When Kelly separated from her ex-husband over a year ago, Discount Mortgage Canada (DMC) offered her a mortgage from their personal investment funds as a bridge to enable Kelly to buy a home for herself and her children. At the time, Kelly was not eligible for a loan from a traditional lender because her separation agreement was not finalized. Even though DMC knew she was unemployed, they loaned Kelly the funds to purchase her current home based on their existing relationship with her as a client, but also on the basis of their business relationship with Kelly’s ex-husband, their knowledge of her ex-husband’s ability to support her and their absolute trust based on experience that Kelly’s ex-husband would do so. DMC’s relationships with their clients are therefore such that they can make judgments of this importance and magnitude with absolute confidence.
They had a profound and lasting positive impact on the lives of my children and me that I will never, ever forget.Kelly C.
Dave and Jenn were first time buyers and were pre-qualified by their bank. They were very excited and met a Realtor at an open house who they liked and agreed to work with to find a home. After a couple of weeks of viewing about two dozen properties, they found their dream home. The real estate market was hot and as a result, other people were also interested in buying the same home. Their Realtor informed them that they were in competition and there would be three offers coming in on the same property, emphasizing that if they were interested in this home they would have to make their best offer. They made an offer which was accepted as the winning bid and was $10,000 above the listed price, conditional upon being approved for financing. Dave and Jenn then met with their bank to firm up their financing, however they ran into a problem. The bank did a pre-qualification, not an actual pre-approval, and did not pull their credit until they had accepted the offer. At that point it was discovered that their debt service ratios were higher than the bank's guidelines and as a result they were declined by their bank. They were very disappointed as they really loved the home and they felt bad that everyone's time was wasted.
Before giving up, their Realtor suggested they meet with a mortgage broker to get a second opinion and he referred them to DMC. A DMC agent met with Dave and Jenn and confirmed that, yes, their ratios were a little higher than their bank would approve. However, it was discovered it was their bank's policy, but not CMHC's policy. DMC works with many different lenders and based on Dave and Jenn's great credit history, they were able to find a lender that would approve them for the mortgage and best of all they gave them a lower rate than what their bank had offered. This also allowed them to lower their debt service ratios and made it easier to qualify for the mortgage.
First time home buyers have a difficult time in knowing where to start when thinking of buying their first home. We have put together a simple 6-step process that you need to follow if you are a first time home buyer. However, before doing any of these you need to know what it takes to qualify for a mortgage. Simply click on our five minute video on qualifying for a mortgage and remove all the mystery.
We never realized that there were so many differences between what a bank could do and what a broker could do. If we were not not referred to DMC, we would have never known any different and would still be renting today. Thanks DMC for looking after us and getting us approved!Dave & Jenn