Real Estate

Mortgage brokers?

  • Last Updated:
  • Dec 20th, 2020 12:26 am
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[OP]
Banned
Apr 7, 2019
94 posts
18 upvotes

Mortgage brokers?

Hi guys...just wondering how mortgage brokers work. Right now waiting for my broker to get me a mortgage done. He is applying to one bank. Do they just apply one by one until they get approved. Doing this way how long does each application process take to get approved or declined. I have 1 month till closing. Is it like every day they can apply place. So daily can get answer and keep going until approved somewhere.

I remember when first bought my original first home 2013 another borker had applied many places and only got the approval after 30days with radius financial. Then I was with nation bank. Now again broker is in process to apply for me again. He starting with A lender. I hope I am not gonna be waiting until close to closing. Would like to know how does their process work.
13 replies
Deal Guru
User avatar
Feb 2, 2014
10217 posts
2944 upvotes
Toronto
liquidsuite wrote: Hi guys...just wondering how mortgage brokers work. Right now waiting for my broker to get me a mortgage done. He is applying to one bank. Do they just apply one by one until they get approved. Doing this way how long does each application process take to get approved or declined. I have 1 month till closing. Is it like every day they can apply place. So daily can get answer and keep going until approved somewhere.

I remember when first bought my original first home 2013 another borker had applied many places and only got the approval after 30days with radius financial. Then I was with nation bank. Now again broker is in process to apply for me again. He starting with A lender. I hope I am not gonna be waiting until close to closing. Would like to know how does their process work.
He should have an approval within 3 business days.

He should only send your application to the best product out there....no need for multiple approvals, that's nonsense.

Best rates start at 1.79% 5-year fixed and 1.70% 5-year variable depending on details of the mortgage.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
Jan 15, 2017
5140 posts
5095 upvotes
Ottawa
^^ I agree. He should only be submitting the deal to one lender that is offering the best mortgage for your needs. He should also know for certain that he will obtain an approval prior to submitting the application. If he is a little bit doubtful, he should reach out to the Business Development Manager for the lender to discuss the details and concerns prior to submitting.
Newbie
Jul 22, 2020
2 posts
Is bad form for someone who has a big 5 mortgage to consult a mortgage broker then end up renewing with their big 5 bank or is it just part of the 'game'?
[OP]
Banned
Apr 7, 2019
94 posts
18 upvotes
I hope get approval asap. So stressful process selling and buying home. Now all hinges on my mortgage for next home. I have 34 days until closing date so hopefully my broker get approved early and I can relax until move day. After he gets an approval can I ask him to shop around incase better deals or not worth it. Is it better just go with what ever he gets approved first.
Deal Addict
User avatar
Jan 2, 2012
4347 posts
2450 upvotes
Toronto
liquidsuite wrote: I hope get approval asap. So stressful process selling and buying home. Now all hinges on my mortgage for next home. I have 34 days until closing date so hopefully my broker get approved early and I can relax until move day. After he gets an approval can I ask him to shop around incase better deals or not worth it. Is it better just go with what ever he gets approved first.
He should already have "shopped around" and chosen the best mortgage for you at the best rate, before submitting the application.
[OP]
Banned
Apr 7, 2019
94 posts
18 upvotes
I wondering lets say broker can not get with bank approval when they apply to B lenders is there more chance to get approved. Is B lenders higher rates or they can offer same as banks. I always see adverts non banks offering same good rates looks like right now.
Deal Addict
Jan 1, 2013
2032 posts
1300 upvotes
Durham
liquidsuite wrote: I wondering lets say broker can not get with bank approval when they apply to B lenders is there more chance to get approved. Is B lenders higher rates or they can offer same as banks. I always see adverts non banks offering same good rates looks like right now.
Every situation is different. If an A lender is not approving, you will have a higher rate at a B lender. B lender rates will depend on risk associated with your personal application.
Deal Addict
User avatar
Jan 2, 2012
4347 posts
2450 upvotes
Toronto
liquidsuite wrote: I wondering lets say broker can not get with bank approval when they apply to B lenders is there more chance to get approved. Is B lenders higher rates or they can offer same as banks. I always see adverts non banks offering same good rates looks like right now.
The banks are not the only A lenders out there. Many lenders outside the big banks are A lenders as well, and actually offer rates/terms much better than the banks.

"B lender" refers to lender that cater to those with bad credit or income problems, in which case you would always get a higher interest rate vs a traditional lender.

So again your broker should not just be looking at "bank approval" for a mortgage. There is zero advantage to go to a big bank for a mortgage, unless they happen to offer the best rates/terms for what you're looking for. Your broker should be checking rate of all lenders to pick what is best for you, and then applying to just the best one. It may not be a bank, and in fact many banks don't even allow to use outside brokers to get mortgage with them.
[OP]
Banned
Apr 7, 2019
94 posts
18 upvotes
So after delays with closing adjustment date my broker finally applied 2 days ago. Was told will find out something first week of august. Waiting game is the worse and the not knowing. My biggest fear is if he has to apply another bank how much time gets wasted. If each applications take a week to get answer back. My closing is end of august. Fingers crossed all will be done and can relax after.
Deal Addict
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Oct 24, 2016
1369 posts
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ON
Most experienced brokers should be able to tell you beforehand if your file will be approved with a particular lender. It seems like you have a borderline credit situation and even in that case the broker should be able to identify the lender where your file has a better chance of approval.
”If you buy things you don’t need, soon you will have to sell things you need.”
[OP]
Banned
Apr 7, 2019
94 posts
18 upvotes
So my broker said he submited deal on thursday and will take 1 week to hear back. I am stressed that we wait 1 week then if reject we have less time to get approved next place. I wish he could have just applied a few places same time so no waiting on just one application.
Jr. Member
Nov 2, 2017
190 posts
21 upvotes
liquidsuite wrote: So my broker said he submited deal on thursday and will take 1 week to hear back. I am stressed that we wait 1 week then if reject we have less time to get approved next place. I wish he could have just applied a few places same time so no waiting on just one application.
Hi Liquid,

Could you do us the courtesy of providing us with the outcome?

Were you approved?

Thank you.
[OP]
Banned
Apr 7, 2019
94 posts
18 upvotes
Hi guys sorry did not update. Yes got approved and all went through fine. Still was very stressful all thw waiting. It was mainly due to waiting for apprisal outcome. I was underpaying on a great deal for a detached home which was a deal due to covid effect. Thanks guys for all advice until the next stressful event which i am sure will be around the corner haha

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