Building Your Financial Model: Who Will Lend To You?

Now that you’ve completed your crash course on mortgages, it’s time to move on to who will lend to you and how will you convince them to lend to your group.

This can be challenging but it is possible. As with every step in the process of co-ownership, you need to be prepared. This section will look at the types of lenders available to you and your group. Keep in mind that not every lender will consider co-ownership and those that will may come with some fees.

Who Will Lend To Your Group?

Some banks are not ready to embrace co-ownership in real estate. Other options exist, and you can look to other lenders who are more comfortable with the (perceived) risk of co-owned real estate mortgages, and will offer more favorable rates.

What Will A Lender Be Looking For?

A lender will want a completely full financial picture for every one of the members of a purchasing group. The following questions must be answered:

What do you owe?

Debts, Loans, Credit Cards, Taxes, Other Mortgages

What is your credit behaviour?

Credit History, Credit Score

What is your down payment contribution? (and where is it coming from?)

Savings, RRSPs, Gifts from family members

What will your income be?

Salary, Bonus, Commissions, Pensions, Hourly, Employer

How Do You Build Your Financial Model?

Click on the sections below to learn more.

1. Building Your Financial Model: Introduction
2. Building Your Financial Model: What's In A Mortgage?
3. Building Your Financial Model: Who Will Lend To You?
4. Building Your Financial Model: Get Your Financial Profile Ready!
5. Building Your Financial Model: Creating Your Budget
6. Building Your Financial Model: Combine-Leverage-Split
7. Building Your Financial Model: Summary & Next Steps