A DESCRIPTIVE ANALYSIS OF THE ROLE OF MORTGAGE PLANNING IN QUICK SALE OF RESIDENTIAL PROPERTIES IN THE CITY OF BRAMPTON, CANADA

The research article describes the role of mortgage planning in sale of residential properties in the city of Brampton, Canada. Mortgage financing is an essential part of real estate buying & selling process in Canada where a number of people rely on mortgage loans to purchase houses. The need of housing is rapidly increasing but still a large quantity of listed properties is left UNSOLD in the real estate market despite of buyers demand. At the same time, the ratio of mortgage decline is also increasing and buyers cannot make a purchase without having the required funds. The paper examines the 07 years data from 2011 to 2017 and attempts to explain the function of mortgage planning in smooth sale of real estate. Some people pursue to get a pre-approval of mortgage from lenders before searching for properties because it gives an idea about the borrowing capacity of buyers. The paper investigates the percentage of buyers who purchase houses with a pre-approval of mortgage, the gender of buyers, the percentage of co-signers in the mortgage applications and the percentage of bargain on listed pricing, and also an analytical review on duration of time for marketing the listed properties and closing the transaction of sale. The paper relies on Asymmetric Information Theory which states that imperfect knowledge of information restricts the smooth or quicker sale of products in the markets.