Finance your home purchase as a doctor, dentist or veterinarian using Vancouver projected income mortgages

Now, let’s say you only have $150K for down payment. Under normal circumstances, this would mean you can afford a property of about $750K, if using a 20% down payment. That would bring your loan amount to $600K.

But, using projected income, you could qualify to borrow $1M towards a home purchase.

So, if you want the $1M home, you can use your $150K with an insured mortgage to provide a 15% down payment. The bank is more likely to allow this if they can see proof that you are in residency or fellowship, and will soon earn far more than your current salary.

If you were not in residency, and if your income could not support such a large mortgage repayment (when considering other factors, like debt and interest rates), then the bank would be more wary of lending you this much. They may say “no” outright, or they may ask for a higher down payment amount.

Now, if you only want the $750K home, and if you can qualify for that amount without using the projected income program, then you don’t need to use it.

In any case, it will be up to you to determine your own budget when deciding what you can comfortably pay in monthly living expenses. This should be the main factor in deciding which mortgage program to apply under.

If you’re not sure how to go about determining your affordability, or which program to use, we can help! That’s what we’re here for as mortgage specialists.

Contact us today!

Email: simon@bcmortgagesolutions.ca

Office: 604-495-8787

Cell: 778-929-3678

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However, in general, you can expect the following income qualifying amounts:

Doctors:

• First and second year medical residents or fellows – $185K.
• Third year and above medical residents or fellows – $225K.
• Last year family medicine residents or fellows – $225K.
• Last year speciality medicine residents or fellows – $225K – $379K (depending on the specialty).
• Those within their first 24 months of practice – $225K – $379K (depending on the specialty).
• Foreign-trained physicians licensed by a provincial college within the last 24 months – $225K – $379K (depending on the specialty). Must be Canadian residents.

Dentists:

• Last year dental residents, fellows or students, or those within their first 12 months of practice – $124K.

Veterinarians:

• Last year veterinary medicine residents, fellows or students, or those within their first 12 months of practice – $86K.

In all of the above cases, you will need to provide:

• Proof of your current income, assets and debts. These will be verified as per usual.
• Proof of your residency enrollment and year of completion.

Note: If you are a first-year medical student who has not yet begun your residency, but have been accepted into a program, you may be able to use an acceptance letter to qualify.

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Insured mortgage down payments using projected income must be at least 10% of the purchase price of the home.

Uninsured mortgage down payments using projected income must be at least 20% of the purchase price of the home.

Generally speaking, only half of your down payment can be from borrowed or gifted funds.

However, each lender can have different rules around this. So, it’s best to speak to a mortgage broker who can better direct you, based on your circumstances.

Contact us today – we’re ready to help!

Email: simon@bcmortgagesolutions.ca

Office: 604-495-8787

Cell: 778-929-3678

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But, your projected income may be the key to your mortgage approval, nonetheless. It will show that you can afford to pay off existing debt and take on a home purchase.

This is another reason medical students may want to use projected income mortgages. Otherwise, their debt with their current income may not leave many options open for a low-rate mortgage.

If you are concerned your level of debt may exclude you from a mortgage, we encourage you to get in touch. When we learn a little more about your case, we’ll be able to advise on whether or not you may still qualify. It doesn’t take much time, and there’s no risk to you.

Email: simon@bcmortgagesolutions.ca

Office: 604-495-8787

Cell: 778-929-3678

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Projected income mortgages are not available for secondary homes, rental properties and mobile homes. They also can not be used for purchase plus improvements programs or progress draw mortgages (for building a new home).

Other exclusions may apply. It’s best to speak with a mortgage broker to find out if you can qualify for this program. Some lenders can be more lenient than others, which can make this a bit of a ‘gray area’ when it comes to qualifying for a mortgage.

Contact us today, and we’ll learn more about your case to be able to recommend a mortgage program that works for you.

Email: simon@bcmortgagesolutions.ca

Office: 604-495-8787

Cell: 778-929-3678

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