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Today's Money Talk

Consolidation mortgages are a struggle now in Canada and the US.

Thinking of refinancing? Think again.  Interest rates maybe low and be stable but that is not making it any easier to get money to buy a home or refinance a home.

It is entirely possible that in efforts to reduce risk the lenders, banks, brokers, finance companies have gone a bit to far on mortgage and credit conditions.  Qualifying for a mortgage, has become an exhausting endeavor for consumers.  The pre- qualification process is only one step in a multi step process that mirrors a character inquisition.

Real agents agree that the process has become so extensive, no longer in Canada is a 5 day condition adequate for financing approval, even for the most simple of transactions it is taking 10 -15 days.

Mortgage brokers, the ones on top of the situation are prepping their applicants, be prepared to validate everything on the application as well as items not on the application.   “Divorced 10 years ago, thought you had moved on.. well better dig out that divorce agreement to prove you are not liable paying support”.   Mortgage lenders and mortgage insurance companies, Genworth, CMHC etc, they are going to dig under every financial rock to determine the real picture.

Self -Employeed, 2nd Homes, Investment Properties… Good Luck.  CMHC this year all but eliminated  consumers from getting mortgage insurance in these situations.   Read more about how to CMHC Insurance Qualifications

Although the success of our Canadian mortgage financing rules carried us through the 2008 housing crisis and market crash our rules have subsequently been tightened an additional 3 times since 2009.  Each time making it more difficult to secure financing.

In the US, their rules in 2008 were all but non-existent.  Their mortgage financing rules had a steep adjustment curve to correct a weak and flawed system.  In that short time, the pendulum may have swung just a bit too far and over corrected the system.   That correction on processing and qualifying conditions has gone right to the top.   Former Chairman of the US Federal Reserve, Ben Bernanke and his 6 figure income was recently had refinancing rejected when he tried to refinance him home in Washington DC.

If you need to refinance your home or have been turned down for a consolidation mortgage, to pay down debt, Take the time to have a chat with a local trustee.  There is no charge, perhaps a consumer proposal would be a solution ideal to allow you to reduce your debt, avoid refinancing and keep your home and other assets.  Look at all your options before refinancing. Talk to a consolidation expert