Today the Bank of Nova Scotia announced that it is pulling back on lending to consumers as the economy slides into a recession. As a mortgage broker, and being at the front-end of mortgage lending, I've already noticed that RBC and CIBC have done this. At my office we're seeing more and more people walk through our doors that are not being approved for mortgage-financing at their own banking institutions. Perhaps they could have been approved a year ago, but not now because of credit-market tightening, they can't get a mortgage.
As the local Guelph real estate market moves into a buyers market, they'll be some good buys to be had in 2009. Consumers should ensure that they get a full pre-approval, not a pre-qualification from their mortgage broker or banker. If your lending institution hasn't pulled your credit history and asked for preliminary documents on income qualification and downpayment they have done a disservice to you. The reason is that when you do find a home, you'll want to feel confident that you will be approved for a mortgage.
If you have any specific questions about this, please don't hesitate to e-mail me.
1 comment:
Thank you for giving the general public an explanation of the bank's motives, and more importantly, additional options!
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