DEFINITION:
Mortgage: A loan provided by a financial institution or lender to help individuals purchase property. The property acts as collateral against the loan, and the borrower is required to make regular payments over a specified period, usually ranging from 15 to 30 years.
FAQs:
1. Can you get a mortgage while on disability in Canada?
Yes, it is possible to obtain a mortgage while on disability in Canada. However, the approval will depend on factors such as your overall financial situation, income stability, credit history, and ability to make mortgage payments.
2. Will my disability income be considered when applying for a mortgage?
Yes, disability income can be considered when applying for a mortgage, but it may be evaluated differently than regular employment income. Lenders typically assess the stability and longevity of disability income before factoring it into the loan approval decision.
3. Are there any specific mortgage programs for individuals on disability?
While there are no specific mortgage programs exclusively for individuals on disability in Canada, there are certain government-backed programs and initiatives available to assist first-time homebuyers, lower-income individuals, and those with disabilities. These programs may provide additional support or financial assistance.
4. How does my credit history affect my chances of getting a mortgage on disability?
Your credit history is an important factor in qualifying for a mortgage, regardless of whether you are on disability or not. Lenders will review your credit score, financial obligations, and past payment history to determine your creditworthiness. A good credit history will increase your chances of getting approved for a mortgage.
5. Can I use disability benefits as a source of income for a mortgage application?
Yes, disability benefits can be used as a source of income for a mortgage application. However, it is crucial to provide all necessary documentation and evidence to prove the stability and longevity of your disability benefits payments.
6. Will I need a co-signer if I am on disability?
In some cases, having a co-signer may improve your chances of getting approved for a mortgage while on disability. This can be a person with a stable income and good credit history who is willing to take joint responsibility for the loan. A co-signer can provide additional security to the lender.
7. Are there any additional resources or assistance available for disabled individuals seeking a mortgage?
Yes, there may be additional resources and assistance available for disabled individuals seeking a mortgage. It is advisable to consult with a mortgage broker or research government initiatives that aim to provide support for homebuyers with disabilities. They can guide you on various options and potential benefits you may be eligible for.