“There is a Canadian citizen that applied for a mortgage and a person who applied to be a Canadian citizen – they’re a couple – and I disclosed to the lender that she is pregnant and that she has applied for permanent residency,” Stephane Prevost, principal broker at Opulent Mortgages told MortgageBrokerNews.ca. “The lender declined the file because we were using the combination of both incomes; she’s on a work visa and she has been here for four years.”
Prevost told the lender about the pregnancy because he believed it would escalate her application for permanent residency and demonstrate her commitment to staying in Canada. However, the lender – whose name Prevost refused to disclose – believed the pregnancy could potentially change the client’s income level.
“The lender declined the file because, as they said, she is pregnant they can only use 60 per cent of the income,” Prevost said. “I (voluntarily) disclosed to the lender she was pregnant to solidify the fact that she is on a work visa, that she had applied for permanent residency, and it would escalated the process for her to become a permanent resident.
“But we don’t know what the outcome of the pregnancy will be and as far as I’m concerned it’s discrimination.”
According to Prevost, the clients are “extremely qualified,” have high credit, a “very reasonable income,” and low debt to income ratios.
However, this particular file may eventually get approved.
“(They refused) until five minutes ago when they found out I was going to make a complaint and it got escalated and (now) I’ve got a verbal approval,” Prevost said. “This issue is resolved but I’ve never once seen a lender use that as an excuse to get out of the deal.”
One broker’s application was denied by the lender after he voluntarily disclosed his client's pregnancy.