Chapter 17: Submitting the Application and Obtaining a Commitment

• The areas to review is Credit, Property and Employment

• Only one.

• If a Mortgage Agent doesn’t have appropriate funding ratios Lenders may decide to stop doing business with him or her.

• The lack of notes.

• Applicants’ Names
• Property Address (address of the security)
• Mortgage Amount
• Interest Rate
• Payment Amount
• Payment Frequency
• Term
• Closing Date
• Prepayment Privileges
• Conditions of approval
• Terms of the approved mortgage (such as fees, appraisal requirements, etc.).

a) An employed individual’s income?

• Income and employment confirmation by way of recent pay stub or a letter from employer confirming income and length of employment on employer’s letterhead and the most recent income tax Notice of Assessment.

b) A self-employed individual’s income?

• A copy of three (3) years income tax Assessments and Financial Statements;

• Contact the Underwriter to understand why the application was declined
• Contact the BDM if he or she disagrees with the decision
• Submit the application to another Lender

1. Filogix Expert, https://www.filogix.com/expert/filogix-expert
2. Newton Connectivity Systems, https://www.newton.ca/velocity
3. MortgageBoss, https://www.m3-tech.ca/boss

• Currently a mortgage agent license, with legislation changing to a level 2 license

• Currently a mortgage agent license, with legislation changing to a level 1 license

• A brokerage is required to provide detailed disclosure to lenders and investors involved in a mortgage transaction. The forms used for disclosure are:
  • Form 1 – Investor/Lender Disclosure Statement for Brokered Transactions
  • Form 1.1 – Investor/Lender Disclosure Statement for Brokered Transactions: Addendum for Construction and Development Loans
  • Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period
  • Form 2.1 – Renewal Form Waiver: To Reduce the Waiting Period
  • Form 3.0 – Information about Investor/Lender in a Non-Qualified Syndicated Mortgage
  • Form 3.1 – Suitability Assessment for Investor/Lender in a Non-Qualified Syndicated Mortgage
  • Form 3.2 – Disclosure Statement for Investor/Lender in a Non-Qualified Syndicated Mortgage
  • Form 3.2.1 – Supplemental Disclosure for Retail Investors in a High-risk Syndicated Mortgage

• No later than two business days before the earliest of the following events. This time period can be reduced to one business day if the investor/lender consents in “Form 1.2 – Investor/Lender Disclosure Statement for Brokered Transactions: Waiver for Reducing the Waiting Period”

• To ensure there are no errors

• A commitment that has conditions that must be met before the lender will fund the mortgage

• Common conditions include evidence of:
  • Employment and income
  • Down payment
  • Assets
  • Purchase and Sale Agreement, and
  • Other such documentation that may be required by the lender to prove statements made in the application