The Reality of Canadian Mortgages

Qualifying for a Canadian Mortgage in 2016

One of my colleagues wrote a blog last year about the similarities between Beer, Biking and Mortgages.  I found it very entertaining and refreshing as mortgage financing isn’t the most riveting of subjects.

A little humour can be the best medicine in this time of dotting your i’s and crossing your t’s. When people think about applying for mortgage financing it often feels like daunting uncharted territory.  The thought process is something like this.  “I loved the house and I want it…..what do I have to do to get it….FAST!??  Will I qualify??  What is my credit like, hmmmm,  I’ve never checked???”  

I find that even when folks have had a mortgage for years, the same feeling resurfaces when they want to make a change….upsizing, downsizing, money for renovations, debt consolidation.  If the last time they purchased or remortgaged was 5 or 10 years ago, the qualification process was a heck of a lot easier.  Our government has been stringent (and thank goodness they have) in tightening our mortgage rules , making sure that consumers who hold mortgages in our great country actually qualify and are able to repay.  That can mean a little more gray hair before reaching the promise land, AKA money in hand.

“What do you mean I don’t qualify because the lenders now calculate a 3% monthly payment on the balance on a line of credit.  They only make me pay interest only?”

“I only have one collection on my credit bureau and my credit score is over 600….which apparently is the minimum score?”  I can’t get best rates???”

There seems to be a fine line between due diligence with our lenders and empathizing with our client regarding the significant changes that we are experiencing.  I’d like to send all of my clients to see “The Big Short” about the subprime mortgage market in the United States which was up for an Academy Award for Best Picture.  It is mind boggling that it is a true story and that the lack of regulation in the United States created corruption to that level and forced  one of the biggest housing collapses in history.  

Mortgage financing even in today’s world can be simplified even in today’s world.  An expert mortgage broker is always happy to help navigate every step.


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