Various stages exist in order to avail Canada Mortgage Loan. Lenders deeply examine the loan application form which includes the identity of mortgage applicant, source of income, employment status, work duration, credit report and estimates the current property value of the market. The credit report is provided to mortgage lender from credit bureaus.
Necessary steps are followed by lenders in Canada for the approval of loan amount to applicants:
1) The identity proof of the applicant is required by the Canadian lender along with the pictures of the applicant in order to avoid fraudulent activities. Credit history of applicants is verified by mortgage lenders through credit information provided by different credit agencies.
2) Mortgage lender examines the monthly income of the borrower in order to check his financial capability to pay off the loan amount within stipulated period of time. Monthly income of the individual is examined by the lender after deducting the tax from the monthly income. The expenses incurred as per house hold requirements are considered by the lender after the loan will be provided to them.
3) Lenders usually examines the amount of existing debts which loan applicant need to pay apart from paying mortgage payments on monthly basis at consistent intervals. The debt includes credit card bills and other unpaid loans that need to be paid by the mortgage loan applicant. The mortgage lender usually provides or rejects the loan application submitted by different loan applicants.
4) Lenders provides the mortgage to the applicants after assessing their employment history. Lending institutions also gets the surety of repayment of mortgage loan by the borrowers within stipulated loan period. Necessary documents are required by mortgage lenders from those people who are self employed or have lost their jobs.
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