If you are coming to the end of your mortgage term and need to renew your mortgage, you face many opportunities. You have the ability to change the terms of your mortgage including repayment, refinancing, renewal or switching. You also have the option to either renew your agreement with your current provider or transfer your mortgage to another lender. It is an optimal time to review your current financial needs and make some adjustments before you lock into another few years. A Mortgage Broker will be able to help you explore your options, find the best features for the best rate based on your individual situation and make the process easy.
As an experienced mortgage broker in Coquitlam, BC I have helped all types of clients fulfill their mortgage needs, so when a client approaches me with a complex demand or a challenging situation, I am excited to find a solution that will fit their unique needs.
Keep reading to learn about how I helped a client renew their mortgage.
The Challenge: To make it easier for the client to manage their finances while minimizing the cost of borrowing so that the client can paydown their balance.
I once faced a situation where my client that had two mortgage renewals with their credit union coming up. Their goal was to rearrange their mortgages to reduce the cost of borrowing which would allow for maximum paydown of their principal.
The clients were not happy with their existing credit union due to some service issues and they were also unsure that the renewal offer was fair given the extent of their financial relationship. Moreover, the clients were growing frustrated as they did not receive any advice or guidance on how they could streamline their mortgage and reduce their cost of borrowing. The clients even tried to move everything to a bank but they were declined.
The Solution: Leveraging my years of industry expertise and extensive professional network.
When the bank declined the client, they were encouraged to get in touch with me for a consultation. After listening intently to their needs, I was able to get a good sense of what they wanted the final picture to look like and where they wanted to go after their expectations were met.
I knew with the new lending rules, it was not going to be a straightforward task but with my experience with similar situations, I was prepared to deal with any issues along the way. In the months to come I would find myself facing a number of challenges:
a. Stricter qualifications: The recent changes in the mortgage rules meant that the qualification process was harder than when they previously applied for a mortgage.
b. Qualifying income was low: One applicant was self-employed while the other was on paternity leave. On the surface, the income shown was not enough to qualify for the level of borrowing requested.
c. Unacceptable security: The property they used as security became uninsurable and rates tend to be higher with uninsured properties. On top of all of this, over the course of the mortgage, the subject property became unacceptable by bank standards.
d. Decreased property value: The detached housing market was slowing down so the value of the property being assessed was insufficient as per the request.
e. Communication was challenging: The clients lived remotely, and all of the communication was electronically or by phone and sometimes even cell phone service was an issue.
To work around the situation we found ourselves in, I understood the rules in the context of my clients needs and identified ways to structure their request to meet the stricter guidelines. I leveraged my experience and restructured the deal to show that their level of income was sufficient to support the debt level requested.
Through my network of contacts, I was able to place the mortgage back to the same institution in which the clients were declined. This time, however, I sent the deal to my own contact that I had a good relationship with and was able to help them understand the client’s unique situation. After some deliberation, I was able to show that this was a case worth fighting for. Not only was I able to get the request approved, I was able to get one of the best prices in the market saving the clients over $10000 on their mortgage. I also took advantage of promotions and discounts that all went straight back into the client’s pocket.
For the most dedicated mortgage broker services, reach out to me at Chrisjungmortgagesolutions.com. Located in Coquitlam, BC, I service Metro Vancouver and surrounding areas. I provide financial services to residential and commercial clients and specialize in mortgage refinances and renewals. My business entails brokering financing deals, connecting borrowers with lenders, and above all other things, I work closely with clients and fight for the best mortgage products in the market.