Mortgage Programs VS. Mortgage Solutions

Jeff Evans

I often receive inquiries about a mortgage product, or a mortgage rate. It will be something along the lines of:

“I am looking for a zero down-payment mortgage

“I am looking for a bad credit mortgage”

“I am self employed and need a self employed mortgage

As a mortgage broker, my job is to find you the best deal I can find you. From my end, I deal with mortgage programs, of which cash back mortgages, bad credit mortgages and self employed mortgages are possibilities I can work with. However, a good question for someone who believes they can only get a poor credit mortgage should generally ask is “what kind of mortgage is it possible for me to get?” If you are looking for a “bad credit” mortgage, should I just pull a bad credit mortgage off the shelf and give it to you? NO! I am going to see if I can get you a good credit mortgage first. If I can’t do that, then I will see the next best I can do for you.

Things like this are why I am a mortgage broker and do not work for a bank. I have many mortgage options available from various lenders all with slightly different policies. I spend the time to work with your mortgage application, and figure out the best scenario to make a deal work that meets your needs.

Be careful on someone who just wants to sell you a mortgage rate. There are times with clients in the past where I have had better rate options for a client, but the terms and conditions of the mortgage were such that I was not comfortable offering it. To save that $20 a month with the slightly better rate, will I put you in a mortgage that I know will result in a huge penalty for you to break? Or one that will not allow you to refinance during your term (if you choose)? I will not. I provide the option if you choose and I make a recommendation, but I leave the choice to you.

It does mean that you have to have a degree of trust in my work? Absolutely. However, I will justify it by being open and transparent with you and explaining why I would make a certain choice, and I will give you options if you have them available to you. I am more interested in providing solutions to you than offering mortgage programs.

When you look for a mortgage, look for someone who provides mortgage solutions, not mortgage products.

Author: Jeff Evans

I am a mortgage broker, hair salon owner, squash player, student, and husband, aspiring to do good for people.

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First Time Home Buyers Mortgage Broker Tips And Tricks
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Among the services I provide to my clients, I consider myself to be a "first-time home buyer mortgage broker".  As a first time home buyer mortgage broker, I know how difficult it is to get into the real estate market, particularly in Vancouver, and it brings me a particular amount of job to help someone get past the challenges if being a first time home buyer.

I have recently completed an e-book and will be launching it soon.  I believe it will be very helpful for not just first-time home buyers, but for anyone who is not as knowledgeable in residential mortgage lending, about how to make your home buyer mortgage broker application appealing to a mortgage lender.

As a sneak preview, here are three tips on improving your mortgage application as a first-time home buyer.

3 Home Buyer Mortgage Broker Tips

  1. Take advantage of the home-buyers plan to fund your down-payment.  This program is not technically ONLY for first-time home buyers, but all first-time home buyers are eligible.  Under the plan, you can borrow up to $25,000 from your RRSP for the purchase of an owner-occupied residence.  If you and your spouse are both applying, then you can withdraw $25,000 each. It is a loan, so it has to be paid back over 15 years (or 1/15th of the loan will be added to income for that year).  However, there is no withholding when you withdraw it, it does not have to all be declared as income on any given year, and you don't even have to use all of it for down-payment!  You can use it for any purpose that you need it for. A good mortgage broker, like myself, can help you with some of the finer details and complex situations that often arise from these situations.
  2. Make sure you pay your bills on time. If you have a high balance on your loan, or you have a lot of debt, those also have a significant negative impact on your credit score, but you can get the bills down and there is no record of your high debt levels.  However, when you miss a bill payment, it stays on your credit bureau for 6-7 YEARS.  This not just negatively impacts your credit score, but lenders look at this when assessing risk, and they have been particularly uncompromising and (unreasonable, paranoid, strict...and other words that I cannot put in print) in the last few years.  While you likely do not have to wait 6-7 years to become bankable if you have had gone through a period of bad credit, the less negative credit on the bureau, the better. At least make the minimum required payments and you will go a long way to making yourself appealing to them.
  3. Having no credit is just as bad as having bad credit. Many people feel that not requiring credit should prove your ability to pay your bills and should be good evidence of credit-worthiness.  This is not how mortgage lenders think.  If you currently do not have any credit, then you do not have any documentation that you are an acceptable credit risk, and no matter how strong your income is, you will have difficulty obtaining a prime mortgage approval.  Make sure you have at least 3 different credit facilities in your name.  (Secondary credit cards in a spouses name are not considered acceptable for establishing your credit).

I am excited to launch my home buyer mortgage broker e-book soon, in which I go into much greater detail and give many different ideas to help home buyers prepare for home ownership, but as a mortgage broker in Vancouver, you are welcome to contact me in the meantime to discuss your circumstances and see if there are any options for you.

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Good news regarding OSFI rule changes
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This is just a quick note to let viewers know that IF you are one of the people with 20% or more down-payment and are in a position that the new OSFI rule changes affect your pre-qualification, that I can extend the current guidelines into the new year by up to 120 days provided that I have an application and am able to get a pre-approval in place with a lender for you before January 1.Read More

OSFI B20 mortgage guideline changes 2017 – Part 2
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This is a continuation of the article published here about the OSFI B20 morgage guidline changes for 2017.

If you are familiar with mortgage brokers at all (which you probably aren't) you would know that we also have alternative sources of lending for situations where a mortgage borrower will not qualify with a prime institution.  We have what we call "B" lenders, who have higher rates but more flexible lending criteria, and we have private lenders, which are individuals and corporations who can lend money on on anything that suits them.Read More