Real Estate

Bank Mortgage Specialist caused delay

  • Last Updated:
  • Jul 2nd, 2021 5:47 am
Feb 15, 2018
448 posts

Bank Mortgage Specialist caused delay

Here is the scenario:

Buyer applied for a draw mortgage for a new build through a bank via the bank's mobile mortgage specialist.
Bank approved the mortgage with a 6 month rate guarantee on condition that the first draw is done by the builder at the 4 month mark - otherwise the buyer looses the interest rate guarantee.

Earlier on, the mobile mortgage specialist had asked the buyer whether they would be going with the builder's lawyer and the buyer made it clear in an email that they have their own lawyer and even offered to forward the lawyer's details to the mortgage specialist. The mortgage specialist advised them that there was no need to forward the info at that time and he will ask for it when the time comes.

When the 4 month mark came, the mortgage specialist sent the first draw paperwork to the builder's lawyers without even notifying the buyer. Next thing, the buyer is getting a call from the builder's lawyer right on the deadline date asking them to come in and sign off on the mortgage draw paperwork. Since this is right on the deadline date, there is no way the bank can forward the paperwork to the buyer's lawyer and have them work on the file prior to the deadline.

If the buyer misses the deadline and are now subject to a higher interest rate, would complaining to the bank that their own agent caused the delay by sending the paperwork to the wrong lawyers result in the bank honouring the original lower interest rate they would have received had the documents been signed by the deadline.
Edmonton area Realtor