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Mortgage approval for RTO clients

Sherilynn

Real Estate Maven
REIN Member
Joined
Oct 22, 2007
Messages
2,803
Greetings.

The last few months have been an eye-opener for me. I have discovered there are a great many mortgage brokers who are either unwilling or unable to get RTO clients approved for mortgages.

I have fielded demands for extra information (such as market rent reports from the outset of the option), been told there are no banks currently willing to work with RTO deals, been told the best interest rate an RTO client can get is 5%+, been told the deal can only be approved if I register the option on title (which is the tenant's prerogative at any time, but makes no sense to do when we already have a signed purchase agreement in place), etc.

Here is a letter from a client of mine who was approved last week for a TD mortgage: "THANK you for sending us to Jenni, she has been AMAZING to work with, really night and day from (the mortgage broker), who basically made me feel like leasing-to-own was the biggest mistake I could have made, that we'd be stuck with a 5% interest rate, etc etc. Funny, because I went to them first because I thought we had no chance of qualifying with a big bank!"

There are many excellent mortgage brokers out there, and some who are great at working with RTO clients. However, my best success has come from working directly with a TD mobile mortgage specialist (able to work with any client in Alberta), who knows my business and my contracts, and is an expert at presenting the deal to the bank and to CMHC. Incidentally, the broker above tried getting the deal done through TD but couldn't do it through the broker channel, yet the client was approved through TD's mortgage specialist.

Bottom line: find someone (bank or broker) who is able to get deals done for you, and if you are continually hitting the same walls, find someone else.
 
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