{"id":913621,"date":"2026-09-29T04:14:15","date_gmt":"2026-09-29T04:14:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/913621\/"},"modified":"2026-09-29T04:14:15","modified_gmt":"2026-09-29T04:14:15","slug":"mortgage-lenders-say-credit-appetite-is-steady-but-complex-files-are-slowing-deals","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/913621\/","title":{"rendered":"Mortgage lenders say credit appetite is steady, but complex files are slowing deals"},"content":{"rendered":"

At a recent mortgage industry panel, lenders described a familiar frustration: files that might qualify on credit can still stall when borrowers\u2019 finances are complex or key documentation is missing.<\/p>\n

\"JamieJamie Doolittle, Head, BMO BrokerEdge<\/p>\n

\u201cI think the prime lending space is very much open for business,\u201d said Jamie Doolittle, head of BMO BrokerEdge, at the Toronto event. \u201cWhat I would say is there\u2019s a greater focus on affordability. We are every day saying \u2018yes\u2019 to borrowers who have a strong credit profile, a strong property profile, and who have reasonable debt servicing ratios.\u201d<\/p>\n

The other panellists were Devon Ajram, TD Bank\u2019s vice president of broker services and operations; Enrik Brassard, National Bank\u2019s associate vice president of broker channel; and Elena Robinson, First National\u2019s vice president of residential sales. Several said their risk appetite had changed little, even as borrower finances and documentation requirements grew more complex.<\/p>\n

Same credit box, more complex files<\/p>\n

\"DevonDevon Ajram, Vice President of Broker Services and Operations, TD<\/p>\n

Lenders said more complex files can take longer to assess, a delay brokers may mistake for a change in credit appetite.<\/p>\n

\u201cI don\u2019t think that we changed our risk appetite in any meaningful way,\u201d Ajram said. \u201cI think what we tend to see is the general direction of files towards the more complex, and I think that\u2019s a product of the economy that we\u2019re in, and a product of generations that are now adopting multiple careers, side hustles and revenue streams.\u201d<\/p>\n

Doolittle added that scrutiny is greatest when borrowers have elevated ratios, are highly leveraged, present affordability concerns or have gaps in their applications. \u201cWe are very focused on making sure that the story and the documentation and the numbers align,\u201d she said.<\/p>\n

Robinson said deals often fall apart early when brokers don\u2019t ask their clients enough questions upfront. She also noted that declining property values are a growing concern, but said a well-explained file can open the door to exceptions. \u201cIf you believe in those clients and you relay that to the lender, you can go farther,\u201d Robinson said.<\/p>\n

Ajram said TD has shown flexibility for some clients who might otherwise turn to an alternative lender. He cited brokers who tell him, \u201cBefore you go B, send it to TD.\u201d<\/p>\n

\u201cOur business-for-self policy is definitely one of the most competitive policies that exist on the street,\u201d he said. \u201cIf you haven\u2019t taken the time to really understand the policy, take the time.\u201d<\/p>\n

\"\"<\/p>\n

AML checks add to file delays<\/p>\n

\"ElenaElena Robinson, Vice President of Residential Sales, First National<\/p>\n

Brassard said anti-money laundering and other regulatory requirements have brought the biggest change over the past year. When a file contains an unexplained deposit, he said, lenders must trace the source of the funds, adding time and work to the review.<\/p>\n

\u201cThis cannot be overlooked, and we all need to do our part,\u201d he said. \u201cGood credit score, good credit behaviour, does not absolve you of good due diligence.\u201d<\/p>\n

Asked about the portfolio-level loan-to-income (LTI) limits federally regulated lenders must manage, Brassard said documentation remains the more pressing issue for individual files. He said National Bank can assess applications with high ratios when the circumstances are well documented and supported by mitigating factors.<\/p>\n

\u201cAll of our credit is manageable with a good story,\u201d he said. \u201cDue diligence is not manageable. You need to know.\u201d<\/p>\n

Ajram and Doolittle said TD and BMO have not come up against their LTI limits. Doolittle added that disclosing all household income, even when it is not needed to qualify, helps lenders manage their portfolios against those limits.<\/p>\n

Brassard offered the same file-packaging advice he received when he entered the business: submit a complete application, with full documentation and the borrower\u2019s full story, the first time.<\/p>\n

\u201cMy old boss always told me the file is at its nicest the first time you submit,\u201d he said. \u201cThe more you submit, the more it seems like you don\u2019t know your client.\u201d<\/p>\n

Banks gearing up for the renewal wave<\/p>\n

\"EnrikEnrik Brassard, Associate Vice-President, Broker Channel, National Bank<\/p>\n

The panellists also discussed growing competition from bank retention teams as more mortgages come up for renewal.<\/p>\n

\u201cThe banks have been way more proactive in managing that renewal wave than we have in the past,\u201d Doolittle said. \u201cThe banks are going to send them offers, it\u2019s probably going to be very focused on the rate, so if you can get ahead of them and have those quality conversations about how things have changed, I think you\u2019re going to have better success.\u201d<\/p>\n

Robinson added that brokers should be in touch with clients at least six months before renewal, noting some banks start even earlier. She said the conversation should cover the client\u2019s broader finances, including whether they\u2019ve taken on debt or need to refinance.<\/p>\n

\u201cMake sure that you own the client before someone else has the opportunity to do so,\u201d she said.<\/p>\n

Ajram said brokers may be better placed than they think. Close to 50% of TD\u2019s new-to-bank mortgage customers come through the broker channel, he said, while the bank still has room to improve at building deeper relationships with them.<\/p>\n

\u201cIf you think that you\u2019re up against the behemoth when it comes to actually retaining that relationship, you\u2019re probably wrong, and you probably have a much better shot at it,\u201d he said. \u201cBanks are very, very prescriptive about how they contact their customers, because we have to do it at scale.\u201d<\/p>\n

Visited 145 times, 145 visit(s) today<\/p>\n

AML<\/a> bmo<\/a> conference<\/a> Devon Ajram<\/a> Elena Robinson<\/a> Enrik Brassard<\/a> First National<\/a> Jamie Doolittle<\/a> lender panel<\/a> lenders<\/a> mortgage industry<\/a> mortgage trends<\/a> National Bank<\/a> panel<\/a> td<\/a><\/p>\n

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