GET YOUR DEAL
APPROVED
Private lending tips for mortgage brokers
BY CHRISTINE PERKINS
26
| spring 2019 cmba-achc.ca CMB MAGAZINE
privatelending
to solidify a relationship with your lender. Do
you know the zoning? Have you researched
the property value by looking up the address
with the provincial assessment authority, or
on Purview, or do you have an appraisal? If
the client is purchasing the property, do you
know the closing date? e pricing for a rush
closing is oen very different than a file with
a longer closing date. If it is a refinance, do
you know the details of the current mort-
gage(s) on the property (amount, maturity
date, default status, bank or private lender)?
What is the purpose for the funds? By what
date does the client need to close? e more
information you can provide, the more
quickly and accurately your private lender
will be able to provide a quotation.
n
KNOW YOUR CLIENT
Just because your client lives in Canada and
is a Canadian citizen or resident does not
mean they earn income in Canada. You need
Randomly sending files to multiple lenders
is not an efficient use of your time or your
lender's. Sending a file to a private lender
and not disclosing you are still waiting to
hear back from an A or Alt A lender may
also damage a relationship with your private
lender. Private lenders work quickly and can
usually provide an answer on a file within
24 hours; if it's a private lender you
have worked with, an answer can oen be
provided within a few hours or less.
n
KNOW THE PROPERTY BEFORE
YOU CALL YOUR LENDER
Before you pick up the phone to call your
private lender, make sure you know as
much as you can about the property.
What is the exact address? is sounds
basic, but quite oen mortgage brokers
haven't been provided with the address and
are "testing the waters" on a possible file.
Being organized and professional helps
M
ore residential borrowers
will require alternative
lending options as the
regulations established by
the Office of the Superin-
tendent of Financial Institutions' guideline
B-20 become fully actualized this year. For
private lenders, the demand for funds will
be high. As a broker, there are several things
that you can do to ensure that you get top
priority when working with your private
lender to get your deal approved.
n
KNOW YOUR LENDER
Take the time to know the lending guidelines
of the private lenders you want to work with.
Every private lender has a different comfort
level regarding the type of properties they
will finance (i.e. house or condo), location,
the borrower's residency, debt servicing
capacity, mortgage size and the risk they will
entertain regarding the loan-to-value ratio.
