• Mitch Speigel – Mortgage Agent
    Your Mortgage Group Professional
    Kora Management
    License #M08003984, FSCO #10315

  • Can I go in with a firm offer?

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    In a highly competitive seller’s market,  there is often pressure to submit a firm offer with no conditions. This pressure comes from buyers, who have been frustrated and disappointed by being outbid and from real estate professionals, sometimes unscrupulous ones, who will do anything to close a deal.

    Beware the penalties.

    A buyer, who made an unconditional offer just before the Toronto crash a  few years ago and then pulled the offer after the decrease, learned the hard way. A recent supreme court decision caused him to pay the vendor the difference of $600,000 and he didn’t get the house.

    So, my advice would be that if you are tempted to make an unconditional offer, DON’T.

    Believe it or not, there are times when people don’t listen to me. If you must make an unconditional offer, in spite of my advice to the contrary, work with a professional mortgage agent to minimize the risk.

    If you must.

    Ensure that you are doing everything possible to present a solid purchase offer with which you are comfortable and with the four following considerations:

    1. Get a REAL pre-approval, if possible.
      A real pre-approval means that your Mortgage Agent has received:
      Your employment letter
      •         Paystub
      •         Previous year’s T4 and Notice of Assessment (and 2014 as well if you work part-time, seasonally or receive bonus or overtime income)

    Submitting the necessary documentation to your Mortgage Agent allows them to accurately determine your income and debts.  A thorough review of both your credit score and credit details, your Mortgage Agent can make sure your credit score accurately reflects your true credit situation. If your Mortgage Agent finds anything is unusual or unfavourable, they have the ability to discuss your situation with the lender’s underwriter on your behalf.

    2. Have an open conversation with your Realtor and your Mortgage Agent.
    Ask the Relator and Mortgage Agent to discuss together a few key points:
    The merits or issues of the house you are bidding on.
    •         What the highest price you find acceptable to purchase this house would be and;
    •         What is your plan if the purchase price is higher than market value? If the appraisal on a home is lower than the purchase price, you will need to come

    3. Consider an alternative.
    Some examples of alternatives may be asking for 2 days on your condition of financing since you may have a condition of home inspection in place as well. This, combined with an attractive purchase price, may still be acceptable to the seller.

    4. Recognize that the responsibility for the decision to waive the condition or when to waive is ultimately yours as the buyer.

    Discuss multiple possible scenarios with your Mortgage Agent and Realtor so you are comfortable with the conditions on your offer.

    Smoked salmon for breakfast. The best sauce for any smoked fish is as follows: 2 parts sour cream to 1 part white horseradish. Adjust to taste and add a good squeeze of fresh lemon juice. Add chopped dill and mix.