Challenging property locations can be stressful for both borrowers and brokers alike.
And this is especially difficult if you don’t know which lender is willing to finance more challenging locations.
Picture this: you have a new client and they have a perfect credit score and stellar income. But unfortunately, you’re still having difficulty placing a deal because of the property’s location. Maybe it’s too rural, maybe it’s in a neighbourhood the lender doesn’t like. Maybe the property is located on an island, has access issues, or is next to a property that the lender has issues with. No matter the reason, what can you do when the challenge is with the location?
Instances like these indicate how important it is to always be expanding your MIC and alternative lender database.
It’s surprising how many deals can be placed if the broker knows exactly which lender they need to call to get their deals done.
If you aren’t sure which lender to call, not all is necessarily lost. There are times where additional collateral has made the difference in getting a commitment from a lender. For instance, the subject property may be rural or maybe water access only. However, if the borrower also has another property such as a principal residence, there may be an opportunity to register the mortgage over both properties. By doing so, this will often satisfy the lender’s requirements.
But remember, it’s important to always have a lender who lends everywhere in your database, just for files like these.
Kokanee Mortgage has built its business for 40 years on lending just about everywhere. In fact, other lenders often refer files to Kokanee when they can’t fund them because of location challenges. Contact the expert underwriters at Kokanee Mortgage for help when you’re faced with a challenging property location.