Brokers say they are experiencing longer than average turnaround times with the banks, suggesting it could be a result of a flooded market due to collective client fears that rates will continue to increase.
“I would divide the segment into two parts; the adjudication part with the banks in general is probably twice or three times as long because of the rush of people trying to rush deals,” Andrew Galea of The Mortgage Management Group told MortgageBrokerNews.ca. “The monolines are still adhering to much faster turnaround times.”
Galea believes a flood of buyers are looking to take advantage of the market before rates increase.
“People who would usually sit on pre-approvals are now trying to close as soon as possible,” Galea said. “Those who wouldn’t be totally committed are now having a fire lit under them to act sooner rather than later.”
The wait times are making things dicey for brokers when client close dates fast approach while deals are still on the lender’s table.
“I have a few closings coming up on the 30th (of August) and the lender response times have been lacking,” Deepak Bansal of Dominion Lending Centres Mortgage Village told MortgageBrokerNews.ca. “I have a feeling that they are inundated with deals because of rate increases… clients are getting in before further increases.”
Bansal currently has deals on the table with a specific lender that usually has a one day turnaround. He has been waiting on the lender for over 48 hours, though.
Buyers are getting antsy and trying to close deals quicker to accommodate current rates.
“One client of mine changed his closing date to utilize a rate hold,” Bansal said.