The fears of mortgage lenders.
What do mortgage lenders fear?
So that you to understand mortgage loans better, you have to understand the 揻ears?of a mortgage lender. Once you understand their point of view better, it is easy to see whether they will accept your mortgage application - taux hypothecaire.
A lender has two big fears:
Losing Money
The lending institution does not want to lose any of its capital that he has lent, nor the interest he is supposed to receive - taux hypothecaire. It happens (too often from the lender抯 viewpoint) that people do stop making their mortgage payments.
When this happens, the lender has even greater losses because he has to cover the fees of a lawyer to initiate the proper steps for the foreclosure of the home.
Then, he has to be concerned that the bank will be able to sell the home for an amount that will recover their costs of principal (taux hypothecaire), lost interest and lawyer抯 fees.
To lose time
Mortgage lenders are not interested in property management. They want to lend money and collect payments. Working with lawyers, taking steps for foreclosure, administering a home while it is in foreclosure and before it is resold are not the activities that he wants to spend his time on. He looks upon this as just a loss of time. 字串9
Even in the instances where the lender is not going to lose the principal (taux hypothecaire) because the loan is guaranteed by the CMHC or some other insurer, he will still try to avoid foreclosure by assuring that he only has good loans in his portfolio and that each borrower is a good risk.
You may ask, as many people do, 揥hy does the lender worry about my credit? He has the home as security on the loan.?
The answer is that the banks does not want your home, they only want the principal payments and interest you make on the home - taux hypothecaire. 字串7
