Where The Insurrers Consistently Decline Applications

Through my regular review of incoming deals and the insurer's decisions on these deals, I have found some situations where the insurers consistently decline applications.

I would like to share with you some of my findings with the hopes that you will gain a better understanding of what insurrers cannot consider;

-The insurers consider refinance applications with trades that are currently or recently delinquent or have balances that are at or over their limit to be considered default management.

-Minor derogatory trades (R2s) can be considered after a bankruptcy on a case by case basis however, more serious derogatory items after discharge are not considered.

-Applicants who have been twice bankrupt or have any combination of bankruptcy, consumer proposal or credit counselling.

-Trades that are maintained through a bankruptcy are not considered to be re-established credit. The insurers are looking for new credit after the bankruptcy.

-Credit that is not appearing on the credit bureau will not be taken into consideration in determining credit worthiness.

Finally, I have found that the insurers look at all aspects of the deal tend to look unfavourably at deals that have multiple risk factors. A previous bankrupt with short job tenure, maxed out ratios and gifted downpayment would be more likely to be turned down than the client that had saved downpayment, low ratios and long term job tenure.

As always, if you have any questions, do not hesitate to give me a call at 1-888-292-2156.

Thank you

Joe Malek, AMP