Applying for a mortgage can be a lengthy process, to say the least. This is often exacerbated when you encounter questions that seem more suited to a political survey than a financial form.
Your might wonder, for instance, why you're being asked about potential "political targets" or "politically exposed" people in your family as you fill out your application. As a first-time homebuyer, you may be caught off guard by odd questions like these. However, these questions are often par for the course as mortgage lenders like to be as thorough as humanly possible.
From questions about the origin of your down payment to reviewing “unusual” sources of income, banks want to ensure there are no surprises before they approve your mortgage. Below, I’ll outline some often-unexpected questions you should prepare for and I’ll try to explain why they’re being asked.
When applying for a mortgage, stumbling across a question about “political targets” or "politically exposed persons" isn’t what most homebuyers likely expect.
This question isn’t just about banking bureaucracy, though. It's part of lenders’ Know Your Customer (KYC) policy designed to safeguard banks against money laundering, illegal activities, and other potential threats.
The national average home price moving into November was $656,625, according to a recent report from Wowa, an online review platform for real estate agents. In major cities like Toronto and Vancouver, many homes are listed for $1 million or more.
Lenders aren't just interested in your financial ability to repay a loan. Before banks approve loans like these, they want a complete understanding of exactly who they’re lending money to.
This includes assessing potential risks associated with lending to someone who might be a political target, such as threats from terrorists and kidnappers. While it may seem like a scenario straight out of an espionage movie, it's a real consideration in the financial world.
Asking about political targets certainly tops the list of seemingly odd questions prospective homebuyers may be asked. However, it’s not uncommon for lenders to question you about that and some of these other topics during your mortgage application process.
1. Employment history and stability
Lenders like to see financial stability in mortgage applicants, and your employment history is a great indicator of this. Reporting a steady job history suggests that you have a reliable income stream, which is essential to cover your monthly mortgage payments.
Before applying, make sure that your resume showcases consistent employment. Many lenders want to see that you have at least two years of consistent income.
For those with a more eclectic work history (such as subcontractors or small business owners), be prepared to explain any gaps or changes in your income history.
2. Unusual sources of income
Income diversity can be a strength, but it can also raise eyebrows.
Lenders may question income you’ve received from unconventional sources to assess its reliability. Seemingly random cheques, money wires, and cash deposits almost always raise a red flag among lenders.
Be transparent about where your money comes from and have documentation ready to prove its legitimacy.
3. Reasons for moving
Although this question might seem personal, it’s part of the lender’s overall risk assessment process. Understanding your motivation for moving helps lenders gauge the stability of your investment.
Whether it's for a new job or more space, clear and logical reasons can reassure lenders of your commitment. For example, a borrower who recently picked up and moved across the country for a brand-new job may represent a higher risk compared to a borrower who’s been living in the same province for several years working for the same employer.
4. Credit history beyond your score
Your credit score is just the tip of the iceberg. Lenders might dive deeper into your credit history to understand your financial behaviour. Make sure your credit report is error-free and be ready to explain any anomalies or past financial hiccups.
You can get a complete credit report for free from Canada’s two major credit bureaus: Equifax and TransUnion.
5. Future financial plans
Lenders may inquire about your long-term financial goals in order to understand your overall financial health and planning. Be honest about your future plans, as this can demonstrate foresight and financial responsibility.
For instance, if you plan to quit your job and start a business in the next year, this risk could affect your ability to make mortgage payments on time.
6. Specific details on your down payment
Aside from wanting to see consistent sources of income, lenders may ask for specific details as to where your down payment money is coming from.
Be prepared to provide detailed information about how you accumulated your down payment, whether through savings, investments, or a gift, to assure lenders that you’re financially responsible and able to handle your mortgage payments moving forward.
At their core, all of these questions aim to peel back the layers of prospective homebuyers’ personal and financial lives to ensure that the funds for your home aren't entangled in potentially problematic situations. Lenders also want to make sure that borrowers will be able to make steady mortgage payments and have a very low risk of defaulting on the loan.
The best way to prepare for these questions is to keep detailed records of any and all financial transactions. When you speak with lenders, the more organized you are and the more proof you have of your ability to be financially responsible, the easier the loan application process will go.
Canada’s real estate market could be in for some major changes in 2024. Keep reading to see how the upcoming renewal of pandemic-era mortgages could rock the foundation of Canada’s housing market.
Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his Wealth Awesome website.
Do you have a question, tip or story idea about personal finance? Please email us at dotcom@bellmedia.ca.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
A mother shares with CTVNews.ca her family's health scare as medical experts say cases of the disease and other respiratory illnesses have surged, filling up emergency departments nationwide.
Russian President Vladimir Putin announced Thursday that Moscow has tested a new intermediate-range missile in a strike on Ukraine, and he warned that it could use the weapon against countries that have allowed Kyiv to use their missiles to strike Russia.
Approximately 85,000 new passports are being held back by Service Canada, which stopped mailing them out a week before the nationwide Canada Post strike.
Taylor Swift is officially back in Toronto for round two. The popstar princess's motorcade was seen driving along the Gardiner Expressway on Tuesday afternoon, making its way to the downtown core ahead of night four of ‘The Eras Tour’ at the Rogers Centre.
Manitoba RCMP have issued a Canada-wide arrest warrant for the semi-driver involved in a crash that killed an eight-year-old girl and her mother.
Canadians won’t have to pay GST on a selection of items this holiday season, the prime minister vowed on Thursday.
The mother of an infant who died after being found at an apartment building in midtown Toronto on Wednesday has been charged with failing to provide the necessaries of life.
Prime Minister Justin Trudeau said Canada will 'abide' by an International Criminal Court (ICC) arrest warrant for Israeli Prime Minister Benjamin Netanyahu.
Manitoba RCMP have issued a Canada-wide arrest warrant for the semi-driver involved in a crash that killed an eight-year-old girl and her mother.
Approximately 85,000 new passports are being held back by Service Canada, which stopped mailing them out a week before the nationwide Canada Post strike.
A high school on Prince Edward Island is removing pictures of its late students from a memorial wall – a decision that has upset one mother whose daughter attended the school.
A man from B.C.’s Lower Mainland who was scammed while selling his Porsche Cayenne online is sharing his cautionary tale – while calling for increased protections from the government.
Peel police say a bench warrant has been issued for the arrest of one of the suspects charged in connection with the gold heist at Pearson International Airport last year.
Calgary police are seeking information in relation to a Tuesday fire in Hillhurst that they believe was deliberately set and allegations it could be connected to a frightening Bitcoin scam.
A recent lawsuit alleges Linda McMahon, who U.S. President-elect Donald Trump tapped to lead the Department of Education, knowingly enabled the sexual exploitation of children by a World Wrestling Entertainment (WWE) employee as early as the 1980s — allegations she denies.
Brazil's federal police said Thursday they indicted former President Jair Bolsonaro and 36 other people on charges of attempting a coup to keep him in office after his electoral defeat in the 2022 elections.
More than 60 years after President John F. Kennedy was assassinated, conspiracy theories still swirl and any new glimpse into the fateful day of Nov. 22, 1963, in Dallas continues to fascinate.
The son of Norway's crown princess will be jailed for up to one week while police investigate accusations of rape made against him, a judge ruled on Wednesday.
A woman told police that she was sexually assaulted in 2017 by Pete Hegseth after he took her phone, blocked the door to a California hotel room and refused to let her leave, according to a detailed investigative report made public late Wednesday.
The US government formally proposed a partial breakup of Google on Wednesday, urging a federal judge to force a sale of the company’s Chrome web browser after a landmark ruling this year found that Google had violated US antitrust law with its search business.
Canada's consul general in New York doubled-down Thursday on his past claim that he exerted no influence on the decision of Global Affairs Canada to buy a $9 million condo in Manhattan.
Prime Minister Justin Trudeau said Canada will 'abide' by an International Criminal Court (ICC) arrest warrant for Israeli Prime Minister Benjamin Netanyahu.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
A mother shares with CTVNews.ca her family's health scare as medical experts say cases of the disease and other respiratory illnesses have surged, filling up emergency departments nationwide.
A Dallas anesthesiologist was sentenced Wednesday to 190 years in prison for injecting a nerve-blocking agent and other drugs into bags of intravenous fluid at a surgical center where he worked, leading to the death of a coworker and causing cardiac emergencies for several patients.
A measles outbreak in New Brunswick that began last month with a single travel-related case is growing and today stands at 44 cases.
The Canadian Space Agency (CSA) is inviting Canadians to choose the name of the first Canadian Lunar Rover.
Astronomers have captured the first close-up image of a star beyond our galaxy, taken during a dramatic moment near the end of the star’s life. In it, the 'behemoth' star appears to puff out gas and dust, a critical final step before exploding in a supernova.
A rare kind of fruit fly has been caught by U.S. Customs and Border Protection (CBP) agriculture specialists at Detroit Metro Airport.
Taylor Swift is officially back in Toronto for round two. The popstar princess's motorcade was seen driving along the Gardiner Expressway on Tuesday afternoon, making its way to the downtown core ahead of night four of ‘The Eras Tour’ at the Rogers Centre.
A musical gem was recently uncovered from the vaults of the Luther Vandross Estate — a soulful, never-before-heard rendition of The Beatles' song 'Michelle.'
Pamela Hayden, the longtime voice actor behind Milhouse Van Houten — Bart Simpson's very uncool friend — is stepping away after 35 years of whining.
A temporary pause on charging the federal sales tax on many items has retailers excited, even though they say preparing for the relief will mean a lot of extra work in a short period of time.
The US government formally proposed a partial breakup of Google on Wednesday, urging a federal judge to force a sale of the company’s Chrome web browser after a landmark ruling this year found that Google had violated US antitrust law with its search business.
McDonald's Canada says espresso-based drinks and hot chocolate are temporarily unavailable at some of the chain's restaurants as it copes with a potential equipment issue.
The world's tallest woman and the world’s shortest woman have met for afternoon tea in London to celebrate Guinness World Records Day.
Sandra Kroek and her grandson Remington spent 200 hours painting a massive Star Wars mural together.
CTVNews.ca wants to hear from digital nomads who have taken up location-independent jobs and can work from anywhere with an internet connection.
Sea Bears centre Chad Posthumus has died at age 33.
It’s fair to say 2024 has been quite a year for Italian tennis, especially for Jasmine Paolini who capped the best season of her career by winning the decisive match in the Billie Jean King Cup Finals against Slovakia to secure Italy’s first title in 11 years.
Major League Baseball will test robot umpires as part of a challenge system during spring training at 13 ballparks hosting 19 teams, which could lead to regular-season use in 2026.
Northvolt AB has filed for bankruptcy protection in the United States, but said the move will not jeopardize the manufacturer's planned electric vehicle battery plant in Quebec — though hundreds of millions of taxpayer dollars invested in the parent company could be lost.
Canadian drivers are regularly in a hurry to get to their destination and a majority are willing to take unnecessary risks on the road, according to the results of a new survey.
A man from B.C.’s Lower Mainland who was scammed while selling his Porsche Cayenne online is sharing his cautionary tale – while calling for increased protections from the government.
After driving near the water that winter day, Brian Lavery thought he saw a dog splashing in the waves – then realized it was way too cold for that.
Toronto radio and podcast host Jax Irwin has recently gone viral for videos of her cute -- and at times confusing -- phone conversations.
Two young women from New Brunswick have won one of the most prestigious and sought-after academic honours in the world.
Stretching 3,000 kilometres from the tip of New Zealand to its southernmost point, with just a bicycle for transport and a tent to call home, bikepacking event Tour Aotearoa is not for the faint of heart.
When he first moved to his urban neighbourhood, Barry Devonald was surprised to be welcomed by a whole flock of new neighbours.
When George Arcioni began renovating his kitchen last summer, he didn’t expect to find a stack of letters hidden in the wall behind his oven.
A Nova Scotia couple fulfilled their wildest dreams Thursday night when they got engaged at Taylor Swift’s Eras Tour in Toronto.
Some Calgary residents caught what appeared to be a meteor streaking across the sky early on Wednesday morning.
Four years ago, Phill Hebb started up 'Phil’s Unique Birdhouses' and since then, they’ve made their way all across Canada and into the United States.
The B.C. RCMP has begun its rollout of police-worn cameras, and officers with the Mission detachment will be the first to use them next week.
A man from B.C.’s Lower Mainland who was scammed while selling his Porsche Cayenne online is sharing his cautionary tale – while calling for increased protections from the government.
Vancouver Island’s major crime unit is investigating the case of a Victoria teenager whose death was initially ruled an accidental overdose, but has since been reclassified by coroners as a homicide.
Taylor Swift is officially back in Toronto for round two. The popstar princess's motorcade was seen driving along the Gardiner Expressway on Tuesday afternoon, making its way to the downtown core ahead of night four of ‘The Eras Tour’ at the Rogers Centre.
Two people have been arrested and another suspect remains at large in connection with a fatal shooting in Brampton earlier this month.
The mother of an infant who died after being found at an apartment building in midtown Toronto on Wednesday has been charged with failing to provide the necessaries of life.
Calgary police are seeking information in relation to a Tuesday fire in Hillhurst that they believe was deliberately set and allegations it could be connected to a frightening Bitcoin scam.
Calgary police are looking for dash-cam footage as they investigate a shooting in the community of Cityscape believed to be the result of road rage.
Everybody who lived in Edmonton in the 1980s knew it was famous for two things: the mall and the Oilers.
The student union at the University of Ottawa says it will consider pulling its participation from the U-Pass, which provides discounted transit fares for students, if the city goes forward with hiking student transit fees and violating the program’s contract.
McDonald's Canada says it has not closed the door on a return to Ottawa's downtown.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
The lobby of Concordia University’s Hall Building was flooded with pro-Palestinian protesters Thursday as others gathered and chanted outside the campus as part of Quebec-wide solidarity strikes.
Quebec Finance Minister Eric Girard tabled an economic update on Thursday with $2.1 billion in new spending over five years amid what he described as a stronger-than-expected recovery from last year's economic slowdown.
Northvolt AB has filed for bankruptcy protection in the United States, but said the move will not jeopardize the manufacturer's planned electric vehicle battery plant in Quebec — though hundreds of millions of taxpayer dollars invested in the parent company could be lost.
The Alberta government will announce new automobile insurance reforms Thursday afternoon.
Alberta is forecasting a $4.6-billion surplus for this fiscal year, but Finance Minister Nate Horner says "mounting pressures" threaten to soon put the province in the red.
A trio of top-line Edmonton Oilers will be missing from action Thursday.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
A high school on Prince Edward Island is removing pictures of its late students from a memorial wall – a decision that has upset one mother whose daughter attended the school.
A 36-year-old Fredericton man is facing several charges, including forcible confinement, after police say five people were taken hostage in the city.
Manitoba RCMP have issued a Canada-wide arrest warrant for the semi-driver involved in a crash that killed an eight-year-old girl and her mother.
Sea Bears centre Chad Posthumus has died at age 33.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
Evraz North America says an investigation is underway after a contractor was fatally injured while on the job in Regina on Nov. 19.
The Regina Pats have announced a blockbuster trade Thursday that sees captain Tanner Howe on his way to Calgary to play for the Hitmen as the team continues rebuilding for the future.
The Grey Cup Champion has officially been crowned for the 2024 season and once again it did not go to the Saskatchewan Roughriders. On Thursday, General Manager, Jeremy O'Day, spoke to media to break down another year.
A busy Kitchener street could be closed for several hours after a crash involving a Grand River Transit vehicle.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
Four members of the Hells Angels Motorcycle Club and one member of the Red Devils Motorcycle Club are facing robbery and weapons charges as part of an ongoing investigation.
Alberta-based non-profit the Mustard Seed is stepping up to run Saskatoon's Lighthouse.
As Saskatoon recovers from Monday night’s snowstorm, community organizations are stepping up to provide shelter and support to those experiencing homelessness.
A 15-year-old girl who was set on fire at a Saskatoon high school earlier this fall is still recovering in hospital.
After years of delays, the province has pulled the plug on an addiction treatment centre in North Bay. A news release from Canadore College on Thursday confirmed the centre won’t be moving forward.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
The City of Elliot Lake said Thursday it has received a $3-million donation from Edward and Suzanne Rogers for the Centennial Arena restoration.
A new report suggests London is falling behind when it comes to housing starts. That’s despite a rapid rise in building permits issued in the city in the past year.
Police say that on Thursday, November 21 between the hours of 1:30 a.m., and 4:30 a.m. the suspect came and went from a residence on Conway Drive.
Canadians will soon receive a temporary tax break on several items, along with a one-time $250 rebate, Prime Minister Justin Trudeau announced Thursday.
Radon is the number one cause of lung cancer in non-smokers in Canada, according to Grey Bruce Public Health Unit.
With the rise of cryptocurrency investment scams, the OPP have launched ‘Project Atlas’ this week, an initiative to clamp down on investment fraud.
It was a busy morning on Sideroad 5 after a driver witnessed two collisions which police say were caused by poor road conditions.
Windsor police are asking for the public’s help identifying a suspect wanted in connection to an alleged serious assault that happened this past summer.
Essex County OPP have shut down an illegal cannabis storefront in Leamington and seized $13,500 in products.
A recent ruling by the NCAA allowing major junior hockey players to maintain college eligibility is starting to change the hockey landscape.
Vancouver Island’s major crime unit is investigating the case of a Victoria teenager whose death was initially ruled an accidental overdose, but has since been reclassified by coroners as a homicide.
One person is dead after a fire that destroyed a home in Nanaimo's south end Wednesday morning.
Another fall storm is forecast to bring high winds to B.C.’s South Coast on Friday, Environment Canada says.
Police are appealing for information on a targeted shooting that resulted in the hospitalization of a man in Kamloops.
British Columbia's independent police watchdog has cleared officers of wrongdoing in a crash where three people were killed south of Kamloops in July of last year.
A B.C. woman who stole more than $14,000 in volunteer-raised funds that were supposed to be spent on school supplies and programs – including hot meals for vulnerable kids – won't spend any time in jail.
B.C. RCMP say one person was killed in a head-on crash on the Trans-Canada Highway near Salmon Arm on Wednesday.
There’s a new way to give this holiday season.
Lethbridge police say four teenagers have been arrested in connection with an autumn attack that saw a 16-year-old badly injured.
The City of Elliot Lake said Thursday it has received a $3-million donation from Edward and Suzanne Rogers for the Centennial Arena restoration.
Students in Sault College’s business accounting program have a new learning pathway that will ultimately give them a head start to a career.
The Transport Safety Board of Canada says the crew of a Porter Airlines flight landing in Sault Ste. Marie in April 2023 didn't realize the plane was so far down the runway.
A Newfoundland energy company's embrace of data centres is raising doubts about eastern Canadian hopes of harnessing the region's howling winds to supply Germany with power from green hydrogen.
An international group led by a Canadian is in Rome this week to push the Catholic Church to adopt a zero-tolerance policy on abuse by clergy.
A company hoping to build a multi-billion-dollar wind-to-hydrogen project in western Newfoundland is eyeing other options as Canada's plans to supply Europe with green energy have not yet materialized.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
