This month, we want to explain the MAIN difference between a Mortgage Client going to a Bank OR using a Licensed Mortgage Broker and why it is so CRITICAL .
Simply put, getting a Mortgage Approval, Let alone a Maximized Purchasing Budget in today’s Mortgage Market is very complicated and has many factors.
BANKS AND LENDERS DO NOT ALL USE THE SAME RULES WHEN UNDERWRITING A MORTGAGE DEAL!
Without access to Multiple Lenders Interpretation of the B20 Mortgage Guidelines and Rules, Your Clients are not getting a Full Spectrum of Lending Opportunities, possibly leading to Lower Purchasing Budgets and Declines.
Here are a Few of the Factors that are NOT AVAILABLE from ALL Banks and Lenders:
Income Sources – The ability to use Child Care Benefit, Full Amount of Spousal Income, Probationary Income, Part Time Income with Less than 2 year average, Full Pre-Maternity Leave Income, Grossed up Pension Income, Foster Income and the Whole Spectrum of Self Employed Income scenarios, including Stated Income.
Down Payment – Options to use Gifted Down from Non- Immediate Family Member and Spouse, Flexdown (Borrowed, Zero saved Down Payment), Out of Country Funds just deposited into Canadian account less than 30 days, Using the Government’s First Time Home Buyer Initiative (Not all Lenders have Adopted this Policy).
Credit Scores – Access to Lenders that allow Full GDS/TDS Ratios to be used with Lower Credit Scores (Under 685), Allow co-signors as Low as 575 Score, Plus Access to “B” Lenders and Private Lenders when needed.
Factors that Affect GDS/TDS Debt Ratios Allowing Increased Purchasing Budgets – Reduced Factors used for Student Loans and Lines of Credit, Reduced Heating Calculations and Factors, Using only 50% of Condo fees, Property Tax, Rental Income Claculation Worksheet that allows Net Surplus Income.
Property Types – Allow Smaller Residences (500 SF for Single and 300 SF for Condos), Acreages above 5 Acres, Modular Homes and Mobile Homes, Vacation Properties and Age Restricted Properties, to name a few.
Additional Factors – Lower Acceptable Closing Cost Amounts, Bridge Financing, Business Debt Removed from Personal and varying Purchase Plus Guidelines.
The Ability to Match a Client to the Optimum Lenders Increases Approval Chances and Purchasing Budgets.