Underwriting delays are widespread!

 

 

 

 

 

 

 

 

With so many people rushing to lock in fixed rates, many lenders are seeing record volumes.  As a result, underwriting delays are widespread.  

In many cases, application turnaround times are five or more business days.  Reports of certain low-rate lenders with two week backlogs in their queues. Also with many Realtors in Alberta insisting that their buyers are Pre-Approved it is creating a log jam for lenders. If you have all of the required documentation it is much easier for the lender to issue a quick pre-quilification certificate.

 

Remember that all high ratio deals are subject to CMHC and Genworth approval regardless of your pre-approval. It is important to note that CMHC and Genworth do not do Pre-Approvals and only work on live files.  

Normal approval times vary, but have traditionally been 1-2 days, sometimes even same-day. 

Application Tips:

• If you are purchasing a property and need to lift conditions quickly, make sure to keep the above in mind. Service levels are high so plan ahead 
• If you want a highly competitive rate, ask the property vendor for five days minimum to arrange financing.  (Consulting a mortgage planner beforehand will help you gauge the required approval time.) Often you will be able to submit a rate hold for 120 days without an application
• If you need a pre-approval, be prepared to wait 5+ business days in many cases.
• Have your documentation (job letter, pay stubs, etc.) on hand to minimize approval time.
• If you are just looking for a rate hold, often a name and number can secure your rate for up to 120 days 

On the plus side, once your application is submitted to a lender, that lender will guarantee you get that day’s rate if you are approved.  This generally applies regardless of how long it takes for the lender to issue an approval.

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