In late November I had the good fortune to attend the MPC conference in Vancouver. The conversations that I had with our lender partners all came back to the same topic.…. efficiency. You may have noticed that many of the lenders have moved their numbers up to where they are expecting 75% efficiency before offering any bonuses to the brokerage. Here are some of the best practices that you can follow as a broker?
- KYC, know your client. We teach that collecting paperwork in advance of submitting a deal will always allow you to have exact information in the file. The list is quite long sometimes but the basics will always be, letter of employment and a pay stub, 3 months’ bank statements for down payment. If there is over time or they are self-employed or if they own rentals then plan on collecting T1 generals, Notice of assessments, property taxes and leases. The more information you have up front the better and the more accurate your submission will be to the lender.
- KYL, know your lender. While CMHC guidelines are fairly straight forward, knowing what the lender will accept as income or property or what their rental offsets are will highly increase the possibility of the deal being accepted by them. When I first started in the industry I had minimal support but I knew one thing from my sales background and that was that we have a product to sell. I spent most of my time researching the lenders guidelines. Good thing because in my first full year in the industry I did 42 million dollars by myself.
- KYR, know your rates. The industry has become so complex in the last three months that we stopped publishing our own rate sheets. We now use head offices rate sheet and I suggest that the team research the lenders before submitting. This way they will have the right rates if it is insured, insurable or conventional, I’m still sorting those ones out personally.
- Last but definitely not least, stop shotgunning files out to multiple lenders, I know we have a lot to choose from but this just creates confusion and can destroy what should be good funding ratios and efficiencies among the lenders. If you do the required work as above, you should only need to send it to one lender.
Len Lane, Mortgage Broker
Dominion Lending Centres
Check out more great blog content from Len – http://www.brokersforlife.ca/blog