Quote:
Originally Posted by supafamous
https://itools-ioutils.fcac-acfc.gc....HCalc-eng.aspx
This is a bit a clunky but it gives you a reasonable idea of what banks are able to loan you based on stress test rules. If you're borrowing near your limit one thing that can really screw with your max is how much is on your credits cards. I pay off my cards every month but I run my life through it so it always looks like I'm carrying a tonne of debt and the bank just looks at the balance you have at the time you apply and they don't care if you pay it off every month.
There's two ways to deal with this:
1) Before you apply clear your CC - if you have enough cash flow this is no big deal, just pay things off a couple weeks early.
2) Have your banker enter your balances as zero. This doesn't always work as they will pick up the balances during the credit check and may ignore your zero balance.
It appears my CC balance had a pretty meaningful difference in how much I could borrow - it worked out in the end as I'm getting JUST enough on the sale of my existing house to cover the downpayment on the new place but it could have turned out a lot worse/complicated.
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Did you sell first, then buy? Or the other way around?
In this market, it seems like buy first then sell would be better but I don’t think the bank will even consider it. The $100k deposit is easy but what about the rest?
Sell first, then buy is a risky but at least I know what my budget will be.