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Mortgage-Matters

It’s a sellers’ market

The most recent stats from the Association of Interior Realtors confirm that there is low inventory available to choose from for those who are hoping to buy a home.

This will create more competition for the available properties and potentially multiple offer situations with homes selling for higher than the asking price.

If you are in the market for a home right now or are considering a purchase this spring, here is my tip to increase the odds of you being the successful bidder in a possible multiple offer situation. Take these steps and you might avoid some of the craziness that could happen this spring market.

This is my best tip and easiest tip.

  • Get pre-approved for your mortgage financing. Not pre-qualified but a full pre-approval.

Before looking for a home or placing an offer, work with your mortgage broker to complete a full mortgage pre-approval. This will include the collecting of all supporting documentation that a lender will require to provide a final approval for your financing.

I will advise you of your purchasing budget, review any potential challenges and ensure you are set to go other than finding a suitable property.

We can also review the types of properties you are interested in and advise whether there might be any potential financing challenges because of property issues.

If you do all the work upfront it could prevent your offer from falling apart because you were not able to secure financing for your purchase or possibly losing the property by needing to request an extension to finalize your financing which the seller may not be prepared to offer because there are backup offers on the property.

Being a pre-approved buyer could place you in a more favourable position in a multiple offer situation.

I am seeing more unconditional offers meaning the offer does not include a condition for financing.

I have to say this first:

  • Do not be tempted to place a subject-free offer.

Subject to satisfactory financing is a key clause that needs to be included in every offer. You could be the most well qualified purchaser in history. Stellar credit, great income and job stability with a significant down payment, but in the end a lender could still decline your request for financing.

It is impossible for any mortgage broker to say absolutely that no condition for financing is required, as there are factors regarding the property which may arise after the offer is made that can impact financing.

These can be location, appraisal value, the overall condition of the property etc. Some banks will not even allow unconditional offers at branch level.

My best advice to you would be to never place a subject-free offer regardless of what others are recommending and to think long and hard about it unless you have the cash in the bank to cover your purchase in the event that you can’t secure satisfactory financing.

But the reality right now is that to secure a property in this market you may need to make a subject free offer. Please understand that’s a decision between you and your realtor.

If you feel confident with their direction that the value of the property will be supported, you always have the option to remove conditions. As a mortgage broker, my licensing prevents me from advising you to do so.

In these situations, I have had clients send me the property listing prior to going in with any offers and I can let you know if I see any concerns up front.

You can make any decision you want regarding an unconditional offer. My job is to ensure that you understand the potential risks and I will always provide my recommendations and I would encourage you to have a detailed conversation with your mortgage broker well in advance of placing a subject-free offer.

There are some strategies to minimize your risk, but an individual conversation would be required. To minimize risk it’s prudent to have a mortgage professional guide you with your financing right now.

In a seller’s market you need to be prepared to be successful so please give me a call to review your options at 1-888-561-2679 or email [email protected]



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About the Author

April Dunn is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects. She has been assisting clients to purchase, refinance or renew their mortgages for over 20 years.

April has experience as a Credit Union manager, a Residential Mortgage Manager with a large financial institution and as a licensed Mortgage Broker. By specializing in Strategic Mortgage Planning she has the tools available to build a customized mortgage plan, with the features and options that meet your needs.

April provides a full range of residential and commercial mortgage financing options for clients all over the province of British Columbia and across Canada through the Mortgage Architects network.

Contact e-mail address: [email protected] or by phone at: 888-561-2679.

Website:  www.reddoormortgage.com



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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