MORTGAGE BROKER SHOPS AND SHOPS AND SHOPS FOR MORTGAGE — AND FINDS BEST DEAL

When I first got into the mortgage business eight years ago, my mentors talked a lot about funding ratios, the number of mortgages you close with a lender compared to the number of applications you send that same lender. “Don’t apply to more than one lender for a mortgage” they told me, “lenders keep track of the number applications you send them, and if you don't close enough of them, they will cut you off!”

That sounded scary so I was sparse with the number of applications I sent out. Recently I have become much bolder, sending out just as many applications I feel is necessary to get the job done. The other day I signed up a client for a mortgage—I had to apply to five different lenders to get them this mortgage!

The mortgage was for a self-employed couple who were not able to prove income. They had just 15% down and to make matters worse, the husband did not have his permanent Canadian status. The first two lenders I applied to declined for one reason or another. Though I felt strongly that the application would eventually be approved by an “A” lender, I sent it to a “B” lender next, so the borrowers could at least sleep at night knowing they had a mortgage they could live with in a worst case. The B lender approved the deal but at a higher rate. I continued to shop and eventually found the applicants a mortgage at 2.25%, which by today`s standards is a very good rate!


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THE TEN COMMANDMENTS OF MORTGAGE LENDING

When it comes to getting advice on something as important as your mortgage, are you getting the service you deserve?

I've come up with a list of commandments or 'rules of engagement' - how I think a mortgage broker or agent should engage his/her customers. Check them out below...

• Thou shalt not charge exhorbitant fees
• Thou shalt not push a borrower into a mortgage they cannot afford
• Thou shalt not arrange a mortgage for a borrower who doesn't understand the risks of the mortgage ie. variable vs. fixed
• Thou shalt not arrange a mortgage at a higher rate of interest than is necessary in order to earn a bigger finder's fee
• Thou shalt not arrange a mortgage for a borrower on a longer term than is desired by the borrower in order to earn additional finder's fees

• Thou shall always return calls promptly
• Thou shall keep clients up to date with the status of their application
• Thou shall give borrowers honest feedback about their application up front, whether it is strong or weak
• Thou shall respect the privacy of borrowers
• Thou shall put the financial well being being of borrowers above all else and treat borrowers as you yourself would want to be treated

If you need my help with your mortgage, give me a call!

I look forward to hearing from you!

Sincerely,

David Grossman
The Mortgage Mensch
Tel: 416 876 2031
Website: www.mortgagemensch.ca