Read your mortgage paperwork.

Tracy Head • May 3, 2024

Sharing this situation as a reminder of the importance of reading the fine print. I have been working on a refinance at renewal for clients in northern BC. They had tried to sell their home but their acreage is unique so they did not have any offers. Their home sat on the market for over a year and their mortgage was coming up for renewal.


In the meantime life happened. They were at limit on multiple credit cards and credit limits and were stretched pretty thin. Work slowed for a bit so his income was down and they had a new baby so she was on maternity leave.


They did have a significant amount of equity in their home so the plan was made to consolidate

their debt to improve cash flow for the short term.


We got an approval with a great rate. So far, so good.


The approval stipulated that most of their credit cards and lines of credit would be closed. I had submitted the application specifying which ones were to be left open and which were to be closed. When the mortgage commitment came from the lender I double-checked the list and all was in order.


The lender pulled the clients’ credit reports about two weeks before closing and came back with a few changes because they were now over limit on two more cards. The clients went to the lawyers and learned that the new lender wanted an additional credit card closed. This particular card was one they used for rewards points so they were not willing to close that specific card.


They discovered this change when they were signing with the lawyer two days prior to their scheduled closing date. I became aware of this the morning their mortgage should have finalized. Their lawyer had told them it wasn’t an issue and that she would sort it out, but the lender was unwilling to compromise on this.


The clients called me and were very frustrated. After several calls back and forth with the lender and the client we were able to reconfigure their file a bit so that card stayed open and another credit line was closed.


So where does reading your mortgage paperwork come in?


Most people thing that once they sign their original documents from their mortgage person that their financing is set in stone. In point of fact, there is always fine print that includes something to say that any material change to the clients’ financial situation may cause their financing to be altered or cancelled.


A wise broker I know shared a list of Ten Mortgage Commandments with me in my early days. It laid out ten things you should never do between the time your mortgage is approved and the time it finalizes. It included things like you should not change jobs, buy a new vehicle, co-sign for any loans, spend your down payment, go over limit on your credit cards, etc.


At the time I remember thinking to myself that the list was so condescending that I would never share it with clients. After many years and interesting scenarios as a broker I go over this list with almost every client. If you think no one would do those things I can assure you I’ve seen it happen. In this situation we were able to sort things out and their mortgage funded the next day.

If you run into something similar at the last minute, loop your mortgage person in. They will likely have no idea that things are happening behind the scenes and they are in the best position to help you navigate through it. Our goal is to help you have a smooth experience so we are here all the way through the process.


Part of my practice is to connect with my clients’ legal representatives so that they have my contact information in case anything like this pops up last minute. Clients often don’t know that they can reach out for help, and the lawyers may not think to ask.

Should something like this happen to you at closing time, take a deep breath and reach out to your mortgage person. It may be very simple to solve when the right people are helping.

Tracy Head

Mortgage Broker

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By Tracy Head May 19, 2025
I know this is a dumb question but ….  I should probably know this already …. I’m sorry to ask so many questions but …. So many times clients start out with one of these statements. They feel like they should have a better understanding of the mortgage process or terminology. The truth is that buying a home is not a simple journey. Applying for a mortgage is not a cake walk. And even if you’ve been through the process in the past the goal posts seem to move faster than you can keep up. One of the reasons I love (most days) my work is that I am able to spend as much time as I need with my clients helping them understand their financing. When I worked for one of the chartered banks in a previous life I was so tightly scheduled that when our time was up that was it. Someone else had an appointment that I needed to be on time for. Clients have different learning and communication styles. Some come well-versed and understand the mortgage process; others have not done any research and need a lot of hand-holding. My goal is to make sure that by the time they are signing their legal paperwork in front of their lawyer my clients understand the decisions they have made and the rationale behind them. Whether it is the first time you are buying a home or you are looking to refinance your current mortgage it is important that you find a professional to work with that is patient and non-judgmental. In a beautiful world you connect with someone that has bought and sold a few of their own homes and has been working in the mortgage world for a while. It can feel very intimidating to bare your soul to a complete stranger. We often don’t share details of our finances with anyone except our banker / spouse and in some cases I find clients may feel embarrassed about the state of their finances. We see via social media others living lavish lifestyles and somehow feel we should be doing the same. The bottom line is that whether this is your first plunge into the homeownership pool or you are a veteran in the market, it is so important to connect with someone that takes the time to understand your situation and your goals. Knowing your long-term plan and how you handle your finances can help your mortgage professional set you up for success. Please please please make sure you ask all of the questions, even if you think you should know that answers. Guessing that you understand something or bluffing without listening to your mortgage professional’s advice can cause unnecessary grief down the road.
By Tracy Head May 5, 2025
When I work with clients that say they are writing an offer on a private sale I always talk about the benefits of working with a realtor. Realtors do so much legwork that happens behind the scenes that clients aren’t even aware of. Most times it is challenging on my end when clients try to tackle the process of writing an offer on a private sale themselves. I joke and say I am going to charge them an extra fee because of the additional work it creates on our end. I don’t actually charge a fee to be clear but I am only half kidding. When you start down the road of buying a home there are many new and unfamiliar terms you may hear. Whether you are working with a realtor or not, arguably some of the most important things you need to learn about are the “subject to” conditions to include in your offer to purchase. When you write an offer to purchase a home, your realtor will offer guidance as to the conditions you include. Common conditions you will see are:  Subject to arranging suitable financing  Subject to a satisfactory home inspection  Subject to arranging home insurance  Subject to review of strata documents  Subject to the sale of your current home If you are purchasing a rural property or are in a unique situation you may also see:  Subject to a water potability test  Subject to an inspection of the septic system  Subject to the seller finding a suitable home to purchase These lists are not all-encompassing by any means. The purpose of adding conditions to your offer is to protect you in case there are any issues with the home you are looking to purchase. In previous columns I’ve written about the potential dangers of writing a subject-free offer. The high- level, quick position is that if you write a subject-free offer you’d better have cash on hand to buy the home. I have worked with several clients over the last few months that have written private offers. We do absolutely everything ahead of time to try to ensure they will be successful with their financing. These files stress clients more than you can imagine. They have to either find templates to fill out or pay a lawyer or notary to prepare the documents for them. Either way they need to quickly learn about the conditions I listed above and understand key dates involved in the buying process. The clients need to deal directly with the sellers on any issues that may arise. When you are working with a realtor they handle these issues on your behalf. A knowledgeable realtor also helps avoid issues by taking any of the personal contact and emotions out of any potential areas of conflict. Make sure you do your due diligence and have your ducks in a row as you move forward with an offer to purchase whether writing an offer with a realtor or on your own. Now that the sun has come out and the election is over I’ve seen my clients more actively shopping which is encouraging. As always, my advice is to work with a realtor that you are comfortable with and who knows your area well.