If you are in the market for a new home and have already been pre-approved for a mortgage, you might think you’re in the clear. However, this is not always the case. There are several reasons a mortgage can be denied after pre-approval, and you must understand what causes it to happen to ensure your mortgage will be approved.Reasons a Mortgage Can Be Denied After Pre-ApprovalThere are a number of reasons that a mortgage can be denied even after the prospective applicant has received pre-approval. Here are a few of the more common reasons:Change of employment – One of the requirements for being approved for most mortgages is steady employment. If you have changed jobs and are still in the probationary period with your new employer, this can negatively impact your mortgage approval, although exceptions may be made in some cases, like if the job change is within the same field. The length of time you are required to be with an employer varies, but typically it is at least six months.A poor credit report – You do not need perfect credit to be approved for a mortgage, but there is a minimum requirement for your credit score (and for most lenders it is a minimum score of 650). If you have been pre-approved but then acquire new debt or miss debt payments, this will hit your credit score and can potentially knock it down enough that you may not be approved.Additional debts – Related to your credit score, taking on large debts when trying to get a mortgage is not a good idea. Hold off on buying that new car or applying for a line of credit until your mortgage deal officially closes and you have the keys in hand.Changes in loan requirements – It is possible that after pre-approval, a lender or mortgage product may experience changes to their requirements and guidelines that result in you being denied the mortgage. These may include changes in debt-to-income policies, the savings required of the buyer, or a mortgage insurance premium increase.Appraisal issues – In some cases, the mortgage pre-approval for an applicant is subject to a satisfactory bank appraisal. If there are issues with the appraisal, the mortgage application could be denied.What To Do If Your Mortgage Has Been DeniedLuckily you don’t have to give up if your mortgage application has been denied. There are several things you can do to improve your financial situation and increase your chances of being approved:Improve your credit score – Raising your credit score is the most reliable way to convince lenders to give you a mortgage, since it shows you can make payments on time.Pay down debt – If your debt-to-income ratio is too high, pay down some of your debt to lower the ratio. A consolidation loan could help speed up the process if some of the debt comes from credit cards or other high-interest sources.Add income – Like paying down debt, adding income will help improve your debt-to-income ratio.Increase the down payment – By saving more money for a down payment, you will decrease the mortgage amount and the risk to the lender. As a result, they will be more likely to approve you for a mortgage.Get a co-signer – If you have unreliable credit, you could try getting someone to co-sign your mortgage application. This person must have a good credit history and agree to pay your mortgage if you can’t. However, many people refuse because it is a high risk to them.How to Ensure Your Mortgage is ApprovedIt is never a good feeling to be left wondering whether your mortgage application will be approved. There are a few things you can do to help ensure that you are not denied, including:Don’t take on any additional debts like vehicles, student loans or lines of creditDon’t make any large deposits into your bank accounts without having proof of their source, and don’t make any large withdrawalsContinue to save money and make loan payments on timeIt can be devastating to learn that, despite being pre-approved for a mortgage, you can’t get financing to purchase the house you want. There are several reasons this can happen, so be sure to consult with your mortgage lender if this occurs so that you can take the necessary steps to remedy your situation and get your mortgage approved as soon as possible.Still Have Questions?As you begin your home-buying journey, you likely have lots of questions. You’re not alone. RE/MAX Canada hit the streets to find out how much (or how little) Canadians know about real estate, and offer some answers in the process..When you’re ready to buy, ensure you work with an experienced, professional real estate agent who can help you navigate the market. Click HERE to find a RE/MAX agent near you..fusion-body .fusion-builder-column-3{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-3 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-4{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}The post Can I Be Denied a Mortgage After Pre-Approval? appeared first on RE/MAX Canada.

Seeing average sale prices of Vancouver real estate grow exponentially is nothing new. Whether it was increasing demand or the influence of foreign investors, prices have been climbing for a long time. But the pandemic brought on growth as this market had never experienced before.Just one year ago, it seemed like every month ended with home sales and pricing records. With prices reaching all-time highs, bidding wars were fierce and housing supply wasn’t keeping pace with demand. Many were wondering whether a correction was on the horizon. Now, we may be witnessing that correction.The State of the Vancouver Housing MarketA lot has changed since 2021. High inflation, rising interest rates and economic uncertainty are the new norms and are impacting the housing market. A recent survey by RE/MAX Canada found that 44 per cent of Canadians planned to temporarily shelve their home-buying plans this fall, due to rising interest rates. Meanwhile, recession worries had 41 per cent of Canadians waiting to purchase/sell their home. Have these trends made their way into the Vancouver housing market?Like many major markets across Canada, Vancouver has seen prices climb while the number of sales falls. Between January 1 and August 31, 2021, the average residential sale price was $1,228,124. During the same time frame in 2022, the price shot up 15.69 per cent to $1,420,839. But it looks like the winds of change may be blowing westward.Fewer Buyers Surface in Vancouver MarketSeptember saw the same overall sales trends continue, according to the Real Estate Board of Greater Vancouver (REBGV). Residential home sales totalled 1,687, a 46.4-per-cent decrease year-over-year. Those sales figures also represent numbers well below historical averages, with September sales sitting 35.7 per cent below the 10-year average for the month.Andrew Lis, REBGV director of economics and data analytics, sees rising inflation as a primary driver of decreased sales. “With the Bank of Canada and other central banks around the globe hiking rates in an effort to stamp out inflation, the cost to borrow funds has risen substantially over a short period. This has resulted in a more challenging environment for borrowers looking to purchase a home, and home sales across the region have dropped accordingly.”Average prices also experienced a decline – a new development in the market. Prices are still up on a year-over-year basis, but we are now seeing a downward trend from earlier in 2022. September’s MLS Home Price Index composite benchmark price in Metro Vancouver is $1,155,300, representing an 8.5-per-cent decline over the past six months and down 2.1 per cent month-over-month.“With fewer homes selling and new listings continuing to come to market, inventory is beginning to accumulate, providing buyers with more selection compared to last year,” Lis said. “With more supply and less demand within this market cycle, residential home prices have edged down in the region over the last six months.”Rising Interest Rates and Vancouver Real EstateThe Bank of Canada’s (BoC) quest to lower inflation has had ripple effects on the real estate market. By raising interest rates – 50 basis points during its October policy meeting – the BoC has made it more challenging for homebuyers to enter the market, as we have seen in Vancouver with more sellers than buyers.“Prices are sliding fast, and the exuberance that permeated these markets earlier this year is being replaced by fear,” according to RBC assistant chief economist Robert Hogue. “In the Toronto and Vancouver areas, the decline in activity is quickly becoming one of the deepest of the past half a century.”With more tightening expected for the remainder of 2022, economists and market observers think there could be more easing in prices and sales activity heading into 2023.What About Foreign Buyers?For years, many policymakers and housing experts had recommended measures to rein in foreign buyers using the Vancouver real estate market as an investment, artificially lifting valuations and pricing first-time homebuyers out of the market. This led to a 20-per-cent provincial foreign buyer’s tax. British Columbia Premier John Horgan also introduced the municipal empty home tax and the speculation tax, effectively deterring foreign buyers. In addition to the coronavirus pandemic, and the subsequent travel restrictions, property purchases from foreign homebuyers have significantly cooled off.In 2019, there were more than 30 foreign-involved sales in five of the 12 months in 2019, resulting in the 20-per-cent levy. From March 2020, there were six months when there was only a handful of transactions by foreign buyers.So, will most foreigners ditch Canada’s west coast as part of their real estate investment plans? Andy Yan, director of the City Program at Simon Fraser University, told Business in Vancouver (BIV) that a lot has changed across the globe during the COVID-19 public health crisis.“Of course, the rest of the world has changed. Let’s face it, one of the main sources of growth had been coming in from China, and the Chinese rules – from the people I’ve talked to – have certainly tightened up. That brings a complication that we may not see the [previous high levels of] demand come back in”Is the Vancouver Housing Market in for a Collapse?Does raising interest rates, a decline in buyers, and lower sales prices add up to a collapse? The experts don’t think so. “While we have seen some easing in prices, the sky is nowhere near falling,” explains Elton Ash, Executive Vice President, RE/MAX Canada. “In fact, there is relative stability in terms of market conditions, so buyers shouldn’t expect big bargains. Sales-to-active listings remain squarely in balanced territory overall and even tight in some areas. In Vancouver, for example, supply was lower this June [2022] than last in 50 per cent of markets, and sales are down accordingly. This trend will likely keep prices fairly stable moving forward.”.fusion-body .fusion-builder-column-4{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-4 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-4{width:100% !important;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-4{width:100% !important;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-5{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}The post Will the Vancouver Real Estate Market Crash Soon? appeared first on RE/MAX Canada.

Do you ever wonder why your favourite movie stars always look so good? Or why your local coffee shop is always spotless and decorated for the season? The reason is simple; they have a team of professionals who meticulously arrange every detail.Before you start wondering how this relates to your home-buying journey, think about all the professionals you have standing behind you as you search for your dream home. Besides your real estate agent, you have a whole team helping guide you home, including a real estate lawyer.What Does a Real Estate Lawyer Do for the Buyer?Buying a home is likely the most significant transaction you will make in your lifetime. This life-altering decision requires the support of professionals to make sure that every step of the process is followed, ensuring that every “i” is dotted and every “t” crossed.The person that takes care of the dotting and crossing on every legal document is your real estate lawyer. If you’re new to the home buying experience, you probably know that you need a lawyer but may not be sure what role they play.A real estate lawyer is necessary both for the buyer and seller. We’ll start with their role on the buyer’s side. They ensure the transfer of ownership, outlining the terms of your purchase agreement and a clear title to the property. That is their role at the most basic; it goes far beyond, including the following:Review the Agreement of Purchase and all other legal documentsEnsure there are no claims listed against the propertyArrange for Title InsuranceEnsure you have a valid title upon closingEnsure property taxes are up to dateCalculate the land transfer tax due on closingDraw up the mortgage documentsClose the transaction and ensure all legal and financial conditions are metExchange legal documents and keys with the seller’s lawyerWhat Does a Real Estate Lawyer Do for the Seller?The real estate lawyer’s role on the seller’s side is also related to ensuring the transaction goes smoothly and all legal aspects are covered. They are focused on the mortgage payout and a smooth transfer of the property’s title. Just like on the buyer’s side, a real estate lawyer performs several key tasks, including:Review the Agreement of Sale and other legal documents before you signAssist you with the negotiation of the terms and conditionsPrepare the deed to your houseDeal and remedy title issues as they occurClose the transactionEnsure all legal and financial conditions have been metExchange legal documents and keys with the Buyer’s lawyerWhen Do You Need a Real Estate Lawyer?Whether you are buying or selling a home, you will need a real estate lawyer to register the transfer of property with your province’s land registry office. You are required to have a lawyer because lawyers can access Provincial Electronic Land Registration Systems. Every province has different regulations, but a legal professional is necessary to register a property and purchase a home to ensure that it is legal.Can a Real Estate Lawyer Represent the Buyer and Seller?Now that you have a better understanding of the real estate lawyer’s role, it’s time to choose one that will best represent you throughout the transaction. Choosing a real estate lawyer is something your RE/MAX agent can help you with, as they often work closely with trusted professionals. For more tips, you can also view our post on finding a real estate lawyer.Are you also looking for a real estate agent? You can find one HERE.Have More Questions?Real estate can be confusing. RE/MAX Canada hit the streets to find out just how much (or how little) the average person knows about the Canadian housing market, and to offer some answers..Connect with a RE/MAX agent for these answers, and more!.fusion-body .fusion-builder-column-5{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-5 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-5{width:100% !important;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-5{width:100% !important;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-6{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}The post What Does a Real Estate Lawyer Do? appeared first on RE/MAX Canada.