Cancellation PolicyJune 17, 2013
What is your cancellation policy?
intelliMortgage tries hard to maintain a fair and simple cancellation policy.
Because we dedicate a considerable amount of time and expense to ensuring you receive the best rate for your mortgage, we simply request the following:
If you ask us to obtain an approval from the lender of your choice, and we prepare and submit your application as you have instructed, and we secure the approval you requested, and you then cancel the application (either after we’ve arranged your approval or before the lender has had five business days to review your application), then a flat good faith processing charge of $295 is billed to the credit card you provide.
Does this fee always apply?
Absolutely not. Some cancellations are understandably beyond your control.
No fees ever apply if:
- You are not approved as you requested
- Your home doesn’t appraise for an amount that is sufficient for the lender to approve your mortgage
- You sign a purchase agreement and all conditions are not waived
- Your purchase closing date is delayed up to two (2) months
- You or your co-applicant lose your jobs
- The property is in a jurisdiction where this policy is not applicable
- You are in British Columbia or New Brunswick
- A lender (i.e., a bank, insurance company, monoline lender or credit union) quotes you a contract rate that is more than 0.1 percentage point below intelliMortgage’s offer for the same term and mortgage type, and you give us at least 24 business hours to match the rate before applying to that lender, and intelliMortgage is unable to match the rate. (Note: This rarely happens as we are extremely competitive. See also: After-Approval Rate Guarantee.)
Why do you charge this fee?
Apart from the losses we face from cancelled applications, cancellations are expensive for lenders too. To get each lender’s best rates, mortgage brokers are required to maintain high efficiency (a.k.a., high “closing ratios”). Cancellations destroy this efficiency and jeopardize our ability to offer you the very best possible rates.
intelliMortgage works on razor-thin margins because it gives back the majority of lender referral fees to you, by way of bought-down interest rates and/or cash rebates. In the unlikely event of cancellation, this good faith processing charge offsets some of the application preparation costs—ensuring we can keep offering valued clients like you the maximum possible discounts, each and every day.
Any other fees?
For regular residential online mortgages, intelliMortgage never charges fees for getting you approved or closing the mortgage. If you require sub-prime financing, please ask us for a fee quote because costs can vary based on the lender and property. Fees also apply to commercial financing but we do not offer commercial financing at this time.
Apart from the above, there are routine third-party costs that may apply, including:
- Appraisal cost: Appraisals are a normal part of the mortgage process and apply to most mortgages, unless you are putting down less then 20% equity. As a service to our valued clients, intelliMortgage provides appraisal rebates whenever an appraisal is required. See: mortgage appraisal costs.
- Legal/registration cost: As is normal in the industry, legal/registration fees and disbursements apply to all purchases and refinances unless otherwise indicated in the Mortgage Builder rate notes for the mortgage you’ve selected. These fees do not apply if you are merely “switching” lenders and have indicated “Switch” as your mortgage type in the Mortgage Builder. “Switching” means:
- You are making no changes to the mortgage terms
- You have a “standard charge” mortgage (i.e., not a readvanceable mortgage and not a secured line of credit).
- Discharge fees: Most lenders charge discharge or transfer fees to release your mortgage. These fees range from $75 to $300 in most cases.
In general, the interest savings from your new intelliMortgage should easily cover these incremental costs above.
If you have any questions on this information, don’t hesitate to email, live chat or call us any time. Keeping you informed is our mission and duty!