This is a phrase we often hear, from individuals getting a mortgage.hello-1546041_1280

The world of mortgage lending has changed over the last 30 years. Gone are the days when you could go into your local bank, shake the manager’s hand and have a mortgage!

Lenders are required to do an increased amount of due diligence before issuing a mortgage. They are required to collect documentation supporting an applicants full and complete financial picture. Less than 10 years ago approvals only needed a pay stub, and maybe a letter of employment. Now, for example, lenders will call employers to do verbal verifications and also request to have the Notice of Assessment on file to ensure that the applicant doesn’t owe money to the Canada Revenue Agency. Due to the rapid increase of home prices, many institutions now request appraisals to be completed, to ensure that the property value represented is correct.

Lender’s new rules are a response to tightening of regulations; it is a sign of the times and the changing financial world we live in.

The more information you can provide from the beginning, the quicker the process and the greater the chance everything will go smoothly.

We trust and love our clients; we still like to give handshakes here at Champion Mortgage, but we have to work within the guidelines of the lenders as well.

If you have any questions about the different types of documents you will need to provide when doing a mortgage application – give us a call as we are happy to help!