Mortgage applications are getting very detailed.
After 35 years in the industry, I thought I saw all that could be seen. After all, business is normally in cycles.
This past few years CMHC, OSFI and the Canadian Federal Government have continuously tapped the brakes on a previously robust mortgage industry. I actually agreed with some of the tightening, because I want to see this industry remain strong.
Lately, however, I have run across some of the more bizzarre examples of details. Things like pulling titles on every address shown on your history on the credit bureau, just to prove you are not responsible for the mortgage on a prior address or that the number of homes you have declared owning are accurate. That is an extremem example, but it has recently happened to one of my clients.
I agree with gathering details that are more specific than stating somebody has $300,000 in RRSPs. Remember that everything you declare may be scrutinized and approved. Somethimes the underwriter accepts your numbers, but if you tell your broker you have $300,000 in RRSPs you better be able to back that stament if called on. Banks are asking for specific investment amounts and places that the funds are invested.
Lessons learned from the US subprime mortgage meltdown have the entire worldwide credit industry cleaning up their act. We are all responsible to help it improve. Canada has always been strong, but we are not immune to downturns.
Just be prepared to dot your i's cross your t's and be patient.