905.537.8815 FSCO No. 10420
Banks and "A" Lenders pay us for your residential service. EXCEPT bad credit mortgages, some self employed mortgages from "B Lenders", private mortgages or multi-use and commercial loans - broker fees are payable by clients. Lenders change their products and interest rates without notice.
..... follow me to get mortgage updates ... Marie Copeland @AxcessMortgage
Who is Alternative Mortgage Financing for?
Note: Alternative mortgage lenders rely heavily on the quality of your property and the area. They will not lend in small towns under 35,000 people, run down neighborhoods with nearby commercial areas and property values under about $250,000. No central Hamilton areas below the Barton Street. How much money you'll get depends on your credit, income and property and area. Maximum 65% of property value in rural areas with well and septic.
If you've been going from bank to bank wasting your valuable time just to be turned down for a mortgage, we can help. Let's start by understanding that mortgages can fit into one of three main lending categories: "A" Lenders, Alternative Lenders or Private Lenders.
Who are "A" lenders? ... Banks, Credit Unions, Mortgage Companies and Insurance Companies. They all have similar lending requirements: good credit and stable income. You'll get your mortgage at best market interest rates up to 95% of purchase price to buy your owner occupied home and to 80% to buy a rental property.
You can also refinance your owner occupied home equity mortgage to 75-80% of value depending on the application details and property quality, type and location (rentals up to 75%) -- ideal for debt consolidation or cashing out some tax free home equity to use the money as you need.
But, if you've been turned down by one bank, going to other banks will not help as they all use similar government regulated qualifying criteria. Each lender you go to will pull your credit and the next thing you know, your credit score drops even lower making your situation worse. This is where you need to stop and get professional mortgage help.
Alternative Mortgage Financing or "B" lenders are for you if you don't fit "A" financing and you're not quite bankable for whatever reason. You may have credit problems, be short on income for the mortgage amount needed or you're self employed and cannot prove income on your tax returns under any CMHC/Genworth insured mortgages.
If your earnings are business for self, the "A" lenders want to use two year's average of your self employment income as stated on line 150 of your CRA Notice of Assessment. Alternative lenders on the other hand may use six months history of your business bank deposits and invoices to establish your annual earnings.
The interest rate charged and the amount of mortgage alternative mortgage lender will give you depends on the strength of your overall application, credit, area and marketability of your property.
For example, if your property is rural on well and septic, you may only get 65% of property value. But, if the location and quality of the property is attractive, you may get as much as 80%.
Alternative mortgage lenders assess each application on it's own merit and the interest rate is a bit higher than with "A" lenders and they will charge a lender fee (either separately or built into a higher rate). But, some will allow a second private mortgage or a vendor take back up to 95% of property value if you need extra money -- the first 5% has to come from your own savings, gift from immediate family member or existing equity.
While mortgage brokers are paid for their service by banks and "A" lenders, in most cases we charge a fee to clients for alternative B lender mortgages or private lenders. The fee depends on the scope and difficulty of getting you a mortgage and you can discuss this with us.
Private lender funds, sometimes called hard money go beyond the banks and alternative money lenders. Private mortgage lenders step in when everyone else has turned you down. Provided you have enough equity in your property, these lenders can to be more flexible and creative and get you money fast.
While this type of money is more expensive, it offers unique short term solutions intended to resolve a difficult financial problem.
Marie Copeland, FSU, helping you with all your mortgage needs.
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