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Long Commitment Times

LongwaittimesWe’re still hearing cases of commitments taking over three weeks to receive from one certain lender–who shall remain nameless.  This lender was the rate leader not so long ago.

That’s what happens when hundreds of brokers from across Canada nail a lender with apps all at once.  Rate sales are very effective for drumming up business–and in many cases, too much business.

If you’re looking for that extra 0.10% off, and want Canada’s low-cost lender, be prepared for unexpected delays.  Not only will the lender’s underwriters be swamped and put off your application, but your broker may need extra time to carefully review the lender’s guidelines before submitting your deal (if it’s a lender not commonly used by the broker).

If you absolutely must close in a few weeks or so, pay a rate premium (if applicable) and choose a fast-close lender like:  FirstLine, MyNext, etc.