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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By Tracy Head August 27, 2025
Does an early renewal make sense? 2020 was a very busy year for home buying and mortgages. This means that 2025 is and has been a busy year for mortgage renewals as the majority of clients seemed to choose five year terms in 2020. I’ve had lots of conversations with my own and new clients about whether it makes sense to renew early. Each conversation is slightly different based on client needs and their individual circumstances. Most of the time I suggest that clients stay with their current lenders until their renewal dates because their current interest rates are anywhere between 1.6 per cent and 2.79 per cent. If you don’t need to make any immediate changes it makes the most financial sense to stay put until your term runs out. We can start the process of either switching or refinancing mortgages four months ahead of your renewal date and lock in a rate for you. As a generalization, when people ask about doing a straight switch (not adding any money to their mortgage) I will do a survey of what interest rates are available so they can go back to their lender to try to negotiate a great rate. Time and time again I’ve worked with clients on switches for them to cancel at the last minute as their current lender finally sharpens the pencil rather than lose the client. This is why I always try to help people negotiate with their current lender rather than put everyone through the work of having a new mortgage approved. If clients are wanting to add money to their mortgage to pay out consumer debt or pay for home renovations that changes things a bit. Some lenders are more aggressive with their refinance rates so it makes sense to make a move. Another situation has popped up this week that has had me crunching numbers for multiple clients. One of my favorite lenders came out with a quick-close rate special that is pretty hard to pass up. The fine print is that the new mortgage has to finalize within thirty days. I have been working on a refinance at renewal for clients that is set to close at the beginning of November. I took a look at how their current lender calculates the payout penalty when they are this close to renewal. It turns out they charge daily interest instead of a three-month interest penalty or interest rate differential. So I did the math. If we pay out early to take advantage of this great interest rate their payout penalty is around the $1000 mark. Over the term of the new mortgage they will save approximately $5500 in interest cost and their monthly payment will be about $85 per month less. Even after they pay out the penalty to move a bit early they will still be $4500 ahead over the term of their mortgage. This is one of the few times I’ve recommended that it makes sense to move forward ahead of the renewal date.  If you have a renewal coming up over the next few months I’d say it’s a good idea to connect with your mortgage person to look at what rates are available now and figure out whether it makes sense to consider making a move sooner rather than later. Lenders will pop up with rate specials from time to time so it is worth having your mortgage professional keep an eye open for you as your renewal date comes closer. It may just save you a significant amount of money.
By Tracy Head August 11, 2025
Last week was a vivid reminder of the importance of finalizing your home insurance as soon as you are within thirty days of your closing date on a home purchase. I had three clients with purchases closing on the Friday after the fire broke out in Peachland. All three had to push their closing dates back because they couldn’t get their insurance in place due to an active fire. Thinking about this led me to consider a few of the key steps involved when purchasing a home. I’ve written about this in prior columns but I feel a reminder is never a bad idea. There are a few areas of crossover between the guidance your realtor gives you and the advice you receive from your mortgage person. When your realtor writes your purchase contract there are some standard conditions that are added to the agreement. You will generally see the following: Subject to the purchaser obtaining satisfactory mortgage financing Subject to the purchaser having a home inspection conducted Subject to the purchaser arranging home insurance Subject to review of strata documents if applicable Subject to the sale of the purchasers’ current home if applicable The financing end is obviously our responsibility. I do double-check with my clients that they have taken care of the other conditions. Most realtors are great at offering support to their clients with respect to addressing the relevant conditions. In some cases I feel like realtors tell clients the steps they need to take but my guess is that the whole process can feel or become overwhelming. Before I give my clients the ok to remove their financing subject I confirm that they have taken care of the home insurance as this is one piece they sometimes miss.  If you are going through the process of purchasing a home my suggestion is keep a notebook (aging myself by suggesting a paper version) or a list on your phone to keep track of your must-do tasks as you go through the process. I have a checklist that I’m happy to share if you would like a copy.