Mortgage Conditions

Tracy Head • November 29, 2024

Time is of the essence.

Whether you are looking for a mortgage preapproval, have an accepted offer on a home, or are in the middle of a refinance, we are generally working towards meeting a deadline whether it is a financing subject removal date or an upcoming renewal date.

I feel like mortgage professionals all have their individual styles and processes as to how they work with their clients.


One of the things I’ve learned over the years is the importance of gathering my clients’ documents upfront and reviewing them thoroughly. There are times when a client calls with an accepted offer so we are starting a little behind with respect to document collection.


Another of the things I’ve learned over the years is that regardless of how thorough I try to be when collecting and submitting clients’ documents to lenders there are often additional requests for clarification that come from the lender.


Hands-down I feel like organizing and sending your paperwork to your mortgage person is the most frustrating part of the process for clients.


So what can you do to make this smoother?


First, if you receive a list of required documents please provide them all. Take a minute to confirm that your documents clearly show your name and account number if applicable. Send all pages of the documents; don’t guess at the pages you think the lender needs. 


There are reasons lenders need specific documents and information. They are doing their due diligence to do their best to avoid mortgage or identity fraud. They want to make sure you truly have the capacity to make your mortgage payments.


Most days I spend time explaining to my clients why we need particular information and documents and help them access and submit them. If paperwork is not your forte I completely understand the frustration as you do your best to send your information.


Even if paperwork is your forte I get your frustration.


Why is there such a high level of due diligence on our parts?


I recently had a chat with a friend that works at a TD branch. Because of the three billion dollar fine that TD was handed in the US their mortgage rates are suddenly a wee bit higher and they don’t have the same wiggle room they did earlier in the year.

This is also due to the mortgage interest rate environment overall. However, when huge fines like this cut into profitability the loss has to be covered from somewhere.


Thorough document review and multiple ways to verify information feel like a pain but if these steps help identify potential money laundering or fraud this will save us all as consumers from higher interest rates and even stricter lending guidelines. 

It's important to understand when you feel like the paperwork is driving you crazy. If you are having troubles finding the necessary paperwork, pick up the phone and speak to your mortgage professional. There may be alternate ways to access or confirm the same information. 


The more organized you can be with your paperwork, the smoother your mortgage approval will be.

Tracy Head

Mortgage Broker

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Rate Wars

By Tracy Head • March 24, 2025
Annnnnnnd …. Its on!  Spring has arrived and with it comes a significant drop in mortgage interest rates. Over the last few months when I’ve chatted with clients who are renewing or planning to buy in the spring market I have said in almost every conversation that by mid-March rate wars tend to start. Regardless of what is happening in the interest rate environment as a whole it seems by the third week of March lenders start sharpening their pencils. Over the last two weeks we started to see lender bulletins trickle in advertising quick- close rate specials (ie: for mortgages finalizing within 60 days) and rate drops across the board. Today I have had updates from six different lenders and its only noon. Why is this important to you? Not all lenders have the same policies with respect to dropping their rates once your mortgage has been approved. When you go into a holding pattern after your mortgage has been approved but before it has finalized rates can change. If they go up, you are covered by the rate you have in place. If they go down, how does your lender deal with your file? Some lenders won’t drop your rate. Some lenders will drop it once. Some maybe twice. There are a few lenders that will drop your rate an unlimited number of times up to a few days before your mortgage finalizes. When I am choosing a lender for my clients this is absolutely one of the most important things I consider. All things being equal, if I can place a mortgage with a lender that offers unlimited rate float downs I will. I watch my calendar of upcoming closings and proactively reach out to those lenders to request better rates for my clients. It’s a win to be able to get the benefit of falling interest rates without having to change lenders. If you are buying a home, renewing your mortgage, or looking to refinance this is a key question you should ask your mortgage person. Find out whether they will adjust the rate on your mortgage and what the process is (do you have to request this?). At the same time, find out how many times they are able to reduce the rate for you. Regardless of the answer I suggest touching base with your mortgage person or lender periodically up to the time your finalize your mortgage to confirm you are receiving the lowest rate they have available for you.

Buying a Strata Property

By Tracy Head • March 6, 2025
Read the Fine Print After a few recent escapades with condo purchases I think I’d like to talk a bit about doing your homework when purchasing a strata property. Strata properties can offer the convenience of shared maintenance costs, security, benefits like pools and workout rooms, and in some cases a more attractive price point. For people with busy schedules that don’t have the desire to spend time on yard work (or shoveling!) strata properties can be a great fit. Strata properties are usually managed by strata councils. There are legal requirements with respect to meetings, finances and insurance, record keeping, maintenance and upkeep, as well as bylaws and rules. Not all strata properties are created equal. People don’t realize the importance of taking the time to read through the strata documents when they are considering buying a strata property. From a financing perspective there are several pieces that lenders look for. Lenders and insurers (CMHC, Genworth, Canada Guaranty) will read through strata documents, particularly meeting minutes, financials, and depreciation reports. They are looking to see if the building(s) have been well maintained, and if there are adequate funds in the strata’s contingency reserve fund (CRF) to cover any upcoming projects or unexpected issues. They will look to see if the strata has planned and budgeted for ongoing maintenance and updates to ensure the buildings stay in marketable condition. Lenders look to see if there is a rental pool or if there are rental restrictions. They are looking to see if there are any age restrictions. So how does this affect you as a potential buyer? If buildings have not been properly maintained or have had significant structural issues, they are sometimes flagged by mortgage default insurers. This means that those insurers won’t cover new mortgages for people trying to build into the complexes until those issues have been rectified or remediated. If the building has been flagged, it can mean that you are unable to find mortgage financing to purchase a unit in that building. This can also mean increased strata fees to cover big repairs. This may also lead to special assessments. Special assessments are used by stratas to raise significant funds relatively quickly to deal with major expenses. Over the last year I’ve talked to clients that have had to deal with special assessments of $23,000 and $10,000 respectively. Neither of these clients were in the position to come up with the cash, so they are both on payment plans. In both situations this additional monthly payment has created financial distress. Increased strata fees and special assessments can happen in any strata complex, but if you are looking at purchasing a unit in a complex that has ongoing issues or minimal funds in the contingency reserve fund you need to think about what that may look like down the road for your finances. Having said that, just because a building has had issues in the past does not mean you should cross it off your list of potential purchases. Do your homework. Check to see if the strata has dealt with any outstanding issues, and if they have documentation to confirm that. We were recently able to obtain approval in a complex that the insurers had flagged. For over two years the building had been flagged due to maintenance issues. In this case any units that sold were sold to cash buyers as lenders wouldn’t touch the complex. Major work was done and an engineer’s report was ordered to confirm the damage had been dealt with. Both the lender and the insurer went through all of the documents and approved the financing because all issues had been dealt with and the strata has taken steps to rebuild their contingency fund and ensure necessary maintenance is planned for in the future. This felt a bit cautionary. The intent of this information is not to scare you off of purchasing a specific property, but rather to encourage you to do your homework and learn about the strata you are buying into. Your realtor will be able to help you find answers to your questions, and it is important to have your lawyer or notary review the strata documents before you move forward with your purchase. The spring market feels to be picking up. If you are looking to get into the housing market, a strata property might be the ideal fit!
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