Wait at least 2 full years from the day you are discharged from bankruptcy to apply for a TD mortgage.Never miss a payment or max out a credit card or line of credit. Keep them open and active for at least 2 years.Have at least 2 different types of credit, like a credit card and a personal loan.To re-establish your credit as quick as possible and help you qualify for a TD mortgage, make sure you follow the “Rule of 2:” The good news is that TD Canada Trust is one of the few Big 6 Banks to offer a secured credit card to help rebuild your credit after financial trauma, like a bankruptcy. You still need to meet the basic mortgage qualification criteria required of all applicants. ![]() If you have gone through a bankruptcy in the past, make sure you have been discharged for at least two full years and have re-established your credit before you apply for a TD mortgage. Generally speaking, most of Canada’s Big 6 Banks, like TD, can approve a mortgage for previously bankrupt applicants. You can use the Hardbacon CMHC Mortgage Insurance Calculator to see how much your premiums will be before you apply for a TD mortgage. Most high ratio mortgages are insured through the Canadian Mortgage and Housing Corporation (CMHC), commonly referred to as a “CMHC Mortgage.” Insurance premiums are calculated based on the purchase price of the house and the size of your down payment, then added to your total mortgage loan and subject to mortgage interest charges. Mortgage default insurance protects TD Canada Trust from loss if you default on your mortgage and it goes into foreclosure. This type of mortgage is often called an “insured mortgage.” A high ratio mortgage, where the down payment is less than 20% of the purchase price, requires mortgage default insurance. If you do not have a 20% down payment, you can apply for a special high ratio mortgage through TD with a down payment as little as 5%. ![]() To qualify for a conventional TD mortgage, you need to provide a down payment that is at least 20% of the purchase price. You can find out if you pass the mortgage stress test before you apply for a TD mortgage by using the Hardbacon Mortgage Qualifier Calculator. Nobody wants to lose their home, and TD does not want to take it. The mortgage stress test protects you and the lender from loss. TD is legally obligated to prove whether or not you pass the stress test, and cannot approve your mortgage if you fail. The test is meant to ensure that you could still afford to live in your home should mortgage interest rates increase and make your payments bigger down the road. In order to pass the mortgage stress test, your total monthly payment obligations must not exceed a certain percentage of your gross monthly household income under both the current rate and the pretend higher rate. ![]() The calculation is done twice using the current mortgage interest rate offered by lender, and again using a higher fictitious rate set by the OSFI to simulate a “worst case scenario,” should mortgage rates increase in the future. It measures your monthly debt payment obligations, your potential monthly mortgage payment, and other monthly homeownership costs against your gross monthly household income. The mortgage stress test is a federally mandated mortgage qualification requirement that TD Canada Trust, and every federally regulated mortgage lender, must confirm in order to approve your mortgage.
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