A recent front-page article in the Globe and Mail highlights a key issue related to property valuation practices in Canada. The article highlights a database that mortgage and line-of-credit lenders use as part of their internal application approval processes. While this method allows for faster responses, it relies on averages and estimates that could be hurtful to both lenders and borrowers. By not digging down the specific property level, this system can’t properly account for properties that don’t fit in with local trends. The consequences work both ways, with the potential to lend extra money against a house not worth in the same range as its neighbours, or a loan/mortgage denied because the surrounding properties bring down the average below the acceptable loan value. DMTI helps lenders address these issues by helping unlock information at the individual property level. They are still able to quickly process new applications but by accessing the necessary information on an individual property and breaking down trends into more granular areas, lenders can be more informed when making decisions.
Read the article here >>
Learn more about how DMTI helps here >>
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