Sub-prime Mortgages in BC (Bank Turndowns)

Many of the clients we deal with here at Verico Mortgage were turned down by their bank prior to them coming to us; yet we were still able to assist them in getting into a new home. Here are some of the more common reasons why we are able to help when your bank can't:

1. All lenders (prime) have to use the same minimum criteria for qualifying their high ratio mortgages (CMHC/ Genworth/ Canada Guaranty policies); they do not however have to adopt the insurer's guidelines as their own. Many banks and mortgage companies feel the insurer's policies are not tough enough so they will create their own.
2. More often than not the loans officer at the branch does not have the experience or training to know how to package a complicated mortgage that the insurers would approve.
3. You may require a specialty mortgage program that your bank does not have, in these cases you need to work with a BC mortgage broker who knows about the program and where to find it.
4. If you are not getting the best mortgage rates in BC from your bank, this will affect the ratios on your deal. The lower the interest rate, the more you qualify for in terms of dollars (and house). Different banks can also adopt different qualifying ratios (some banks still use the old 32/40 while the insurers will except up to 44/44 now, this is a significant difference in how much you qualify for).
5. An experienced BC mortgage broker will know how to restructure a deal to get ratios in line.
6. BC mortgage brokers have access to other lending sources if your deal doesn't get approved by the insurers; non-conforming or sub-prime lenders don't insure their loans. They create their own rules and guidelines that allow them to do mortgages that the banks can't do.
7. If CMHC or Genworth declines your application, an inexperienced loans officer at the branch likely won't know that the deal can still be escalated to a manager at the insurer and exceptions can be made.
8. A BC mortgage broker only gets paid if they get you a mortgage; in other words we care. We will work the deal hard and try to restructure it in a way that satisfies the lender and the insurer.

If you have been turned down by your bank it does not mean you are out of options. Call one of our BC mortgage brokers today and let us evaluate your situation.

BC Mortgage Brokers