Alternative Mortgage Financing

Why Consider an Alternative Lender?

Remember when you could walk into a major bank and walk out with an approved mortgage? Not that easy anymore!  The new “stress test” rules are making it harder for most Canadians to qualify for a mortgage loan with a major bank.

If you answer “yes” to any of the questions below, you may be better suited for an Alternative Lender.

Credit Challenges?

•Do you have limited credit history? (Less than < 1 year)

• Do you have bruised or damaged credit? (Credit Score < 550)

•Have you declared bankruptcy or filed a consumer proposal?

Income Challenges?

•Are you self-employed or claim a low income on your annual tax return?

•Is your income solely cash or commission based?

•Are you employed and not able to secure the entire mortgage loan amount from a traditional bank?

Cash Flow Challenges?

•Do you need to consolidate high interest credit-card debts?

•Do you need a quick secured line of credit for renovations, debt consolidation, vacations, education or other financial obligations?

Properties Challenges?

•Are you an investor looking to finance multiple properties?

•Does your property have a commercial component?

•Does your property need fixing up?

What is an Alternative Lender?

An Alternative Lender can provide a lifeline for Canadians who have run out of other financing options. Also known as Sub-prime or B-Lenders, Alternative Lenders are non-conventional, but regulated financial institutions that offer a lower barrier of entry to qualifying for the mortgage loans.  Once the borrower’s circumstances have improved and they are better able to meet tougher qualification requirements they can secure new financing from more traditional long-term banking sources.

Quick Facts about Alternative Lending

  • Higher Approval Rates: Alternative lenders offer more lenient qualification requirements
  • Shorter Loan Terms: Alternative lending is typically short-term ranging from 1 to 3 years
  • Faster Funding Process: The technology used by alternative lenders enables a quicker funding process (as quick as 48 hours)
  • Rates: You can expect about 1% to 2% higher rates than traditional A lenders
  • Additional Fees: You may pay a fee of 1% to 2%.

How Everything Mortgages Can Help?

At Everything Mortgages, it IS as easy as walking in and walking out with an approved mortgage! We work with established and reputable Alternative Lenders to help you qualify for the best rate mortgage loan that is customized to your financing needs. Our mortgage specialists are resourceful and innovative in their approach to delivering fast access to mortgage loans even in the most challenging of cases.