Appraisals

Appraisals play an important role in the lending industry. They are used by lenders to help determine the lending value of a property, but they are also useful to provide other information that is needed when the lenders are assessing someone’s application.  In addition to the final value, lenders will look at some of the … Read more…

Downpayment Verification

In our previous blog post on the Mortgage Approval Process, we touched on the Compliance part of the approval. Downpayment verification, in particular, can be the most cumbersome part of Compliance fulfillment. Before we go into detail about the document requirements, here is a little explanation as to why this process has evolved to where … Read more…

Mortgage Approval Process

The mortgage approval process has 5 fundamental stages: the collection of information, submission to the lender, appraisal, document review, and file complete. Each stage forms a critical part of the process and can have an impact on whether or not your financing is approved. The Collection of Information During this stage, you have filled out … Read more…

Owner Occupied and Rental Properties

With the many mortgage rule changes implemented over the last few years, financing has evolved resulting in lenders underwriting owner occupied and rental properties differently. The reason boils down to risk assessment. Lenders take the view that properties that are declared to be primary residence or second home, carry the least amount of risk in … Read more…

Well Water

Thinking of purchasing a property serviced by well water? You can save yourself potential stress if you include a “subject to a satisfactory water potability test” along with your other subjects, when you write the offer to purchase. When you are excited about your home purchase, it can be easy to rely on the Seller’s … Read more…

Income Verification & Qualifying

There are a few key components that play a role in mortgage approvals: income, verification documents, level of down payment, and credit score. One of the most important items in the initial assessment of someone’s application, is the level of income that is available for each person that will be on the mortgage. There are … Read more…

Commercial Financing

Commercial Financing Do you have a Commercial project that requires financing? Here are a few basic guidelines that you need to know… Examples of Property Types: Multi-family Residential units Retail Industrial Office Mixed Use Healthcare Apartment Buildings Office Buildings Single Purpose Shopping Malls Construction Loan Amounts & Terms: Usually commercial lenders have a minimum loan … Read more…

Rental Property Financing

The guidelines surrounding rental property financing have changed over the last few years. There are a few variables that play a role in determining which lender is the right fit for you. How Many Properties You Already Own Many banks now, will not support an application for financing if multiple income properties are already owned, … Read more…

Minimum Downpayment

On December 11th, 2015, the Canadian federal government announced a change impacting minimum downpayment amounts for homes valued between $500,000 and $1,00,000. The change took effect on February 15th, 2016.  The minimum downpayment for new insured mortgages is now 5 per cent to 10 per cent for the portion of the house price above $500,000. … Read more…

Paperwork! Enough Already!!

When you are applying for a mortgage, how organized you are with your paperwork plays a part in how smoothly the process will go, and whether or not you secure the final approval. As usual, there are certain documents that are critical in the credit review process that are needed up front. However, now the … Read more…