Lots of talk recently about the discussion between the banks and the federal government regarding the banks role in helping us out in the economy. The federal government has been pressuring the banks to be lending more to small business and individuals. What was the banks response? They emphatically have said they are lending…yeah right.
I always am suspicious when an industry is spouting off about anything and then is not willing to prove it with stats? All they are doing is talking. For what it’s worth I can tell you that in residential mortgage lending they are definitely lending less. Credit is extremely tighter and only the best applicants are getting loans. Any minor blemish is becoming increasingly more difficult to get approvals.
All the more reason clients today should be working with a mortgage broker who has many options at their disposal. If you are a strong credit risk then a mortgage broker will help you get the best rates as rates are definitely all over the board right now as lenders jockey for position and play with unprecedented interest spreads. If you have any blemish or small challenge with your situation then a mortgage broker will be critical as you will definitely need to talk to more then one lender to get approval.
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