratios? Gross debt service (GDS) this is the amount of income you can allocate towards monthly principal, interest, tax, heat and condo fee payments. These payments should not exceed 32% of your gross monthly income. The Total debt service (TDS) ratio includes the GDS plus your minimum monthly credit and loan payments. It should not exceed 40% of you gross monthly income. See glossary for more on GDS and TDS ratios.
Collateral: The property used to secure the loan. This includes value, condition, location, and property type.
Please keep in mind that these are guidelines only. There are many mortgage options available for those who don’t conform to these specific standards. Please CONTACT US for more details.
Travis Kulasekere B. Comm |
