With the constant evolution of technology and the growing popularity of online applications, it seems that paperless mortgage is the future of mortgage applications in Canada. In the past, a typical mortgage application involved many documents being filled out and submitted in person. However, with today’s technology, more and more mortgage applications are being conducted online. Have you ever heard about the digital mortgage?
What is Digital Mortgage?
A digital mortgage is a modern alternative to a traditional mortgage. Instead of filling out paperwork, borrowers submit everything electronically. Paperwork is processed using a digital mortgage software system. Mortgage lenders will scan, store, and transmit a borrower’s application through an Internet connection. Digital mortgage software is designed to speed up the application process, making it more convenient for borrowers and lenders alike. With a digital mortgage, you obtain a mortgage electronically, rather than by making paper copies and sending them to the lender, and you can get a mortgage without a face-to-face meeting with the mortgage company.
In recent years, many lenders have begun offering digital mortgages to borrowers who meet their qualifications. Digital mortgages allow borrowers to borrow money online, often through mobile and web applications. Digital mortgages offer borrowers access to a streamlined application process and a faster approval process. Before applying for a digital mortgage, borrowers should check whether their lender offers this option by visiting the lender’s website or calling the lender to inquire.
Digital Mortgage and Its Importance to Lending
Mortgages are sometimes complicated. In fact, for most home buyers, the buying process can seem like a maze of paperwork, a dizzying number of choices, and a confused mass of jargon. Traditional mortgages involve paper documents, phone calls, and face-to-face meetings. But digital mortgages make things simpler by creating and tracking all your documents and digital mortgage information in one place. The borrower and lender both have access to everything they need to make the right decisions.
Digital mortgages are a relatively new concept in residential lending in Canada. The Bank of Montreal has led the way by implementing a fully digital process for its mortgage lending business. Digital mortgages offer borrowers and mortgage advisors in Langley, BC a more convenient, faster, and more efficient mortgage application process.
Another reason why Digital Mortgage is vital in lending is that it brings various benefits to lenders. These are:
- It’s easy to underestimate just how huge the digital mortgage trend is, especially when you compare it to the traditional home mortgage, which has undergone considerable changes over the years. The digital mortgage process has come a long way since the early days of the internet when online mortgage services were only available to those who had access to a high-speed connection. Today, digital mortgages are available to anyone who can access the internet, even people who would otherwise have a hard time entering a physical bank branch. And the digital mortgage process is more efficient than ever. Revoking and modifying loans has been a difficult, time-consuming, and costly process. But migrating to a digital mortgage can make loan modifications and cancellations easier to manage and more efficient. A digital mortgage allows lenders to communicate more efficiently with borrowers.
- Revoking and modifying loans has been a difficult, time-consuming, and costly process. But migrating to a digital mortgage can make loan modifications and cancellations easier to manage and more efficient. A digital mortgage allows lenders to communicate more efficiently with borrowers.
- It assists you at the same time with compliance. Conventional mortgage lenders have long relied on physical documents to manage mortgage applications, underwriting, and closing. However, as consumers embrace digital technology, this traditional approach doesn’t adequately meet the needs of consumers looking for a better experience. The digital mortgage process not only improves the customer experience but also allows lenders to achieve positive business outcomes. It’s certainly no surprise that homeowners are using digital mortgage apps, with more than 60 percent of recent home buyers using them when shopping for a mortgage.
- It helps you when it comes to verification. With a digital mortgage, lenders are not only offering convenience in the application process by paying the borrower electronically but also providing consumers with choices in how their mortgage is processed. Mortgage lenders can charge consumers upfront at the time of closing or opt to pay consumers on an installment basis. Some lenders offer the option to pay in a single lump-sum payment, while others offer the option to pay in installments over time. Lenders can also offer consumers the option to pay their mortgage electronically via wire transfer.
- Interviewing borrowers is made easy. In the modern age of technology, lenders are able to streamline their process by using a digital mortgage. This enables lenders to do many tasks that previously took hours or days to perform in just minutes. This saves both time and money. Additionally, a digital mortgage allows lenders to better assist clients by providing them with more personalized offers. A digital mortgage process also enables clients to sign documents electronically, which reduces the number of paper lenders use, saving on printer ink and paper.
- Meets borrower’s expectations. Borrower expectations have never been higher. Consumer preferences have shifted to mobile-first, digital-first and omnichannel experiences. And yet, most lenders are still working to meet the digital expectations of their borrowers. With digital mortgages, lenders can meet consumers where they are. 81% of borrowers have searched for a mortgage online. 38% of borrowers had a mortgage application submitted on a mobile device. 23% of consumers use their smartphones as a lender’s customer service line.
The lending industry is evolving rapidly, and lenders that offer their borrowers digital mortgage options will quickly see the benefits of doing so. From increased customer satisfaction to faster application closing, digital mortgage offers plenty of benefits that traditional paper methods simply can’t match, and consumers stand to benefit as well.
Are There Any Disadvantages Concerning Digital Mortgage?
A digital mortgage, or e-Mortgage, is a home loan that’s processed entirely electronically. There’s no paper involved, and the mortgage lender records all details electronically, so there are no hard copies to sign. This is convenient since it means you won’t have to wait for any documents to arrive in the mail or to deal with a fax machine. However, there are disadvantages related to this kind of mortgage.
As a digital mortgage broker, you work independently without a lot of supervision. This independence can be a big plus when it comes to your personal life, but the lack of control can also work against you financially. Most mortgage brokerage firms pay their brokers in commission, which means that the more loans you close, the more money you can make. The larger firms typically get more leads and are more likely to close loans, which means that they may have more business for you.
Can We Expect More from Digital Mortgage in The Near Future?
The mortgage industry in Canada is far from digital compared to other industrialized countries, good examples of this are companies like MortgagesLab that keeps up with the latest technologies. Yet, technology has tremendous potential to change and improve the mortgage industry. This means that the industry’s current and future relationship with technology is of strategic importance.
Canadian mortgages are set to change significantly in the next few months as lenders, and real estate experts gear up for the implementation of the Digital Mortgage Platform (DMP). The DMP will essentially serve as a master account where lenders and borrowers store and manage all information related to the mortgage transaction.
The digital mortgage is a recent innovation that revolutionized Canadians’ home purchase process. By collecting all the documents digitally, the mortgage process became faster and more convenient. Now, the Canadian lender Mortgage Intelligence is introducing a digital mortgage that allows you to do the closing remotely while saving money and simplifying the process.