Accurate Property Details = Faster Approvals
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June 7, 2022 |
Accurate Property Details = Faster Approvals
Six Key Property Details
It won’t surprise you that most alternative lenders, including Neighbourhood, use the property as their primary security for their mortgage. The reason is simple, Alt-Lenders do not have the same level of income verification as financial institutions.
For this reason, it’s important to include accurate property details. For instance, Neighbourhood uses sophisticated technology to determine if we can lend on a property or not. Including information as simple as the postal code. In fact, we have a postal code search bot on this website that checks to see if a property is within our lending area based on the postal code.
Internally, we can only lend on properties that meet our credit box, and property characteristics primarily drive our credit box because, you guessed it, we are an Alt-Lender. In addition to the credit box, underwriters use property details to add the correct conditions to a file. In short, correct property details lead to faster decisions and less back and forth with the underwriter.
Here is a non-exhaustive list of the critical property details to double-check before submitting to any lender, and when in doubt, call your BDM.
Title Type
Many lenders have different rules for strata versus freehold, and most lenders do not lend on leasehold.
Property Type
Many lenders have different rules depending on the property type. Some property types they don’t lend on at all.
Construction Type
Many lenders have different conditions of the home is new versus existing.
Living Space
Most lenders have a minimum.
Lot Size
Most lenders have a maximum.
Age
Lenders can have a maximum based on the property type. Many lenders have different rules for strata versus freehold, and most lenders do not lend on leasehold.
Author Profile
Jared Stanley is the Senior Director of Originations at Neighbourhood Holdings. He has been in the industry for nearly 15 years. In 2015, Jared was awarded Underwriter of the Year by the Canadian Association of Accredited Mortgage Professionals. He is also a motorcyclist and dog lover.