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Frequently Asked Questions (FAQs) - Michael Sjerven

I already know another mortgage broker, so why should I work with you instead? There are quite a few mortgage brokers around, but not all are created equal. Michael takes pride in staying up-to-date on industry changes, providing strong customer service, and being creative to come up with the best solution for you. For the more challenging files (e.g. credit/income issues), we communicate with literally dozens of lenders until we have a mortgage commitment or alternative option for you. If there is a way to get your mortgage set up and funded, we will arrange it. Michael Sjerven holds a business degree and mortgage broker licence, and has a background in sales and lending. Other reasons to work with us include a convenient downtown Vancouver office location and application processing no matter where you’re located within British Columbia via phone/Internet. Please call Michael from 9am-9pm, 7 days a week. As it does take time to arrange a mortgage, we do ask for an exclusive broker commitment once you have decided to begin an application with us.

What is your best rate? This is one of the more popular questions and also one of the hardest to answer prior to a full mortgage application. Please refer to our rate page to see current deals. Keep in mind these rates are not available to all applicants as they are based on specific criteria (insured, closing date, etc.) and approved credit. We always aim to get you the lowest rate possible. However, it can be difficult to quote an exact rate until we have gone through the application process with you. We hope you will work with us and trust that we will get you the right mortgage. Just looking for lowest rate now? We challenge you to call your bank first and ask them for the lowest rate. Then come back to us and 9 out of 10 times we will have the same or better rate.

Bank willing to match our rate? With banks getting more competitive they may offer to match our rate. We are still confident we have a unique competitive advantage which includes unbiased long term expert advice and planning, as well as more flexibility to get deals approved. Also, we have the ability to switch you to another lender (for a better rate) after the term is complete. It’s not by chance that mortgage brokers are a growing trend in BC.

My bank/broker is offering the same or better rate than you, so why would I call you? Getting the best rate is only part of the equation. Many lenders offer low rates only to charge higher penalties upon payout of the mortgage, or have lower prepayment privileges. Having the ability to make extra payments can save you thousands of dollars and shorten your amortization. The low rate you are being offered might sound great, but always read the fine print. For instance, a variable-rate mortgage may be lower at the onset of your mortgage, but fluctuates with the prime rate. Although we always aim to find the best rate in the market, it is sometimes worth paying a slight premium to get a higher quality mortgage product/lender that meets your unique needs. Some of these preferred lenders offer better terms, less penalties, more payment options, portability, additional credit lines, more competitive renewals and more.

I prefer to deal with my bank as I feel more secure and already have a relationship with them. Why work with you? We’re experts in our field and focus on mortgage products from all lenders – including banks, credit unions and trust companies. In comparison, the banks can only offer you their own line of products. And in most cases, we can beat the rate your bank has offered you. The major Canadian banks do have a lot of power, and for years have gotten away with over-charging customers. Working with an independent broker puts the “ball back in your court” and forces these lenders to “sharpen their pencils” and compete for your business. Please read the testimonials page to see cases where we easily beat the bank.

How much do you charge for your services? The majority of the time we do not charge for our service – it’s free! The bank/lender pays the broker a finder’s fee, which is how we get paid. There can, however, be broker/lender fees involved for difficult or private mortgages, such as sub-prime or second mortgages. These fees are fairly minimal based on the interest and size of the transaction. Other factors include how much extra time we have to spend on the file to get your mortgage funded.

How can I make sure I have all the right information, or trust you to handle my mortgage? We highly suggest gathering lots of mortgage information before proceeding with a mortgage. Read the testimonials on our website or give us a call. Michael is glad to offer a free phone consultation to answer all your questions. If you have the urge to talk to your bank (and not just us), then we recommend coming to us once you have done so. We believe once you see what we can offer, you will be more than satisfied with the options we have and will decide to work with us.

Isn’t the bank the only place to go for a mortgage, and aren’t mortgage brokers expensive or a last resort? No, but it was not long ago when banks did have a monopoly in Canada. Major banks have large advertising budgets and many Canadians automatically walk into the nearest branch for all financial matters, regardless of a bank’s impersonal feel. With awareness of mortgage brokers increasing, particularly amount young urban educated professionals, times have changed. More and more people are now using mortgage brokers for their everyday financing needs. Mortgage brokers work for you and make the lenders compete for your business.

What lender will you set up my mortgage with? The lender we decide to send your mortgage to will be the best match for your unique situation. We always try to get you a competitive rate, depending on your credit score, income, etcetera. We work with several well-known lenders including Scotia, TD, ING, Coast Capital and FirstLine (CIBC), as well as other not-so-well-known lenders such as Merix, First National, Street Capital and many more. We even have our own mortgage product line called the VERICO Mortgage. The lender is not disclosed to you until we have all paperwork approved. Most of these “wholesale” lenders are non-bank financial institutions and only deal with mortgage brokers, not the general public. The cost savings of not having a “brick and mortar” location and outsourcing salaries are passed on to the consumer. As well, further rate discounts are handed out based on the volume of business mortgage brokers do with each institution.

Can I work with multiple banks and brokers at the same time? No, this is not a good idea. We recommend getting as much information as possible before talking to us. When you come to us, we will review your information and give you an idea of the available rate/terms. We only work with clients on an exclusive arrangement before proceeding with an application. Working with multiple banks/brokers at the same time makes getting an approval a lot more difficult for a variety of reasons. Working with multiple banks/brokers can damage your credit score and decrease your chances of an approval.

What are the chances of getting my mortgage application approved and funded? One short answer: Strong. Most clients who have reasonable credit, income and are serious about getting a mortgage are able to secure a mortgage. It is also important to demonstrate sufficient income (or proof of self-employment). The large majority of applicants (80%+) will qualify without any major issues. The best rates are not available to all applicants, and credit/income challenged applicants may end up paying a little more, but they can often still be approved for a mortgage. There is a mortgage product available for almost anyone – call for more details.

What documents will you need from me? We have a variety of forms/documents we’ll have you sign, along with: Employed: Job Letter, Recent Paystub, and 3 months’ worth of bank statements (verifying down payment) Self-Employed: 2 years CRA NOA, certificate/articles of incorporation.

How long does it take to get the mortgage approved and funded? We can usually get a mortgage approval within a few business days, and funded in as quick as 7-10 business days. But it’s better to allow more time as small details can sometimes slow the process down a little. It’s good to leave a month for purchases and renewals, while refinances are less time-sensitive. When entering into a purchase contract, having at least 7-10 business days to remove subjects (inspection, financing, etcetera.) is also recommended. Planning ahead and allowing adequate time helps to avoid the stress of last-minute issues.

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