I have seen a few sales fall apart recently on financing, not because of the buyer's credit, but because of a blemish on their co-signer's credit. We are also seeing many people with even very small items on their credit bureau be completely denied financing.
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"Over the last few weeks we've seen some very different things happening with new home purchasers. For the first time in a long time lenders are wanting to see the bank statements for deposits that were placed a year ago, no longer are they accepting the deposit receipts from 12 months ago, which was the norm in the past.They are now wanting the clients to go all the way back for the 12 months to verify it is their money.
Employment verification is now being done in some cases as late as two days before possession. If the client qualified with a job 10 months ago better hope he's still at that job today. We have two files sent to us this month where the client has lost their job at the last minute and are now scrambling to find a new one before possession.
Gifted down payment once it was good enough to simply have the gift letter and the money deposited, now we are seeing lenders ask for the gifter accounts as well.
Make sure your broker is on top of things and that the deals are as clean as they can be, the lenders are watching Alberta extremely close and making sure everything is dotted and crossed before they will fund."