When most people think of mortgages, they think of big banks, like TD, RBC, CIBC, BMO, and Scotia Bank. Most consumers will go to their bank and apply for a mortgage pre-approval; soon as they get denied, they give up. These are not the only lenders available for mortgage financing. There are plenty of options from “A” lenders, “B” lenders, Trust Companies, Credit Unions, Private Lenders, etc. So whether you are self-employed, own rental properties, have a low credit score, have too much debt, have a side hustle, or have inadequate employment history, we can find the right solution for you.
The new stress test introduced has made it much harder for individuals to qualify for mortgages. People are starting to worry that they won’t be eligible for a mortgage without co-signers. This is not the case. Alternative lenders tend to have more flexible options. From terms to qualifications, there are more options for individuals. Alternative lenders allow for higher ratios, giving more people the chance of becoming homeowners. Here at Dominion Lending Centres NasaKasa, we know how to make Alternative Lending work for you.
Alternative Lenders are a step up to Private Lenders as they are still regulated. Private Lenders are not required to use the stress test when qualifying individuals for mortgages, so they can qualify people beyond their means. This can cost a lot with much higher interest rates. Private Lenders usually are a stepping stone to get people out of whatever predicament got them needing a private mortgage loan. Their terms are typically shorter than with traditional banks, credit unions, and even alternative lenders. Private mortgages usually have terms in the range of 6 months – 2 years.
The market for Alternative Lending is expanding. Typically people are turned off by the thought of an Alternative Lender, immediately thinking the interest rates will be through the roof. There is, however, some encouraging news on this front. Alternative Lenders now account for about 15% of all mortgages in Canada, which means they’ve had to maintain their interest rates low to be competitive. The downside of Alternative Lending is that they charge a one-time 1% lending fee. The lender fees are charged typically based on risk; the riskier the transaction, the greater the cost of borrowing. The fee also includes the processing fee, the underwriting fee, and some other miscellaneous fees.
We can assist you with a variety of issues. Helping if you’re facing cash flow problems, need financing beyond a bank’s mortgage offer, or need quick financing solutions.
Get a second opinion about your mortgage needs at Dominion Lending Centres NasaKasa – 905-997-7001.