Why Choosing the Right Mortgage Professional Matters More Than You Think.

MullenAndMullen
Oct 20
2 min read

Updated: Oct 31

Recently, a major chartered bank launched a highly competitive promotion: 3-year fixed mortgage rates at 3.69% for insured files (Purchases with less than 20% down payment) and 3.99% for conventional files (This is for purchases with more than 20% down payment and/or for refinances) . These rates were among the best in the market, attracting a surge of business for both the bank and its mortgage brokers.

We had pre-approved a young couple earlier in the year. When they found their dream home and made a successful offer, they visited their local branch to withdraw funds from their First Home Savings Account (FHSA). While there, the branch financial adviser offered to take over their mortgage application, assuring them everything was under control — no need to come back to us the mortgage broker.

They also checked rates at another bank, but our original bank’s promotion was still unbeatable.

Then, the unexpected happened.

Their mortgage application was declined. The branch adviser escalated the issue to senior management, but the answer remained a firm 'no'.

When the couple came back to us, we were shocked. The file appeared solid, with steady income, great credit, and debt service ratios well within typical limits. The reason? The bank said its debt service ratios exceeded the 39/44 threshold. But the pay stubs were complex, and the adviser hadn’t interpreted them correctly.

Armed with their T4s, we knew there were valid ways to present their income that would have easily qualified them. We asked the bank’s Business Relationship Manager if we could resubmit the file with the correct interpretation, but due to bank policy, once a file is declined and escalated by a branch, it can’t be resubmitted by a broker.

The lesson here is clear: not all mortgage advisers are alike. Branch advisers often are generalists and may not have the specialized mortgage training or experience that a full-time broker brings to the table.

The couple lost out on a fantastic rate simply because their income was misunderstood, and once the file was declined, their chances disappeared.

Bottom line: Mortgages can be complicated, especially if your income isn’t straightforward. Being declined isn’t just frustrating; it can shut the door on the very best deals. Before trusting your mortgage to a branch adviser, ask yourself: Do they truly specialize in mortgages?

Putting the biggest financial transaction of your life in the right hands matters more than ever. Interest rates have decreased across all Financial Institutions, and certain conditions apply to obtaining the lowest rate. At MullenandMullen.ca Mortgage Architects, we work for YOU! Not all Banks guarantee the lowest possible rate and best mortgage product for your financial goals. We believe in educating first and ensuring successful homeownership.