- who: Home buyer
- real estate goals: $800k detached house
- issues: Low qualifying income
Mark and Christina came to Perch after receiving a pre-approval of $595k from their bank, which was $45k short of what they needed. Perch was able to get them pre-approved for a $855k mortgage with a different lender so they could get their dream home.
Mark and Christina received a pre-approval of $595k from their bank, which was $45k short of what they needed for their $800k detached home, so they came to Perch.
One main issue that prevented them from reaching their homeownership goals had to do with Mark switching from a salaried role to a commission role within the last year. The banks considered this income history too limited and wouldn’t accept any of his qualifying income.
There wasn’t anything that Mark could have done differently to avoid this as the new job opportunity offered him a much higher take home income and his earnings in the first year were almost 200% of his previous salaried role. It would’ve made no sense for him to stay in the other job purely to qualify for a mortgage 1 year from now.
Perch identified the income shortfall and our senior mortgage advisory team knew that specific income profile would work at various lenders. Perch was able to get them pre-approved for a $855k mortgage, which was more than enough to get Mark and Christina into their dream home.
With the help of the Perch platform and leveraging our analytics and senior mortgage advisors, we were able to find a creative solution that helped qualify her for roughly 4x what her bank would have done.
Not only were we able to qualify her for what she wanted, our rate was roughly 0.60% lower as well with a prime lender. The client has already generated a substantial amount of home equity since getting into her home.
You should always compare policies as there are lenders that look at non-salaried income more favourably. If you’re self employed or the bank denies you, it doesn’t mean you are out of options. An experienced mortgage broker will be familiar with how each lender views qualified income. In the end, Mark and Christina were able to get their desired home and have become repeat customers.
*Please note that names have been changed in this story to protect the privacy and identity of individuals.