Blog
Due to change in mortgage legislation, it is now required that any client qualifying for a product other than a 5 year fixed rate must be able to carry the mortgage at the benchmark rate in the event of a rate rise. This is to ensure a client that qualifies for a low 1-year rate…
April
The ability to make payments is a large factor in lending decisions, but it is one of many factors. Strong repayment history (credit), character, collateral, capacity and capital are all evaluated in the lending decision. The 5 C’s of credit. Now certain lenders will make exceptions on a deal by deal basis, but as a good…
April
As a broker, we have a third party backed by Manulife Financial that provides life and disability insurance to clients who elect this coverage. It is not mandatory, however, it is highly recommended that our clients have some form of work, independent insurance, or mortgage life coverage.
March
…..I don’t want to show them how I spend my money. The lender is following the Anti-Money Laundering guidelines that are set out by the Federal Government. Any funds that have not been in an account for 90 days require their source of origin established. The lender is not looking to see where you spend…
March
The market has started to tier pre-approval rates from approval rates. This is due to the fact that pre-approvals tend to be held a longer time frame than approvals, which the lender runs more risk on the rates the longer they have to hold them. Also, lenders have to hold aside a percentage of funds…
March
A pre-approval can be done on the spot and have an automatic response back within minutes of the application through some lenders if their rate is the best. This works great for clients where credit, ratios, and down payment are very straight forward. Otherwise, it takes about 24 hours to have a lender look and…
March
Does pulling my credit affect my credit score? …and how many times do you pull it? It does have an impact, but a very minimal one compared to the benefit of knowing your financial position and it can be gained back very quickly from good future payments. Mortgage brokers are not like financing departments at…
February
What fees will banks absorb for me? When it comes to Purchases, there are lenders that will pick up the appraisal cost if required. On Switches/Transfers all fees except for the discharge fee (approx. $250.00) are picked up by the new lender. On Refinances there are lenders that will pick up appraisal and legal fees…
February
I wish we could, but for accuracy, it’s really hard to do this. We can do a verbal application, but we need to pull a credit report which requires written consent. A credit report is much more than just a score, it’s a lifetime of payment history which can help get a deal approved or…
February
… and should I shop around for my best broker? Contrary to popular belief, mortgage brokers are not all cut from the same cloth so make sure you’re comfortable and your broker is qualified to earn your business. Every broker has a different experience level, employment background, and understanding of policy/procedure. Also, every brokerage is…
February