Real Estate

Can I apply mortgage at more than 1 bank as closing is coming near?

  • Last Updated:
  • May 21st, 2020 1:06 pm
[OP]
Newbie
Nov 4, 2018
16 posts
1 upvote

Can I apply mortgage at more than 1 bank as closing is coming near?

I'm on a time limit. I have about 4-5 days to get a mortgage commitment letter so I can show it to the seller. I applied for a mortgage at one bank. But the bank broker is not confident if my mortgage will be approved.

Should I apply at two more banks at the same time?
9 replies
Member
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Jan 7, 2019
283 posts
258 upvotes
Yes.
Remember to always Thumbs Up good responses! Spread positively.
Deal Addict
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Jan 16, 2011
3930 posts
3469 upvotes
The NORTH
When I applied for my first mortgage 10+ years ago I went to TD and they flat out said no, not a reason given just a "you don't qualify". Luckily my sister worked at CIBC at the time and set me up with a mobile mortgage specialist who checked everything and said there was no problem. The rate was a little higher than TD at the time so I went back to TD and all of a sudden they had no issue with me getting a mortgage.

TL;DR - yes you can apply at multiple lenders.
Newbie
Jan 25, 2020
1 posts
2 upvotes
You should goto a mortgage specialist, they act as broker and can check with multiple banks at same time on your behalf.

I was in a similar situation few years back, that time I had just 2 days, so dont worry you can still do it

Disclaimer: my wife is a mortgage specialist , but I am not trying to sell you anything just pointing in right direction.
[OP]
Newbie
Nov 4, 2018
16 posts
1 upvote
My realtor just told me that I would get refused bcoz Banks see that I am applying multiple places. Is that the case?
Deal Guru
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Mar 23, 2008
10653 posts
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Edmonton
rick05 wrote: My realtor just told me that I would get refused bcoz Banks see that I am applying multiple places. Is that the case?
What other options do you have? Your bank agent doesn't seem positive they'll give you a mortgage (for whatever reason), so if you want to buy the house, you need to explore other options. I'd pursue those options with a mortgage broker, which will mean one credit pull and they can try to find a lender to work with you.

Did your bank agent say why they didn't feel confident about your application?

And yes, when a lender pulls your credit, they'll see you applied at other places. Whether that influences their decision is another story.

C
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Feb 2, 2014
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Toronto
rick05 wrote: My realtor just told me that I would get refused bcoz Banks see that I am applying multiple places. Is that the case?
Not at all.

Did the real estate agent refer your current broker?
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Feb 15, 2018
278 posts
354 upvotes
rick05 wrote: My realtor just told me that I would get refused bcoz Banks see that I am applying multiple places. Is that the case?
Your realtor is full of you know what. Anyway, it is normal and expected that when people apply for mortgages or car loans they shop around for the best rate and terms. That is why credit reporting bureaus actually lump all mortgage applications within a 2 week period into just one enquiry so that it does not hurt your credit score.

As for the shopping around. My advice to you is to go with a mortgage broker vs approaching individual banks. Brokers also have access to non traditional banks like monoline lenders, which would never deal with you as an individual. I have found monoline lenders to always have better rates than the traditional big 5 banks.
Deal Fanatic
Jul 30, 2003
5619 posts
443 upvotes
Toronto
rick05 wrote: My realtor just told me that I would get refused bcoz Banks see that I am applying multiple places. Is that the case?
I can tell you - this EXACTLY happened to someone in the family:

They went to TD. We were expecting an answer in 5 Days. After 7 business days we didn't had an answer so applied to another big bank.
In initial consultation, they asked point blank: TD did a pull on you credit, you applied for the mortgage. Why were you denied?

At this point, you can't convince them that you were NOT denied. The application was still submitted to new bank but it was quickly denied from the "back-office".
Fortunately, TD came through and gave an amazing rate as well (I did used some inside connections).

Whoever advised you go to a broker - take their advice.
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May 15, 2019
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rick05 wrote: I'm on a time limit. I have about 4-5 days to get a mortgage commitment letter so I can show it to the seller. I applied for a mortgage at one bank. But the bank broker is not confident if my mortgage will be approved.

Should I apply at two more banks at the same time?
Happened with me a month ago- RBC kept me on the edge till the Nth hour (Day 5) and on Day 4, I got in touch with National Bank who promised me a quick turnaround. I got an approval from National Bank in less than 2-3 hours, and was sceptical as it couldn’t be underwritten that quick. RBC’s approval is what I went for.

Mortgage lenders know you would shop around and will cut you some slack on this- so nothing to worry about. Please go ahead and do your due diligence- please bear in mind that not all brokers have access to all the Big 5(like RBC/TD etc.). So please bake that into your consideration when shopping.

Scotiabank’s eHome proved to be a disaster for me as they pulled my credit and said they’d defer me to their normal mortgage as my application wasn’t straightforward- I had a 2.19% rate with them.

I finally went with RBC for this mortgage.

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