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An alternative lender says yes faster than a bank and charges more. What to plan for a file in Grand Montréal, and the way back to a bank rate.
A decline is an internal policy decision. It isn’t a verdict on you. Get the exact reason, because an exceeded ratio, a miscalculated income and an ineligible property each lead to a different next step. Without the reason, shopping elsewhere means starting over blind.
The decline reason in writing, if you can get it, and the file as it was submitted. Add your notices of assessment, income proof and down payment proof. Find out how many credit checks were already run too. Piling them up eventually hurts the file.
Your offer is only as good as the appraisal. Where few comparable sales exist in Grand Montréal, the appraiser can come in under the price you agreed to, and you cover the difference in cash. It does not get added to the mortgage.
The lender wants to see enough to work out your monthly budget: proof of income, the source of the down payment, your debts and what is left after the bills. Have them ready before the first call about a Grand Montréal file.
Rate is the easy comparison. On a purchase, two offers differ mostly in the penalty to break the term, in how much you can prepay each year and in whether the mortgage moves with you to the next home.
A complete file the first time avoids the back-and-forth that adds weeks. It is almost never the analysis that drags on a Grand Montréal file. Somebody is waiting on an employer, a bank or an appraiser.
To prepare
Yes. It all runs by phone, email or video call, and documents go through online. We can meet in person, but most files get settled without anyone having to travel.
No. Each lender has its own policies, and a decline does not show up on your credit report. Do ask for the exact reason, though: without it, comparing elsewhere means starting over blind.
Pick the situation closest to yours.
Contact
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.