Nowadays it is nearly impossible to purchase a home in Calgary, Alberta Canada without getting a mortgage. With homes as expensive as they are, it is extremely rare that a person is able to purchase a home upfront and avoid a 10-20 year mortgage. This is why when you are considering buying a property, it is important to set yourself up so that you qualify for a mortgage. After all, banks do not give out mortgages to just anyone.
There are a number of factors that go into qualifying for a mortgage, such as credit history. The most important one is annual income. Banks need to make sure that you will be earning enough money to pay back what you borrowed. While this factor is easy to overcome when you have had a steady job that you will continue to hold for the foreseeable future, it becomes very difficult when your employment history is scattered and constantly changing.
People with massive gaps in their employment history are red flagged because it shows that their ability to hold a job is inconsistent. People who are constantly changing jobs show banks that they do not have secure, long-term employment. However, sometimes it just means that you’ve working your way up to your dream job, or were recently a student and couldn’t have full-time work at just one location. So, what can you do if you are one of these people?
The first big thing to do is to stay on top of your paperwork and send relevant copies to your lender. If you have started a new job or will start one during the mortgage application process, let the lender know upfront and send them copies of your new contract and first pay stubs right away. If your pay is inconsistent–such as when it relies on commission–track trends and overall averages. Give the lender detailed reports, it will go a long way. The second big thing to do is to get a letter of recommendation from your current or new employer. If they can give a testament to the security of your job and your hard worth ethic, it will go a long way in showing that your job is not just one more of many, but a lasting financial security blanket.
Still not sure about spending thousands on a home? Check out this story of a woman giving away her home for $25.00 to whoever writes her the most interesting and heart-pulling letter: https://www.cbc.ca/news/canada/calgary/millarville-million-dollar-home-contest-1.4985249
Best of luck!
Your Real Estate Professional,