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Pre-Qualification Explained

Julia Holmes has some advice to give you about getting Pre-Qualified. Both Julia and Clyde learned about the Pre-Qualification process when they decided it was time to start planning for their goal of owning a home. Without a doubt, it is extremely relevant for anyone looking into the home ownership process.

The First Step

The very first step towards purchasing or building a home is determining what value of property you can afford. TTMF’s Pre-Qualification Process assesses your financial information so that a price range can be worked out. Clyde and I remember our Pre-Qualification Interview like it was yesterday! I was a little nervous at first, but once I realized TTMF was there to help, my nerves melted away. Just make sure you take your ID, most recent Pay Slip and a Job Letter with you to the interview. This interview can also take place over the phone.

You can find out more on how to get started with your own Pre-Qualification Interview here.

2% and 5% Mortgage Programmes

As TTMF explains, “If the income of the head of the household is $14,000 or less monthly, you may qualify for an interest rate of 2% to purchase any property valued up to $1,000,000.” This means that if you meet the above income criteria, you may qualify for the 2% programme. For those that earn between $14,000 and $30,000 monthly, they may qualify for an interest rate of 5% to purchase any property valued up to $1,500,000.

During our meeting with TTMF they also explained to us that those who do not meet the criteria for subsidized interest rates may be a fit for the open market interest rate.

Pre-Qualification Factors

Clyde and I learned that the factors that affect Pre-Qualification include your age, income and other debt. Since Clyde and I were submitting a joint application, both of our financial positions were taken into consideration. This means that the TTMF looked at both of our ages, our income and they also examined any debt Clyde and I had at the time.

In our case Clyde and I had a combined salary of $14,000.00 which meant we were able to qualify for the 2% programme. Also taken into consideration were our ages at the time; Clyde was 36 and I was 33 years of age. Given we were both retiring at the age of 65, this meant we had close to 30 years to pay off the mortgage, which worked in our favour.

Another important factor was our debt. We shared a car loan which unfortunately reduced the qualification amount. To address this, Clyde and I decided to pay off the car loan before we proceeded with the mortgage. This helped increase our qualification amount.

Start your Research

Before you go in for your Pre-Qualification Interview, you can use the TTMF mortgage calculators to help understand how much you may qualify for.

  • 2% calculator here
  • 5% calculator here
  • Open Market Rate calculator here

You can also walk into your nearest branch of TTMF to get prequalified. For a list of branch locations, click here.  Hopefully this helped explain more about Pre-Qualification. Maybe we’ll see you soon for a Pre-Qualification interview!