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Applying for a mortgage?: Questions you should be prepared to answer

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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.

POLITICAL TARGETS?

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.

OTHER QUESTIONS YOU MAY ENCOUNTER

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.

KEEP RECORDS, REHEARSE ANSWERS

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.

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Trump is consistently inconsistent on abortion and reproductive rights

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CHICAGO (AP) — Donald Trump has had a tough time finding a consistent message to questions about abortion and reproductive rights.

The former president has constantly shifted his stances or offered vague, contradictory and at times nonsensical answers to questions on an issue that has become a major vulnerability for Republicans in this year’s election. Trump has been trying to win over voters, especially women, skeptical about his views, especially after he nominated three Supreme Court justices who helped overturn the nationwide right to abortion two years ago.

The latest example came this week when the Republican presidential nominee said some abortion laws are “too tough” and would be “redone.”

“It’s going to be redone,” he said during a Fox News town hall that aired Wednesday. “They’re going to, you’re going to, you end up with a vote of the people. They’re too tough, too tough. And those are going to be redone because already there’s a movement in those states.”

Trump did not specify if he meant he would take some kind of action if he wins in November, and he did not say which states or laws he was talking about. He did not elaborate on what he meant by “redone.”

He also seemed to be contradicting his own stand when referencing the strict abortion bans passed in Republican-controlled states since the Supreme Court overturned Roe v. Wade. Trump recently said he would vote against a constitutional amendment on the Florida ballot that is aimed at overturning the state’s six-week abortion ban. That decision came after he had criticized the law as too harsh.

Trump has shifted between boasting about nominating the justices who helped strike down federal protections for abortion and trying to appear more neutral. It’s been an attempt to thread the divide between his base of anti-abortion supporters and the majority of Americans who support abortion rights.

About 6 in 10 Americans think their state should generally allow a person to obtain a legal abortion if they don’t want to be pregnant for any reason, according to a July poll from The Associated Press-NORC Center for Public Affairs Research. Voters in seven states, including some conservative ones, have either protected abortion rights or defeated attempts to restrict them in statewide votes over the past two years.

Trump also has been repeating the narrative that he returned the question of abortion rights to states, even though voters do not have a direct say on that or any other issue in about half the states. This is particularly true for those living in the South, where Republican-controlled legislatures, many of which have been gerrymandered to give the GOP disproportionate power, have enacted some of the strictest abortion bans since Roe v. Wade was overturned.

Currently, 13 states have banned abortion at all stages of pregnancy, while four more ban it after six weeks — before many women know they’re pregnant.

Meanwhile, anti-abortion groups and their Republican allies in state governments are using an array of strategies to counter proposed ballot initiatives in at least eight states this year.

Here’s a breakdown of Trump’s fluctuating stances on reproductive rights.

Flip-flopping on Florida

On Tuesday, Trump claimed some abortion laws are “too tough” and would be “redone.”

But in August, Trump said he would vote against a state ballot measure that is attempting to repeal the six-week abortion ban passed by the Republican-controlled Legislature and signed by Republican Gov. Ron DeSantis.

That came a day after he seemed to indicate he would vote in favor of the measure. Trump previously called Florida’s six-week ban a “terrible mistake” and too extreme. In an April Time magazine interview, Trump repeated that he “thought six weeks is too severe.”

Trump on vetoing a national ban

Trump’s latest flip-flopping has involved his views on a national abortion ban.

During the Oct. 1 vice presidential debate, Trump posted on his social media platform Truth Social that he would veto a national abortion ban: “Everyone knows I would not support a federal abortion ban, under any circumstances, and would, in fact, veto it.”

This came just weeks after Trump repeatedly declined to say during the presidential debate with Democrat Kamala Harris whether he would veto a national abortion ban if he were elected.

Trump’s running mate, Ohio Sen. JD Vance, said in an interview with NBC News before the presidential debate that Trump would veto a ban. In response to debate moderators prompting him about Vance’s statement, Trump said: “I didn’t discuss it with JD, in all fairness. And I don’t mind if he has a certain view, but I don’t think he was speaking for me.”

‘Pro-choice’ to 15-week ban

Trump’s shifting abortion policy stances began when the former reality TV star and developer started flirting with running for office.

He once called himself “very pro-choice.” But before becoming president, Trump said he “would indeed support a ban,” according to his book “The America We Deserve,” which was published in 2000.

In his first year as president, he said he was “pro-life with exceptions” but also said “there has to be some form of punishment” for women seeking abortions — a position he quickly reversed.

At the 2018 annual March for Life, Trump voiced support for a federal ban on abortion on or after 20 weeks of pregnancy.

More recently, Trump suggested in March that he might support a national ban on abortions around 15 weeks before announcing that he instead would leave the matter to the states.

Views on abortion pills, prosecuting women

In the Time interview, Trump said it should be left up to the states to decide whether to prosecute women for abortions or to monitor women’s pregnancies.

“The states are going to make that decision,” Trump said. “The states are going to have to be comfortable or uncomfortable, not me.”

Democrats have seized on the comments he made in 2016, saying “there has to be some form of punishment” for women who have abortions.

Trump also declined to comment on access to the abortion pill mifepristone, claiming that he has “pretty strong views” on the matter. He said he would make a statement on the issue, but it never came.

Trump responded similarly when asked about his views on the Comstock Act, a 19th century law that has been revived by anti-abortion groups seeking to block the mailing of mifepristone.

IVF and contraception

In May, Trump said during an interview with a Pittsburgh television station that he was open to supporting regulations on contraception and that his campaign would release a policy on the issue “very shortly.” He later said his comments were misinterpreted.

In the KDKA interview, Trump was asked, “Do you support any restrictions on a person’s right to contraception?”

“We’re looking at that and I’m going to have a policy on that very shortly,” Trump responded.

Trump has not since released a policy statement on contraception.

Trump also has offered contradictory statements on in vitro fertilization.

During the Fox News town hall, which was taped Tuesday, Trump declared that he is “the father of IVF,” despite acknowledging during his answer that he needed an explanation of IVF in February after the Alabama Supreme Court ruled that frozen embryos can be considered children under state law.

Trump said he instructed Sen. Katie Britt, R-Ala., to “explain IVF very quickly” to him in the aftermath of the ruling.

As concerns over access to fertility treatments rose, Trump pledged to promote IVF by requiring health insurance companies or the federal government to pay for it. Such a move would be at odds with the actions of much of his own party.

Even as the Republican Party has tried to create a national narrative that it is receptive to IVF, these messaging efforts have been undercut by GOP state lawmakers, Republican-dominated courts and anti-abortion leaders within the party’s ranks, as well as opposition to legislative attempts to protect IVF access.

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The Associated Press receives support from several private foundations to enhance its explanatory coverage of elections and democracy. See more about AP’s democracy initiative here. The AP is solely responsible for all content.

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Saskatchewan Party’s Scott Moe, NDP’s Carla Beck react to debate |

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Saskatchewan‘s two main political party leaders faced off in the only televised debate in the lead up to the provincial election on Oct. 28. Saskatchewan Party Leader Scott Moe and NDP Leader Carla Beck say voters got a chance to see their platforms. (Oct. 17, 2024)

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Saskatchewan political leaders back on campaign trail after election debate

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REGINA – Saskatchewan‘s main political leaders are back on the campaign trail today after hammering each other in a televised debate.

Saskatchewan Party Leader Scott Moe is set to make an announcement in Moose Jaw.

Saskatchewan NDP Leader Carla Beck is to make stops in Regina, Saskatoon and Prince Albert.

During Wednesday night’s debate, Beck emphasized her plan to make life more affordable and said people deserve better than an out-of-touch Saskatchewan Party government.

Moe said his party wants to lower taxes and put money back into people’s pockets.

Election day is Oct. 28.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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