Explore your options with
because mortgages are not one-size-fits-all.
When traditional mortgage options don’t quite fit your unique circumstances, don’t worry—I’m here to help! Alternative financing can open doors for homeownership or refinancing that you might not have thought possible.
Whether you're facing non-traditional income, credit challenges, or unique property situations, I’ll work with you to find innovative solutions that align with your goals. Let's uncover the right path to achieve your property dreams!
Types of Alternative Financing
when the traditional options aren't the right fit.
Alternative Mortgages
If you find yourself in a position where the Banks say no, Alternative lenders (also commonly called "B" lenders), may have some great options to offer.
With more flexibility than traditional Banks as it relates to credit rating, debt ratios and income - my Alternative lending partners bridge an important need for borrowers who have significant home equity or larger down payments available but still don't quite fit the traditional Bank guidelines.
Private Mortgages
Offered by private lenders, these mortgages can be an excellent option for borrowers who may not meet the criteria of conventional lenders and need a temporary mortgage solution to achieve the next milestone in their goals. Private lenders often have more lenient requirements, making it easier to secure financing based on your unique circumstances.
Sometimes traditional lenders like the big banks just aren’t the right fit for your mortgage needs.
If your situation doesn’t fit into the standard mold, it doesn’t always mean you’re out of options—it often just means we need a different approach to get it done.
Here are a few examples of scenarios where alternative financing might be the answer:
Credit Challenges: If you’ve gone through a bankruptcy, consumer proposal, or have a high debt load impacting your credit score, traditional banks may turn you away. Alternative lenders can be more understanding of your situation.
Self-Employed or Non-Traditional Income: Traditional lenders have strict rules around income verification that don’t always work for the self-employed or those with non-standard income sources. Alternative lenders are more flexible in looking at your overall financial picture.
High Debt Ratios: If your debt ratios (GDS/TDS) are higher than what the banks allow, it can be tough to qualify. In these cases, alternative lenders are often willing to work with you to find a solution.
Unique or Incomplete Property Builds: Properties that don’t meet strict bank criteria—like incomplete builds or reno projects—are often turned down for traditional financing. Private lenders, on the other hand, are more willing to consider providing financing to complete these types of projects.
Second Mortgages: If you’re looking to tap into your home equity but your existing mortgage or credit situation makes it hard to get a bank-approved second mortgage, an alternative lender can provide options for accessing your equity.
Alternative financing usually comes with higher down payment or equity requirements to balance the increased risk for the lender.
It’s also important to know that these solutions often have higher interest rates and lender fees, making them more expensive overall.
Because of these costs, many people use alternative financing as a temporary solution—helping them get into the market or access funds while they work on improving their financial situation and eventually transition back to traditional financing.
If you’re in one of these situations and need help exploring your options, let’s chat and see what’s possible!
Your questions answered.
An alternative mortgage is a solution for folks who don’t fit the typical bank requirements—whether it’s due to credit issues, non-traditional income, or unique property types. The main difference is that alternative lenders are more flexible with their criteria but often have higher rates and fees to balance the risk.
Yes, there are several mortgage products tailored for self-employed borrowers, including stated income mortgages and those that allow for alternative income verification. Together, we can identify the best product that suits your needs.
Generally, you’ll need to provide documentation such as tax returns, bank statements, profit-loss statements, and possibly a business license. I’ll guide you through the necessary paperwork to make the process as smooth as possible.
Generally, you’ll need a larger down payment—usually 25% or more—or equivalent equity in the property.
Alternative and private lenders are more flexible with credit score requirements, and have products that are tailor made for borrowers who are repairing their credit. Even if your score has taken a hit, there may still be viable options available to you.
Sometimes the banks say no, but you still need financing. Maybe you’re self-employed, rebuilding your credit, or looking to finance a unique property. An alternative mortgage lets you access funds when you need them, even if your situation isn’t ideal.
Rates are typically higher than traditional mortgages because of the added risk. The exact rate depends on your specific situation, but you should expect to pay more compared to what the banks offer.
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