Mortgage During Residency

[mnbv]

Can anyone comment on the options available to them for mortgages during residency?

The rent-vs-buy debate aside, has anyone explored the options through the big banks or brokers?

I'd be particularly interested to know how pre-existing debt on a med-student line of credit affected your options (size of the mortgage, ability to go with a mortgage broker vs. having to stick with the institution providing the LOC)

Thanks!

[Bambi]

I was able to put down a sizeable down payment, which worked in my favour in terms of the interest rate, but the sizeable student debt did not affect the outcome. It's best to discuss this with the bank or broker.

[rmorelan]

I didn't find any impact of the student debit when I explored it at my bank (the one that gave me the LOC)- they were interested in whether I had the 20% down payment as per mortgage rules so that mortgage insurance was not required etc. 

[NLengr]

I bought during residency. You need 20% down because CMHA insurance can't be used (the govt won't count future income so your income to debt ratio is way too bad for the government. If you have a spouse who is well paid this may not be true). You can pull the down payment from an LOC or get part of it as a "gift" from relatives etc.

 

The banks seem very variable as to how eager they are to give you a mortgage. RBC gave me one at the start of residency but then when we went looking for a new home when I was finished training and about to start a job they made ridiculous demands despite my debt being similar to when I started residenc, the homes being similar in price (we were moving to a city with lower house prices) and my earnings as a staff expected to be about 350k in my first year (vs. 50k as an R1). They lost all my business because of it.

 

You need to shop around between the big banks (plus national). I found brokers to be useless because they don't understand physician financials at all.