Last Week, My Sale Blew Up On Financing.
My listing.
To the buyer’s agent who blew up the deal: the education tab is calling. Click it. This Realtor had plenty to say about my age during the negotiation phase of the deal (bemusing since I’m a middle-aged 45 YO) and talked my ear off about all the deals she’d done. But here’s the thing: years in the business don’t mean you know what you’re doing. Toronto real estate isn’t about your age or how long you’ve had your license. It’s about knowing how to protect your client and how to get a deal across the finish line. It’s also about experience and I don’t mean to toot my own horn but she made it easy to tell that I had plenty more on her.
How It All Fell Apart..
This deal was conditional on two things: a status certificate review and a Toronto mortgage approval. At a price point of just under $2 million, with a doctor buyer who had a real estate lawyer dad, I felt reasonably confident. In hindsight though, looking back, there were signs.
Red flag #1? The agent kept bragging, “I’ve given him my bank guy.”
Red flag #2? A request for an extension. Fine. They waived the status condition in exchange for an extra day on financing.
Then I hear this gem, the flaming red flag #3: “He’s switching to his mortgage friend instead. He said he should’ve thought of him from the beginning.”
Enter the friend: a Level 1 mortgage agent: Brand new. Big talker. Almost no access to lenders. Basically no experience. Promised he’d qualify the buyer in a day. Guess what? He didn’t. Couldn’t.
At this point I had handed over the names of real, vetted mortgage brokers for days — the people I know could get it done. But by then the buyer was embarrassed, discouraged, and convinced the deal dying was “a sign.” Spoiler alert: it wasn’t a sign. It was a bad Realtor and worse mortgage advice.
Listen Up! Your Pre-Approval Is NOT Money in the Bank
A Toronto mortgage pre-approval is not money in the bank. It’s a ballpark estimate, often issued with minimal document checks. It makes you feel good, but it doesn’t guarantee you can actually close on a house. If you want to go look at homes, I require, as a top Toronto Real Estate agent, you to get this FIRST. Not online. Not by walking into your bank. By talking to a trusted mortgage professional.
A real Toronto mortgage approval happens ONLY after a sale. If we’re in multiples for a house you may not get the luxury of offering with a condition and win. If we’re not and you can have your offer accepted with a financing condition, amazing. Only then, conditional or firm, will the lender underwrite the property and your personal file. That’s a whole other ballgame.
In Toronto there’s an entire sale in between those two points. Get this wrong, and you’re gambling with your deposit and flying with a potential lawsuit.
“Mortgage People” Are NOT Equal
Here’s the hierarchy, from worst to best:
- Dad’s financial planner: Love Dad. Love his RRSPs. But unless this person works with multiple lenders every single day, they’re not your quarterback for a Toronto deal.
- Level 1 mortgage agent: If you read the story above, you know this is a hard no. Brand new, minimal access, minimal experience.
- Level 2 mortgage agent: Licensed, yes, but experience varies wildly. If they don’t have strong lender relationships, you’re still rolling dice.
- Bank person: The classic branch rep. Super nice. Can only offer you one bank’s products. If you don’t fit their box, you’re toast.
- Mortgage broker ✅ (the winner): A good Toronto broker has 20+ lenders on speed dial. They know which ones are funding which properties, who’s picky about condos, and who can turn around an approval fast. They’re creative. They troubleshoot. They save deals.
Do I have recommendations for the best mortgage brokers in Toronto for you to get a Toronto mortgage pre-approval? Is the sky blue? Of course I do. DM, text, call, email me.
Bottom Line: Don’t Be Dumb!
If you’re reading this post and you’re thinking about buying in Toronto, here’s your homework:
(1) Interview your real estate agent. Don’t forget to ask them if they have pure, incentive-free Toronto mortgage pre-approval broker recommendations.
(2) Vet the Toronto mortgage pre-approval professionals you talk to with these simple questions: (1) What’s your designation? Are you a mortgage agent level 1, 2 or broker? (2) How many lenders can you access to? (3) How many mortgages did you do last year and this year to date? (4) How long have you been doing this full time?
Just like a Realtor, you need a seasoned, connected, full-time mortgage professional in your corner. Don’t lose the property you want because you trusted the wrong “money person.”