LowestRates.ca<\/a> . \u201cLenders are short staffed and often can\u2019t submit applications fast enough to keep up with demand. Given this environment, why would lenders incentivize homebuyers to increase lending?\u201d<\/p>\nCanWise Financial recently rolled out a 98 basis variable rate mortgage that\u2019s being made available to homebuyers who have less than 20% for their down payments. It also includes a 120-day rate hold, a 20% prepayment option, three months of interest as the penalty for breaking the mortgage, and it\u2019s both portable and assumable.<\/p>\n
Citing the deal, Zlatkin suspects there will be few, if any, similar rollouts.<\/p>\n
In fact, some lenders have even raised rates to alleviate pressure on their mortgage underwriters, says Daniel Johanis, principal broker at Pekoe Mortgage.<\/p>\n
\u201cWe\u2019ve noticed that underwriters are human and only have so many hours in a day,\u201d he said. \u201cSome close friends of mine are underwriters for banks and I sympathize, for sure. One thing we\u2019ve been doing is communicating with our clients on new expectations, as far as turnaround times, whether for purchases or refinances. Purchases take more precedence because there\u2019s usually a hard deadline, while refinances are more flexible. We see underwriters straining to keep up with the volume.<\/p>\n
\u201cEquitable Bank, for example, raised its rates in June because of its backlog of files.\u201d<\/p>\n
However, good mortgage brokers usually have strong relationships with underwriters, and that could help get a file funded faster, but\u2014of course\u2014there\u2019s no guarantee that will happen anymore. Johanis says that typically there would be a 24-hour turnaround just for a file review, however, in most cases it now takes weeks to hear back from underwriters.<\/p>\n
\u201cIt\u2019s definitely out of the ordinary and not what we\u2019re used to, and I\u2019m hearing the same thing at the branch level with pretty high turnaround times just to get an answer, not funding,\u201d he said. \u201cIf you look at Meridian Credit Union, they were halting applications for refinances recently because their turnaround time was something crazy like 16 weeks.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Mortgage underwriters are so busy that it is unlikely rates will drop again before their anticipated increase in 2022, says a Toronto-based broker. \u201cConsumers need to remember that what lenders discount off of the prime rate is up to the lender. Lenders tend to use lower rates to drive borrowing and the last few months […]<\/p>\n","protected":false},"author":6,"featured_media":27428,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9236"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=9236"}],"version-history":[{"count":3,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9236\/revisions"}],"predecessor-version":[{"id":23799,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/9236\/revisions\/23799"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/27428"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=9236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=9236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=9236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}