• How Lenders Have Made Getting A Mortgage A Terrible Experience

    A young couple was referred to me from a realtor. They were young, getting married and starting their careers. Sam and Janet were buying their first home and they were sharing their dreams with me. I knew that I had picked the right career. I was helping clients solve their financial needs but more importantly, deepening relationships to help improve their lives. You see, I was able to help them when they moved up to a larger home, had kids and did a renovation on their backyard.

    Oh how things have changed…

    Banks and lenders appreciated clients in the past. They were flexible, and were open to helping clients achieve their home purchases. So what happened? Why has it changed?

    These are the major factors:

    1. Fraud – some bad people created documents to for the lenders and so now the mortgage companies ask for much more information.
    2. Government – our Canadian government wants to know all about us. The future will only get worse as they will track all of our spending and income for tax purposes.
    3. Monoline mortgage lenders – although they have provided the chartered banks with competition, their rules from investors have left individuals frustrated and in some cases extremely angry with their lack of having an open, common sense approach.

    So what has happened for individuals seeking a mortgage?

    • ID – in many cases brokers are asking for passports and drivers licenses
    • Credit – minimum credit scores without listening to what may have happened in the past
    • Income – banks and lenders used to ask for a job letter and a paystub. Now be prepared to provide two years T fours, two years anyways, two years T1 generals and three months bank statements to prove deposits from their income.

    Having been in the mortgage industry for 30 years was something very special. I no longer feel this way. When clients are treated with no respect, appreciation or flexibility it leaves a very bad taste in their minds. The good feeling of clients is not seen as in years gone by. Our mortgage consumers have voiced their opinion and it usually results in upset clients, upset with us. If you’re in the lending business for the right reasons, you do care about your personal relationships. Although Sean and I have done a better job preparing our clients, they remain frustrated.

    Going forward these lenders have had an amazing run. I really hope they start appreciating our clients. As of now, I have never witnessed such adversarial displays of communication like in the last six months. This has to end.


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