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By Fred Knowles, Your Mortgage Specialist

There was a time not so long ago when banks and lenders used a common-sense approach to approve financing for qualified buyers. We’re now in a time where people who would easily qualify just a few years ago are now being forced out of the market or having to turn to alternative financing. To me, it’s very strange that the “big banks” don’t offer alternative financing options. Since the TD’s and RBC’s of the world do not offer these options, many people aren’t aware that there may in fact be a great option available to them.

Many banks we work with through the broker channel are equipped with their standard “A” mortgage product, but also offer great options for people who don’t fit the current criteria for approval. Considering an alternative mortgage can be extremely beneficial in certain situations and can turn a “no” into a “yes” while still obtaining a very reasonable rate. Here are the most common instances I’ve come across for recommending this option:

Self Employed

  • Ability to use gross income verified by deposits to qualify
  • 100% commission income considered
  • Financing for unique professions such as AirBnB owners, Uber drivers, Professional Landlords

Bruised Credit

  • Low credit due to life event
  • Hight balances on accounts
  • Bankruptcy/Consumer Proposal showing on bureau

As we enter an era of a growing field of entrepreneurs and traditional banks lagging in their qualifying guidelines, this is a great opportunity to chat with a mortgage professional and review all available options.

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