If you are looking to move once you are retired, whether you are moving to a new area or you are downsizing, you may be worried about securing a mortgage. You likely do not have as much of an income as you did when you were working and you may feeling like lending agencies will treat you differently because of your age and your situation. The good news is that it is entirely possible to get a mortgage when you are retired. Just keep these few things in mind as you started getting connected with Toronto mortgage brokers.
Your pension income is treated the same as any other income
While lenders may have different regulations for providing mortgages to people who are self-employed or who receive commission as part of their salary, your pension income will not be treated differently. It’s just like having a regular salaried income when it comes to qualifying for a loan for a home.
Lenders are not allowed to discriminate against you because of your age
Much as with most other services provided to the public, age-based discrimination is not allowed when your loan application is being considered.
You may encounter difficulties with getting a mortgage while on a fixed income
While no one is allowed to use the fact that you are on pension to discriminate against you, you could have difficulties if your fixed income is determined to be not sufficient for you to maintain making payments and cover your living expenses. It can be helpful to determine how much you want to spend on a home and what you estimate living costs are to determine what will be available for loan payments.
The length that you will be receiving income can impact your eligibility
Each lenders can have different policies on how long you must be on a fixed income in order for the income to qualify for a loan. Some lenders, for instance, may require that you have this particular fixed income for at least 3 years, or else they will not even consider it when looking at your application. This should not be an issue if you are on pension, but if your income comes from another source, problems may arise.