Mortgages and OSFI restrictions

Security Lock

More, scrutiny, more security, more rejections, more more more! Gone are the days of common sense lending and the gray area. Sure tighter restrictions will help to keep the banks safer but at what cost to the general public. By increasing scrutiny (which mind you is fairly tight as is) it will become more difficult for people who may be self employed, have gone through a rough patch, or have a variable income of any kind. Your income last year was $22,000 because you underwent a surgery and couldn’t work? It’s unfortunate you don’t qualify for this mortgage you normally would even though you’re back to work. As mortgage agents and brokers it is our job to best represent you to the bank, and by increasing these restrictions they’re reducing the ways in which we can help you prove to the banks that you are deserving of the mortgage you need. While yes income that is unverifiable should be treated cautiously there are some situations where people don’t have the necessary forms or exact requirements, but do have the necessary finances for the mortgage they’re applying for. There is acceptance, denial, and common sense. The latter is starting to be alienated in the application process. Rather than looking at a client as a person, with a reason behind their lack of income over the past two years, (whether they were sick etc.) they are starting to be seen as nothing but numbers on a page. And if they don’t fit into the perfect cookie cutter mold of a client, they’d be rejected. This puts an unfair strain on people to avoid anything that might cause them to miss work as in life there will be unavoidable issues, and it is unfair to punish people and their chance at what they deserve over circumstances they cannot control. While having certain restrictions can be a good thing and provide security for banks, we must maintain a balance, as not to ruin deserving people’s chance at a mortgage.

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