"What are examples of factors you consider for suitability of a mortgage product for a borrower, lender or investor?"
- The amount the borrower can afford for monthly mortgage payments.
- If the customer can get out of the mortgage.
- The ability to repay equity, depending on the property’s condition and location.
- Length of the mortgage term, costs, and charges at time of renewal.
- Risk tolerance of the borrower.
- Does the client’s risk tolerance match a mortgage that does not have fixed payments?
- Equity in the property.
- The borrower's long-term and short-term goals.
- Can the client service the debt?
- Can the borrower make mortgage payments with his/her income?
- Current mortgage rates and discounts that may not be in effect in the long-term.
- Open and semi-open features of the mortgage, if the borrower will have more money in the future.
- The borrower’s employment status and future plans.
- Life circumstances.
- Amount of the down payment, amount of equity in the property, and location of the property.
- Job stability, loan to value exposure, whether the individual is a first time buyer or a seasoned borrower.
- Type of industry the individual works in, the individual’s lifestyle and cash flow.
- The borrower’s income, age and stage in life.
- Risk tolerance and the rate of return needed by the investor/lender.
- An investor needs a steady monthly cash flow in order to participate in a mortgage investment.
- The investor’s net worth, experience in investing, income, goals and objectives.
- The property type and location.
- The purpose of the loan.