Okay...that might be a bit harsh. You don't really need to provide a kidney, maybe they'll take one of your children instead?
I was on the phone today with one of our Lending Parnter Liason's and his parting words to me were, "I would hate to be a Canadian getting a mortgage in Canada today."
I agreed with him.
Sure, money is cheap - but access to that money is becoming increasingly difficult. Lenders are finding ways to say "NO" more than they are trying to find reason's to say "YES".
It's all a question of Risk.
Want to know what new and exciting things are on the Horizon?
Well, for starters...try to avoid buying a "Heritage Home"...this is a house that is 100 years old or older. In some communities these homes are considered as Heritage Homes and a lot of lenders will not provide mortgage financing on them.
Why? Because their investors see it as being too risky. It doesn't matter if the home has been upgraded and has no structural integrity issues...the lenders only like to see as far as their nose on this matter and company's like Street Capital Financial and Canadian First Financial Bank are just not going to move on these items. Thankfully other lenders are not so closed minded on this sort of thing.
The next thing that has become a growing concern for some lenders is the use of Overtime and Bonus Income...for some lenders a typical 2 year average is fine...for others, like CFF and Merix/Lendwise...they will only use 25% of a 2 year average.
Silly right? We agree - but because of the doom and gloom of the current oil crisis - the lenders are beginning to get scared of the potential of default due to reduced earnings...and some lenders it's across the board...that means it's not limited to just the Oil and Gas industries...CFF won't even accept the 2 year average Overtime earnings for a NURSE!
Family Credit is also a recent development. Some lenders won't accept a file without both spouses on file. If you had some credit issues in your past and never got new credit afterwards but your spouse has excellent credit and excellent income and can afford the deal on their own...lender's can still say "NO".
First National Financial has such a policy in place...and so does RMG and MCAP. If one spouse will jeopardize a mortgage - the broker normally can proceed with the stronger spouse and carry on...but with increased risk potential - this is becoming a scarce opportunity.
That's why it's important to use a Broker...more particularly - FOCUS Mortgage Solutions.
We stay on top of this stuff so you don't have to.
So, rest assured you don't actually need to supply a Kidney - or a child - for your next mortgage...just know that there are a lot of things that can potentially stand in your way to get a mortgage through. We've listed just a few of the most recent animals we've come across...but there are a whole lot more out there!
Don't even get us started on Scotia Bank and TD Canada Trust...we'd be here for hours.
Be smart when it comes to getting a mortgage - be sure to use FOCUS Mortgage Solutions. It's our JOB to make sure we know the deterrents so we can get the deal done right the first time!