Getting A Mortgage On ODSP (Disability) ... A Fleeting Dream
I have been trying for some time to buy a home. I have always been financially responsible. Looking at the numbers if I buy in a less expensive area, it will be cheaper than rent, so I think it is very worthwhile. Hopefully in the future if I have a home, I can rely less on ODSP when my house is paid for. I hope that I can one day work again and if that's the case I know it won't be much, so I needed to look for a place that would be low cost.
I feel so upset though, as yesterday, I was turned down for a mortgage on a home and the deal has fallen through. This was my first "accepted offer" situation and I knew that it wasn't going to be easy but it was hell. It took three weeks and a lot of everyday stress of we'll let you know in 15 minutes, every 15 minutes so often in the three weeks that I think I have gone numb. I don't even know how many emails and how much information I had to send off, all for a "decline".
I had an offer in, on this home ... Oh, I love old homes. It needed a lot of work and was dated but at least I have the knowledge and the problems didn't seem to be ones that needed to be tended to yesterday. I saw a lot of homes that needed entirely too much help.
Going to school for architecture and not being able to have a home, is hard. I hoped in the least that even if I couldn't design for a living that I could do so in my own space.
In the end I was turned down for the very reason I want to have a home ... because I went to school for so long, in the field of architecture.
I worked hard to be an Architect. I thought I would have a future that would mean I would feel safe financially, not rich in any way but that I could own a home, pay the bills and have fun here or there.
At the end of school I found myself disabled, with a large student loan. With this mortgage my "trying to do something with my life" student loan was my Achilles heel. I finally found a place, that wasn't falling apart and the work could be done over time. I was going to be gifted my down payment and I found a place in a decent area that was safe and very low on cost. I offered a lot less than asking and it was accepted. My mortgage would of been for 30 years and a "whopping" $250 a month with another $135 in tax. It was cheaper than rent aside from repairs and renovation costs. I found a bank that would accept "disability" as an income and more importantly approved the amount of the mortgage based on my income. In the end though, they asked for a black and white letter from the government saying that I would no longer be responsible for my student loan. Lol ... I know the government won't do that.
There is an amazing program the government has, called the Repayment Assistance Program and if you have low income, it can help you repay your student loan. I could and might still apply to have my student loan absolved as there is a special program that if you become disabled while in school and can not have a career in the field you went to school for, they will absolve your loan. I want to finish my Masters Degree, even if it takes me years and so I'm afraid that if I absolve my loan that they might not let me go back and finish. I fear that they will say if you can finish school you can work ... I've heard that one before. If only employers would allow employees to work from home and take weeks to do something that should take hours. ;) Anyways, I am digressing. In the end I am not paying anything on my student loans because I'm well below the zero payment threshold of low income on the chart due to the low amount of disability. If I can figure out a job one day, hopefully, I will have payments geared to income. No matter the circumstances, I can and have been able to prove to my mortgage broker and the bank in question that I can afford such payments alongside this mortgage with any of those incomes ... but alas, it is not enough. The government calculator and the government websites explaining it all aren't enough. It's all not enough of a "black and white" situation for the bank in question.
I just feel like I'm always jumping through hoops trying to make things work. The basic "stuff" is hard and the difficult "stuff" is near impossible and painful.
I hope that in the future I have different news, that someone will take a chance on me. I have spent my life being money conscious and have amazing credit. I suffered through not having and not being able to do many things, to build a good future for myself. I went to school and tried to build something. I just want someone to give me a chance to work on one of my dreams. It's not my ideal dream home in any way and definitely not an ideal location but it's something nice. I just want something of my own to create with, to feel some sense of accomplishment, to feel that the decade of schooling wasn't all for naught. I want to show others my talent even if it will be on an extremely meagre budget.
Everyone, especially those whom are disabled, whom are having extra hard times in life need something positive in their lives, some glimmer of hope. I'm trying so hard to make something happen but it's killing my spirits in the meantime.
Having your dreams crushed is hard to handle.
If you own a home, don't take that for granted, you are so lucky ... GO HUG the walls right now! :P
I'm happy in the least that I have a roof over my head right now and I'm determined to not give up trying for some semblance of a "normal" life or rather a semblance of the life I want to live.
I feel so upset though, as yesterday, I was turned down for a mortgage on a home and the deal has fallen through. This was my first "accepted offer" situation and I knew that it wasn't going to be easy but it was hell. It took three weeks and a lot of everyday stress of we'll let you know in 15 minutes, every 15 minutes so often in the three weeks that I think I have gone numb. I don't even know how many emails and how much information I had to send off, all for a "decline".
I had an offer in, on this home ... Oh, I love old homes. It needed a lot of work and was dated but at least I have the knowledge and the problems didn't seem to be ones that needed to be tended to yesterday. I saw a lot of homes that needed entirely too much help.
Going to school for architecture and not being able to have a home, is hard. I hoped in the least that even if I couldn't design for a living that I could do so in my own space.
In the end I was turned down for the very reason I want to have a home ... because I went to school for so long, in the field of architecture.
I worked hard to be an Architect. I thought I would have a future that would mean I would feel safe financially, not rich in any way but that I could own a home, pay the bills and have fun here or there.
At the end of school I found myself disabled, with a large student loan. With this mortgage my "trying to do something with my life" student loan was my Achilles heel. I finally found a place, that wasn't falling apart and the work could be done over time. I was going to be gifted my down payment and I found a place in a decent area that was safe and very low on cost. I offered a lot less than asking and it was accepted. My mortgage would of been for 30 years and a "whopping" $250 a month with another $135 in tax. It was cheaper than rent aside from repairs and renovation costs. I found a bank that would accept "disability" as an income and more importantly approved the amount of the mortgage based on my income. In the end though, they asked for a black and white letter from the government saying that I would no longer be responsible for my student loan. Lol ... I know the government won't do that.
There is an amazing program the government has, called the Repayment Assistance Program and if you have low income, it can help you repay your student loan. I could and might still apply to have my student loan absolved as there is a special program that if you become disabled while in school and can not have a career in the field you went to school for, they will absolve your loan. I want to finish my Masters Degree, even if it takes me years and so I'm afraid that if I absolve my loan that they might not let me go back and finish. I fear that they will say if you can finish school you can work ... I've heard that one before. If only employers would allow employees to work from home and take weeks to do something that should take hours. ;) Anyways, I am digressing. In the end I am not paying anything on my student loans because I'm well below the zero payment threshold of low income on the chart due to the low amount of disability. If I can figure out a job one day, hopefully, I will have payments geared to income. No matter the circumstances, I can and have been able to prove to my mortgage broker and the bank in question that I can afford such payments alongside this mortgage with any of those incomes ... but alas, it is not enough. The government calculator and the government websites explaining it all aren't enough. It's all not enough of a "black and white" situation for the bank in question.
I just feel like I'm always jumping through hoops trying to make things work. The basic "stuff" is hard and the difficult "stuff" is near impossible and painful.
I hope that in the future I have different news, that someone will take a chance on me. I have spent my life being money conscious and have amazing credit. I suffered through not having and not being able to do many things, to build a good future for myself. I went to school and tried to build something. I just want someone to give me a chance to work on one of my dreams. It's not my ideal dream home in any way and definitely not an ideal location but it's something nice. I just want something of my own to create with, to feel some sense of accomplishment, to feel that the decade of schooling wasn't all for naught. I want to show others my talent even if it will be on an extremely meagre budget.
Everyone, especially those whom are disabled, whom are having extra hard times in life need something positive in their lives, some glimmer of hope. I'm trying so hard to make something happen but it's killing my spirits in the meantime.
Having your dreams crushed is hard to handle.
If you own a home, don't take that for granted, you are so lucky ... GO HUG the walls right now! :P
I'm happy in the least that I have a roof over my head right now and I'm determined to not give up trying for some semblance of a "normal" life or rather a semblance of the life I want to live.
This comment has been removed by the author.
ReplyDeleteI would love to design + build a tiny house as a cottage but as a main house it wouldn't work for me. I have imbalance problems and need space. I also have a massive family (youngest of 6, immediate family is 20+), my bf and I are both creative (I have an art room, he an upholstery shop), we have a dog and cat, I'd like to have kids, also I have a lot of stuff (I need to purge a lot) and most of all it would have been more difficult and impossible mortgage + odsp wise. Banks do not like to give out low mortgages. Many won't go below a certain amount. I had problems with a low house mortgage and had to get a h.e.l.p. loan. Plus they would have to loan you money to build it and you'd have to go through showing them permits and such to prove you are doing it. You would also have to buy the land first and as soon as it is complicated banks runs away. I was told I would only be able to buy a straight sale of a residential house, if that. On the odsp side I can only purchase something as a main property I live on. There might be some red tape around it proving I would eventually live there but any money you are given also needs to be used right away within 30 days. So I'd have to build a house in that time. I am also incapable right now of a lot of physical activity so building would be impossible. I thought about it a lot.
ReplyDeleteAs for banks counting odsp as income; CIBC said no; I believe royal did too; td considered but in the end would not give me a mortgage BC I had a student loan even though I didn't have to pay anything on it and finally with a lot of difficulty BMO gave me a home equity loan plan. I had problems with the house being too low of a mortgage, my student loan, not counting odsp as an income was huge, some wouldn't lend in major sections of Ontario and some did not like that I had a gifted down payment from parents. In the end I also had to get my step mother to co-sign BC of odsp income.
ReplyDeleteI'm with TD.. I don't have a student loan, I just have ODSP, I am trying to find a 1- or 2-day a week job so I can make a little extra plus ODSP gives another $100 for incentive to work... I would not have the benefit of a gifted down payment from anyone though! That was nice of your parents! I wonder if any bank would qualify me though, what do you think? I used to have a credit card but it's now defunct (I maxed it out buying groceries when I was on welfare, before ODSP, I paid it off & cancelled it)
DeleteI just thought I'd add: I've commented on 1 or 2 of your POTS pages long ago.. I used to have POTS very very bad.. the only thing that has helped me immensely is osteopathic adjustments... I think you are in Brantford no? If you are in Brantford please look into going to see Dr. Doel on King George Rd. He is amazing and has helped me so much - it was all due to spinal misalignments, probably from falling on ice years ago - I'd say I'm 80% improved, that's why I think I'd be able to work 1 or 2 days a week, something very low-stress (I also have Asperger's & can't handle stress) It takes time though, Rome wasn't built in a day, I still have episodes of tachycardia but it is improving all the time! Something to consider!
The big part is you need a down payment and with Odsp you cab only have $5000 at a time, so that's the most you can save. That would mean, if a place allowed you a 5% down payment as a first time home buyer the most you could afford is maybe $100000. Being on Odsp they will probably only qualify you financially for being able to afford a place around $50 000. Based on what you've said it seems like you need to rebuild your credit first. Maxing out your card and then cancelling would mean your credit is bad. I would get one or two credit cards and start using them for regular purchases and pay them off. Try to not use more than 50-60% of your credit limit ever. Ex 1000 limit, never use more than 500-600. Also start trying to save that 5000. Maybe have a savings account and put a little bit aside at a time. That's the only way you can do it. You could also look into getting a roommate in your new home. Odsp does take back part of their rent as income. If you have someone who's willing to rent from you with a lease the bank will sometimes take part of their rent as income for you as well and your place can be more affordable.
DeleteI have eds, hyper pots and mast cell activation disorder which means my pots is permanent. I work on making it more manageable but nothing has made it better continually. I can't afford an osteopath but I really really really do appreciate any suggestions. I used to live near Brampton but I am now south of London. I fell and hit my head and hurt my spine. I paid out of pocket for a chiropractor but the adjustments made me worse at the time. It was horrible with the part concussion issues and not knowing of my POTS and other conditions. I'm just plugging away at life. Time helps for sure
Nice blog! I really love the way of your writing. Thanks for sharing such interesting post.
ReplyDeleteBuy to let Mortgage low income
Thank you. I appreciate it. I hope it helps others if not just an outlet for myself at times.
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ReplyDeleteYes, thank you for sharing. I'm in a similar situation as you except that I have bad credit. I thought credit card (cc) companies wanted the entire bill paid, even if it was late. It's the opposite. They'd rather you pay the minimum pymt ON TIME. That way, it shows how responsible you are. For a person with a MSc in human genetics, I was sure stupid. Now I'm teaching my 19 yr old daughter how to build her credit and I'm trying to apply for a cc again. Good luck and don't give up hope. As long as u have hope, there's always a brighter tomorrow.
ReplyDeleteFrom my experience, I have good credit and I pay things off. I would never suggest just paying the minimum. Yes sometimes credit cards give you slightly better credit if you incur interest here or there but it's not much different. One big mistake people have is not having any credit, oddly bad credit can be better than no credit. Weird. You get good credit by having more than one credit source, paying your payments on time with at least the minimum payment but it's better to pay more or you'll get into serious debt as interest will rack up, not using more than about 60% of your limit and watch to not open and close accounts too often as those are knocks against you. Too many credit checks are not good either. There are lots of factors. I was persistent and in the end got this house. Credit was never a factor. At the time I had one of the highest ratings of those I know. It's been very difficult as it is run down but it's mine and I have a roof over my head although it needs repair. Lol
DeleteBtw, perhaps u can use your excellent education to teach others art/drawing. I'm in a bit of a pickle wrt working again. I suffered a cervical stenosis - which means my spinal cord was crushed. I had an operation to prevent further deterioration but a few things had already 'gone.' I still suffer numbness in my hands and lower extremeties but most notably, I lost the use of my hands. My 1st degree (BMus-perf) is in classical piano performance. My second and third were in wildlife biology (BSc) and genetics (MSc) where I did a lot of molecular research. For both, you have to use your hands, extensively. So this condition really screwed me up. But I'm finally at the point now, where I've finally accepted the general condition of hands - the stenosis dislocated both of my thumbs. You really DO NEED your thumbs for the hand to work properly! Anyway, I'm looking into a post - degree programme, ie., you must have a degree of some sort, and hoping to study mediation. Perhaps you can do something similar? Anyway, good luck again and hang onto hope ok?
ReplyDeleteThank you for the advice. I ended up becoming a Mom so I'm working at that. I was also able to go back to school and finish off my masters. It was so amazing and I still can't believe I was able to do it. I hope you are doing "better" now in finding a new normal. All the best
DeleteI'm a single dad on ODSP I have down payment need to find a mortgage company willing give me a mortgage help I was told by one from out west after 4 months of pruff of child support maybe then they will
ReplyDeleteIn the end I was able to get a mortgage albeit a very low one. I got it through BMO as a HELP loan which is basically like a line of credit for cottages or large renovations. Let me know if you have any questions. It was an extremely difficult process. I wish you luck
DeleteSo you were able to get your own house after all? Even after the mortgage & insurance you have enough left over to live on? (I don't mean to be nosy, I'm on ODSP for POTS too) I want my own house too. I live with roommates & am fantasizing about my own place with peace & quiet!
DeleteI wrote this to help others so you're not being nosy. I was able to get a run down house that needs a lot of work in an area far away from ideal but it's my own. I searched areas for places with super cheap houses and it equalled out to rent where I used to live. I moved three hours away which unfortunately means I do not have much support around me. It leaves me pretty lonely but hopefully I'll eventually gain equity in something and maybe can get back into work and off assistance. I'm on Odsp as well. There's not much at the end of the day, especially for the major repairs but I'm doing a little bit at a time. I wish you the best. It may take time but it's not impossible.
Deleteso i and my spouse are on odsp. tell me, did the mortgage broker ask for some kind of letter from your workers saying your on permanent disability? ours asked us, our odsp cw's supervisor says they dont do that at odsp. we have a significant down payment for a house and would also pay off our student loans..as that is our only debts even though its in the repayment program.. any help with steps to finding a broker that has worked with someone odsp? any help would be great... banks seem to discriminate with the ones we delt with =(
ReplyDeletetalked to my worker again, she said we are entitled to only $1902 maximum. but she would not state that for our family unit of 3 shelter costs of the maximum of 816.. so is the 1902 inculde the shelter costs or is that only the basic needs? before the shelter costs are added
DeleteYa they do not like those letters even with the new provincial guidelines of using a federal definition. Yes they are being unclear. No With excellent credit and up to a 15% down no mortgage broker will touch me for the lack of "permanent disability" the housing situation in Canada sucks....as does our government.
ReplyDeleteI was able to get my own mortgage on my house just this past year on my own through a mortgage broker and Momentum Credit Union. It's worth a shot. The problem now is house prices. With ODSP there isn't much that is affordable for the listing / selling price.
ReplyDeleteI have about a 60% downpayment. I receive child support and ODSP. It is not long term ODSP. It is due to mental health (PTSD and anxiety). Good or bad chances of getting a mortgage?
ReplyDeleteYou can only have $40 000 on odsp as a single person so it's hard to save up much. I'm assuming you can have more with more kids. 60% is great. Wow. The child support will count as income the odsp is questionable unless it is permanent. I would talk with a mortgage specialist and let them know your situation. It will be tough as if your income support is only 2 or 3 years, then you have no job and a 20 year mortgage they question how you can pay. If the extra 40% you have to pay isn't much it could be more of a short term loan. You must have good credit too. You can check your credit report for Borrowell for free. I wish you lots of luck in your health and your housing quest.
DeleteSomeone Sometimes with visits your blog and recommended it in my experience to read as well. The way of writing is excellent and also the content is top-notch.Thanks for that insight you provide the readers!
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