Mortgages can be full of surprises and some of the most common assumptions buyers make just aren’t true.
From car leases to appraisals, these myths trip up buyers every day but they don’t have to.
Think You Know Mortgages?
Let’s Clear This Up
Insights from Erin Gillespie, Mortgage Alliance
egillespie@
▪️MYTH: Your approval amount is the same everywhere.
▫️FACT: Lender policies can swing approvals by $50K–$100K. For example, Scotiabank allows higher ratios than most banks.
▪️MYTH: A car lease won’t impact your approval.
▫️FACT: An $800 lease can cut your mortgage by $150K+. Sometimes paying out the lease makes more sense than limiting your buying power.
▪️MYTH: A pre-approval means I can waive my financing subject.
▫️FACT: A pre-approval is just a guideline. Lenders still need to review the property, appraisal, and docs, even details like water source or foundation can stall an approval.
▪️MYTH: If the appraisal comes in low, the lender covers the gap.
▫️FACT: The buyer must cover the shortfall if they wish to proceed with the purchase.
▪️MYTH: All lenders count 100% of rental income.
▫️FACT: Some only use 50%. That difference can swing your approval power big time.
Share this post with anyone planning to buy real estate on the Sunshine Coast, BC!