Mortgage financing can be tricky and daunting business. To help you understand your rights when it comes to mortgages, we’ve consulted an expert. On this segment of The Marc and Mandy Show: Expert Q&A, Pam Pikkert of Regional Mortgage Group gives expert answers to mortgage questions.
Q: When going through a divorce, how can one spouse keep the family home?
Pam Pikkert: So, in the case of a divorce, lots of clients, one partner or the other, want to stay in the matrimonial home, so that they can continue to live with the children where they are comfortable. So in that case there’s actually a specialty program in place you can go up to 95 of the property’s value to purchase the property from the other person. When you are going through a separation, if you have opted to stay in the matrimonial home, you’re basically buying it from your ex-spouse. So, in that situation I highly advise people to get an inspection on the property as though they were purchasing any other property. In that situation, once you’re down to one income it can be hard to come up with the funds necessary to do some of the small repairs, whereas if you take care of that before the separation and disposal buyout is complete, you can add those costs into the separation agreement.
Q: What information do I need to provide in order to be approved for a mortgage?
Pam Pikkert: When somebody’s trying to purchase a home lot of times we are trying to get as much income together as possible so they can purchase the most home that they’re able to. We are able to use varieties of income to help them qualify. So, of course, we can use standard employment, self-employment, old age security CPP, we can use child tax credit, we can use disposal support and we can use child support. There have been a whole bunch of changes in the mortgage world and documentation is higher than it has ever been. Minimally, you’re going to have to provide a letter of employment and a recent pay stub. Additionally, you’re probably also going to have to provide the last two years’ notices of assessment, t4s, and if you’re self-employed we’re also going to need your full t1 generals, as well as your business financial statements. If you’re divorced make sure you have on hand your separation agreement, and if we’re trying to use child tax credit, we’re going to need birth certificates of your children and probably the form from the government stating how much you’re eligible for each year.
About Regional Mortgage Group:
For over 20 years, the team at Regional Mortgage Group has been helping consumers understand their monthly mortgage payments. To find out what types of mortgage products they can help with, visit the Regional Mortgage Group website.