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Suitability of a Mortgage Product for a Borrower, Lender or Investor - Examples (Supplied by Industry Members)

"What are examples of factors you consider for suitability of a mortgage product for a borrower, lender or investor?"
 
  1. The amount the borrower can afford for monthly mortgage payments.
  2.  
  3. If the customer can get out of the mortgage.
  4.  
  5. The ability to repay equity, depending on the property’s condition and location.
  6.  
  7. Length of the mortgage term, costs, and charges at time of renewal.
  8.  
  9. Risk tolerance of the borrower.
  10.  
  11. Does the client’s risk tolerance match a mortgage that does not have fixed payments?
  12.  
  13. Equity in the property.
  14.  
  15. The borrower's long-term and short-term goals.
  16.  
  17. Can the client service the debt?
  18.  
  19. Can the borrower make mortgage payments with his/her income?
  20.  
  21. Current mortgage rates and discounts that may not be in effect in the long-term.
  22.  
  23. Open and semi-open features of the mortgage, if the borrower will have more money in the future.
  24.  
  25. The borrower’s employment status and future plans.
  26.  
  27. Life circumstances.
  28.  
  29. Amount of the down payment, amount of equity in the property, and location of the property.
  30.  
  31. Job stability, loan to value exposure, whether the individual is a first time buyer or a seasoned borrower.
  32.  
  33. Type of industry the individual works in, the individual’s lifestyle and cash flow.
  34.  
  35. The borrower’s income, age and stage in life.
  36.  
  37. Risk tolerance and the rate of return needed by the investor/lender.
  38.  
  39. An investor needs a steady monthly cash flow in order to participate in a mortgage investment.
  40.  
  41. The investor’s net worth, experience in investing, income, goals and objectives.
  42.  
  43. The property type and location.
  44.  
  45. The purpose of the loan.
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