Mortgage while on EI

[cailmoney]

I`m 19 years old and moved out west 6 months ago from Ontario to save up money to purchase my first investment property. I`ve got enough money saved up now and am ready to start looking at houses back in Ontario except that I am getting laid off next week and will be getting EI (employment insurance). It sounds like I`ll be getting $1600 a month which is enough to cover a mortgage even if my house becomes vacant for some reason. I`ve heard you can`t get a mortage while on EI. I am wondering if any banks will give me a mortgage on a property if my EI covers it or if I would need a cosigner? What about private lenders? I don`t think there are too many jobs in Ontario I could work right now that could even pay for my mortage payment.Any advice would be great... I`ve wanted to purchase a house for the pass couple years and felt like I was so close and now have this hurdle infront of me.

Thanks alot!

 

[housedoc]

What do you consider "enough money" after 6 months of work? If you`re getting 1600/mo EI, then you were making what, 3 grand/mo?......X6 = 18K gross?

You`ve been wanting to buy for a couple of years?....you`re 19!

Keep saving....I`d put money on a "no" from the bank.

 

[bizaro86]

It sounds to me like you`d probably need a cosignor, but try not to get discouraged!

Also, I`m wondering why you`re moving back to ON if you don`t think you can get a job there? Why not stay here, get another job, and buy a place to live in. That way, you can get the personal CMHC insurance fees, and you can get a roommate or two to cover your mortgage payment.

One idea would be to consider buying a 3 bedroom townhouse. Two roomates should cover expenses, which would allow you to continue saving for a "pure rental" property. Some "3 bedroom" townhouses may have the potential for a 4th bedroom in the basement, which would help even more.

Don`t let anyone tell you you`re too young to do what you believe in. I was 20 when I bought my first house, so I know it can be done.

Best regards,

Michael

 

[cailmoney]

Thanks for the opinions and no I`m making 4 grand a month, grossed $28,000. $1600 is the maximum you can get on EI.. and by "enough money" I mean enough for a down payment and closing costs and thanks for the encouragement Michael, I`m not gonna let anyone stop me. Thanks!

 

[GaryMcGowan]

QUOTE (cailmoney @ Sep 29 2009, 09:41 PM) Thanks for the opinions and no I`m making 4 grand a month, grossed $28,000. $1600 is the maximum you can get on EI.. and by "enough money" I mean enough for a down payment and closing costs and thanks for the encouragement Michael, I`m not gonna let anyone stop me. Thanks!

Not many mortgages are given to those who have less than two years of solid full time employment let alone to someone on EI. Keep working and saving.