How to Get a Mortgage When the Bank Says NO!

Hey there, aspiring homeowners! Are you tired of hearing that dreaded word “NO” from the banks when you’re on the quest for a mortgage? Fear not, because we’re here to spill the beans on how to turn that “NO” into a resounding “YES!” Buckle up and get ready to dive into the world of mortgage magic!

1. Meet Sean Rampersaud (me)

• We’re your friendly neighbourhood mortgage gurus, armed with a treasure trove of insider knowledge and connections to make your dreams come true.
• We’ve seen it all and conquered the mortgage maze. Now, we’re sharing our secrets with you!

2. Four Types of Lenders, One Solution

• Banks, Mortgage-only lenders, B lenders, and Private lenders: we’ve got connections with them all.
• Each type of lender offers unique opportunities, and we’ll help you navigate the landscape to find the perfect match for your mortgage needs.

3. The Power of a Skilled Mortgage Broker

• Don’t settle for just any broker—choose one with access to all lenders, including those elusive B lenders and credit unions.
• An experienced broker is your secret weapon. They know the niches of every lender, helping you find the best fit for your situation.

4. Volume Matters

• Working with a high-volume broker is key. They’ve dealt with a myriad of situations recently and can handle any curveball that comes their way.
• Don’t let your dreams be handled by a broker who’s been hibernating while you’re trying to make things happen.

5. Credit Unions to the Rescue

• Credit unions, like Servus Credit Union, can be a goldmine for securing that elusive mortgage.
• Their flexible terms and personalized approach can make your dream a reality.

6. The Art of Putting Down 20%

• If you want to avoid dealing with insurers, consider putting down 20% or more on your property.
• The more equity you have, the less risk the lenders perceive, and the more they’ll be jumping at the chance to finance your mortgage.

7. A Broker’s Relationship with Insurers

• Find a mortgage broker who has a solid relationship with insurers.
• They can help your unique deal make sense to the insurers, making your application shine brighter and increasing your chances of approval.

8. Major Municipalities are a Hot Spot

• Purchase properties in major municipalities like Edmonton, Calgary, and others.
• These areas attract lenders like bees to honey, making it easier to find the right match for your mortgage needs.

9. The Condition of the Property Matters

• When considering a property, make sure it’s in good condition.
• Lenders prefer properties that are ready for occupancy without extensive repairs or renovations.

10. Temporary Financing Solutions

• If you have special circumstances, such as being recently discharged from bankruptcy or lacking established credit, don’t worry!
• Temporary financing through private lenders or B lenders can act as a stepping stone toward securing your dream mortgage.

11. Leverage Grants and Incentives

• Take advantage of grants such as the first-time home buyers incentive or the RRSP Program.
• These programs offer financial boosts that can help you bridge the gap to homeownership.

12. The Power of Submitting to All 3 Insurers

• Ensure your mortgage broker submits your application to all three insurers.
• Don’t miss out on any potential options that could lead to a positive outcome.

13. The Importance of a Motivated Mortgage Broker

• Work with a broker who loves to get paid and gets things done!
• Their motivation and determination will work in your favor, ensuring a smooth and efficient mortgage process.

Question and Answer Section

Q: What if I’ve been turned down by multiple banks?

Can I still get a mortgage? A: Absolutely! Don’t lose hope if the banks have said no. There are alternative lenders, such as mortgage-only lenders, B lenders, and private lenders, who have different criteria and are more open to borrowers with unique situations. Working with an experienced mortgage broker who has access to these lenders will increase your chances of finding a suitable mortgage solution.

Q: How can I find a high-volume mortgage broker?

A: When searching for a mortgage broker, ask about their track record and volume of deals they handle. You can also inquire about their experience and the number of lenders they work with. Additionally, read reviews and testimonials from their previous clients to gauge their expertise and success rate.

Q: Why should I consider credit unions for my mortgage?

A: Credit unions offer several advantages for borrowers. They often have more flexible lending criteria compared to traditional banks. Credit unions are member-owned, meaning they prioritize personalized service and take into account your specific circumstances. They can be an excellent option if you’re seeking a mortgage but have faced challenges with traditional lenders.

Q: Do I have to put down 20% to avoid mortgage default insurance?

A: While putting down 20% or more can help you avoid mortgage default insurance (also known as CMHC insurance), it’s not a requirement. You can still obtain a mortgage with a smaller down payment, but you will need to pay the insurance premium, which protects the lender in case of default. It’s best to discuss your options with a mortgage broker to determine the most suitable approach for your financial situation.

Q: Why is it important for my broker to have a relationship with insurers?

A: A broker’s relationship with insurers can be beneficial when presenting your mortgage application. They can help navigate the intricacies of your unique situation and provide additional context to the insurer. A strong relationship with insurers increases the likelihood of your application being viewed favorably, potentially leading to better mortgage terms and approval.

Q: Can I still get a mortgage if I’m purchasing a property in a smaller town?

A: While major municipalities tend to have more lender options, you can still secure a mortgage for a property in a smaller town. It may require some additional research and a mortgage broker who specializes in that specific area. Working with a broker who has knowledge of lenders operating in smaller towns can help you find suitable mortgage solutions.

Remember, it’s essential to consult with a qualified mortgage professional to discuss your specific circumstances and explore the best options available to you. Don’t hesitate to reach out to us at 780-278-4847 for personalized guidance tailored to your mortgage needs.

Cons of Dealing With a Bank for a Mortgage

While banks are a common choice for obtaining a mortgage, there are a few potential drawbacks to consider:

1. Stricter criteria: Banks often have stricter lending criteria compared to other types of lenders. They may require higher credit scores, stable employment history, and a lower debt-to-income ratio. This can make it challenging for borrowers with unique or non-traditional financial situations to secure a mortgage.

2. Limited product options: Banks typically offer a limited range of mortgage products. These products may not cater to the specific needs or circumstances of every borrower. For example, if you’re self-employed or have a non-standard income source, a bank may not have a mortgage product that suits your situation.

3. Lengthy approval process: Banks usually have more bureaucratic processes, resulting in a longer approval timeline. The extensive documentation requirements and internal review procedures can slow down the mortgage application process, potentially causing delays in securing financing.

4. Lack of flexibility: Banks generally have less flexibility when it comes to negotiating terms and conditions. They often adhere to standardized mortgage guidelines, leaving little room for customization. This can be problematic if you require specific features or more flexible repayment options.

5. Limited accessibility: Banks operate during regular business hours, which may not align with everyone’s schedule. It can be challenging to coordinate appointments or get timely responses during your mortgage application process. This lack of accessibility can be frustrating, particularly when you have urgent questions or concerns.

6. Customer service variations: The quality of customer service at banks can vary widely. While some banks excel in providing personalized and attentive service, others may be more focused on transactional processes. It’s crucial to research and choose a bank known for its excellent customer service to ensure a smoother mortgage experience.

Remember, these potential cons are not exclusive to all banks, and each bank may have its own unique policies and practices. It’s essential to weigh these drawbacks against the benefits and consider alternative lenders or mortgage brokers who can offer more tailored solutions for your specific needs.

Benefits of Working With a Mortgage Broker

Working with a mortgage broker offers several advantages over dealing directly with a bank:

1. Access to multiple lenders: Mortgage brokers have access to a wide network of lenders, including banks, credit unions, mortgage-only lenders, B lenders, and private lenders. This means they can shop around on your behalf to find the best mortgage options and interest rates that align with your specific needs and financial situation.

2. Expert guidance and advice: Mortgage brokers are experts in their field and can provide valuable guidance throughout the mortgage process. They understand the complexities of different mortgage products, interest rates, and terms. With their knowledge and experience, they can help you navigate through the options, explain the fine print, and ensure you make informed decisions.

3. Tailored solutions for unique situations: Mortgage brokers specialize in finding solutions for borrowers with unique circumstances. Whether you’re self-employed, have a low credit score, or face other challenges, a mortgage broker can leverage their extensive network to connect you with lenders who specialize in working with borrowers like you. They can present your case in the best possible light, increasing your chances of mortgage approval.

4. Time-saving convenience: Instead of individually approaching multiple lenders, a mortgage broker streamlines the process for you. They handle the research, paperwork, and negotiations on your behalf, saving you time and effort. They also have established relationships with lenders, which can expedite the application and approval process.

5. Negotiation power: Mortgage brokers have the expertise to negotiate with lenders to secure favorable terms and interest rates on your behalf. They can leverage their knowledge of the market and lender policies to get you the best possible mortgage deal. This can potentially save you thousands of dollars over the life of your mortgage.

6. Personalized service: Mortgage brokers provide personalized service tailored to your unique needs. They take the time to understand your financial goals, lifestyle, and preferences to find the mortgage that best fits your situation. They act as your advocate throughout the process, ensuring your best interests are represented.

7. Continued support: A mortgage broker’s job doesn’t end once the mortgage is approved. They can provide ongoing support and advice, even after you’ve moved into your new home. They can assist with refinancing, renewals, or any questions or concerns you have throughout the life of your mortgage.

8. No additional cost to you: In most cases, mortgage brokers are paid by the lenders, meaning their services come at no additional cost to you. They are motivated to find the best mortgage solution for your needs because their compensation depends on your satisfaction.

Working with a mortgage broker can simplify the mortgage process, provide access to a wider range of options, and ensure you make informed decisions. Their expertise, network, and personalized service make them valuable allies in your journey towards homeownership.

Banks vs. Mortgage Brokers: Why Mortgage Brokers Reign Supreme

When it comes to securing a mortgage, many people default to approaching their local bank. While banks are a familiar choice, there’s a lesser-known superhero in the mortgage realm – the mortgage broker. In this blog, we’ll explore the advantages of working with a mortgage broker and why they often outshine banks in the mortgage game.

1. Access to Multiple Lenders: Banks offer their own mortgage products, limiting your options. On the other hand, mortgage brokers have access to a vast network of lenders, including banks, credit unions, and alternative lenders. This means they can scour the market to find the perfect mortgage match for your unique needs and financial situation.

2. Tailored Solutions for Unique Circumstances: Are you self-employed or facing credit challenges? Mortgage brokers specialize in finding solutions for borrowers with unique circumstances. They have the knowledge and connections to connect you with lenders who understand your situation and are willing to work with you. Say goodbye to cookie-cutter solutions and hello to personalized mortgage options.

3. Expert Guidance and Advice: Navigating the mortgage landscape can be daunting. Mortgage brokers are experienced professionals who can guide you through the process, explaining complex terms, comparing interest rates, and helping you understand the fine print. With their expertise, you can make informed decisions and feel confident about your mortgage choices.

4. Time-Saving Convenience: Shopping around for a mortgage can be time-consuming. Mortgage brokers streamline the process by doing the legwork for you. They research, compare, and negotiate on your behalf, saving you valuable time and effort. With a mortgage broker in your corner, you can focus on other aspects of homeownership, knowing that your mortgage needs are being taken care of.

5. Negotiation Power: Mortgage brokers are skilled negotiators. They understand the ins and outs of the mortgage market and lender policies. Armed with this knowledge, they can negotiate with lenders to secure competitive interest rates and favorable terms on your behalf. This can potentially save you thousands of dollars over the life of your mortgage.

6. Personalized Service and Advocacy: Your mortgage broker is your ally, working to achieve your homeownership goals. They take the time to understand your financial aspirations, lifestyle, and preferences. With this knowledge, they customize their service to find the mortgage that aligns perfectly with your needs. They act as your advocate throughout the process, ensuring your best interests are represented.

7. Continued Support: The relationship with your mortgage broker doesn’t end once you’ve obtained your mortgage. They provide ongoing support and guidance, even after you’ve moved into your dream home. Whether you need assistance with refinancing, renewals, or have questions along the way, your mortgage broker is there to help you navigate the complexities of homeownership.

Conclusion: When it comes to securing a mortgage, working with a mortgage broker offers distinct advantages over dealing directly with a bank. They provide access to multiple lenders, tailored solutions, expert guidance, and personalized service. Their expertise, negotiation skills, and ongoing support make them an invaluable asset in your journey towards homeownership. So, why settle for ordinary when you can have extraordinary? Embrace the power of the mortgage broker and unlock the key to a seamless and successful mortgage experience.