Can I Get A Mortgage Without A Job?
As the COVID-19 crisis carries on, the extent to which it affects so many people in so many ways continues to amaze us all. While frontline healthcare professionals and others included in essential services may be overworked and stressed, others have lost their jobs and face an uncertain future. For new families or those finally ready to make the move and are now facing unemployment, you may be left wondering if you can get a mortgage without a job.
Buying a home is the largest investment most of us will make in our lives. It’s an important step and means you must have everything you need, from mortgage approval to a moving company, before you can make it happen.
If you were in the process of, or considering investing in Markham real estate before the COVID crisis, and you have lost your job, you may be wondering if you can still even get a mortgage. In fact, you may be wondering if you should even apply for a mortgage during COVID-19, or should you wait.
Yes, You Can Apply for a Mortgage During COVID-19
First, banks, other financial services companies and mortgage lenders are still open for business as essential services. So, yes, you can still apply for a mortgage during the crisis to purchase a home.
But, as with any other transaction during the crisis, the timeline for getting approved for a mortgage and receiving it can be longer than usual. That means it’s more important than ever to get pre-approved for your mortgage. Make sure you research all your mortgage options and have all your information ready. From a good credit score, to employment history, mortgage lenders have a thorough approval process that you should be mindful of.
Yes, You Can Still Get a Mortgage if You’ve Lost Your Job Due to COVID-19
If you apply jointly with another person, either a partner who is working or someone who can act as a guarantor for your mortgage, you can absolutely get approved for a mortgage loan.
But, again, the circumstances may be different due to COVID. Joint mortgage applications or those using a guarantor can take longer to process than if you have work and apply on your own. Also, especially in the case of applying with a partner, the amount you may be eligible to borrow may not be as high as if you had a dual income. Mortgage lenders will check your tax returns, credit history, and if you have poor credit, it could impact your ability to qualify for a mortgage, or you may have a higher interest rate with larger monthly mortgage payments.
If you found this post helpful and you want to learn more about mortgages, check out our recent article “In Real Estate News: Mortgage Deferrals”.