Opinion: Think twice before doing it, and then hand over the mortgage to the bank consultant

Let me tell you a story.

Recently, a major chartered bank conducted a very competitive promotion: the 3-year fixed interest rate for insured documents is 3.69%, and the 3.99% fixed interest rate for traditional documents. Needless to say, these prices are popular, and the business is thriving, both in the bank and in the brokers they work with.

We had pre-approved a young couple earlier this year, but when it was necessary to seek approval on the home they had successfully proposed, they first went straight to the local branch and pulled the funds from their first Home Savings Account (FHSA).

When branch consultants intervene

During this visit, branch financial advisors also offered to process their mortgage. He convinced them that they didn’t have to go back to our team and that everything was under control.

They also explored another bank option, but the interest rates they offered were mediocre. Our promotions are still the best deals in town.

The deal was rejected, no second chance

But this is a turning point. After the financial advisor submitted the transaction, he refused. He upgraded the deal to senior management but got the company again.

I was shocked when they came back to us to tell me the news. I don’t understand why they were rejected. On paper, this is a powerful document. Reliable income, good credit and its debt ratio are within a reasonable range.

Misunderstanding income has cost them the deal

I asked them if they were told why they were rejected, and they said, “because our debt ratio exceeded the 39/44 limit.”

Now, their salary stubs are a bit complicated, I’ll give it to you. But we have their T4 and I can easily make a reason to use the two-year average or current full-time salary. Both will work. You just need to know how to interpret the document correctly.

I contacted the bank’s business relationship manager and asked if I could resubmit the documents. After all, it was rejected and I feel confident that we can get approval by interpreting the income correctly. But the answer is the company no.

Why bank policy closed

The bank’s position is that I do not want another broker or branch employee to receive one of our approved documents and try to submit them again. Although I understand this emotion, it is not the same thing. It’s not a poaching victory, it’s a rescue of the decline.

But the rule is the rule, and since the file has been upgraded and rejected by the branch, I have no way forward to resubmit it – even if I know how to fix the file.

What lesson is here? Beware of the person you trust in mortgage loans

This story is not that one bank is better than another. It’s about understanding that not all mortgage consultants create equality. You often talk to the generalist when you walk into a branch. They may have a good intention, but they don’t always have the same mortgage-specific training or experience as full-time mortgage brokers.

This can be huge. In this case, clients lose at a high rate and have to start over simply because their consultants don’t seem to fully understand how to package their revenue. Once the file is rejected, there may be no second chance.

Bottom line

Mortgage is complicated, especially if your income is even slightly standardized. Not only is it rejected, but it can actually prevent you from getting the best deal even if you are fully qualified. Before handing the documents over to someone behind the table at a local branch, ask yourself: do they really specialize in mortgage loans?

Because once the files are upgraded and dropped at the bank level, it may turn off the options you don’t even know about.

Make sure you put the biggest financial transactions in your life in the right hands.

Opinion articles and internally expressed views are the views of their respective contributors and do not represent the views of publishers and their branches.

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Bank Advisor Mortgage Broker Mortgage Strategy Opinions Ross Taylor

Last modified: October 6, 2025