Why Do Lenders Ask For so Much Paper for Approvals?

This is a question we get all the time and I have to say we even ask that ourselves.  Why so much paper is needed for mortgage approvals now? The answer is, there are more than one answers to that question so we will list the ones that make the most sense. Fraud – mortgage fraud including identity theft, documentation hampering, untruths all contribute for the need to supply proof that what you say and do is what you said and did.  Lenders have no other way of knowing unless they see the proof and for now and the foreseeable future this is the way things are going…

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Why Do Lenders Require You Have A Credit Rating

As a Mortgage Broker for many, many years this is a question I get a lot.  In an environment that consistently reports we as Canadians are way too far in debt compared to the income we make this question has it’s justification for sure.  And the main reason is that lenders require we have debt to get debt, makes no sense right?  I do agree to a degree so let me try to explain. The general rule of thumb is lenders want to see you have a minimum of two creditor debts over a two year time frame.  Add to that they want your credit card to have…

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