Use Case: Broker Leanna Helps Young Couple in Toronto Qualify for Mortgage

Feature Focus: Client Eligibility

Leanna is a mortgage broker based in Toronto, Canada. Recently, she was approached by a young couple, Katie and Leo, who were looking to purchase their first home in the city. The couple had found a property they loved, but were unsure if they would qualify for a mortgage to finance the purchase.

After meeting with Katie and Leo, Leanna assessed their financial situation and determined that their main issue was their debt-to-income ratio. While the couple had stable jobs and a good credit score, they had a significant amount of student loan debt that could impact their eligibility for a mortgage, and potentially leave Leanna failing on multiple mortgage applications for them, leaving them disappointed, and Leanna, exhausted from the paperwork and online applications.

Leanna needed a simple way to illustrate how the couple’s financial position would fit against their eligibility for various mortgage products, and the flexibility to play with elements like payment frequency, to fit into their specific situation. Leanna used Broker Scout’s client eligibility tools to adjust mortgage variables, compare options against available rates, and see how the couple could fit their combined incomes into a mortgage that would get approved. She started by using the Income Requirement Calculator, inputting the estimated property value of the home and the couple's opening mortgage amount. The Broker Scout calculator determined that Katie and Leo would need to have a household income of at least $80,000 to qualify for the mortgage they were contemplating, at the maximum GDS threshold of 39%.

Leanna then used the Max Loan Calculator, inputting the couple's current gross income to determine the highest mortgage amount they could qualify for at the maximum GDS threshold. The calculator determined that the couple could qualify for a mortgage of up to $400,000.

Based on these calculations, Leanna recommended that Katie and Leo focus on paying down their student loan debt to improve their debt-to-income ratio and increase their chances of qualifying for the mortgage, and see if they could increase the amount they were going to put down on their home. She also recommended that they explore different payment options and mortgage types to find the best fit for their financial situation.

Leanna continued to work with Katie and Leo throughout the mortgage application process, helping them gather the necessary documents and submitting their application to the lender. Thanks to her expertise and the Broker Scout client eligibility tools, the couple was able to secure a mortgage for their dream home in rural Ontario.

Katie and Leo were thrilled with Leanna's support and guidance throughout the process. They appreciated her attention to detail and her ability to explain complex financial concepts in a way that was easy to understand. They also found the Broker Scout eligibility tools to be incredibly helpful in finding options that fit their situation, and with visualizing their options.

Leanna's use of the Broker Scout eligibility tools proved to be a critical factor in helping Katie and Leo qualify for their mortgage. As a result, they were able to purchase their first home  and start building equity for their future.