Did the bank refuse your application?

Has the bank refused your application even with high income and down payment? You can still get approved for a private mortgage, loan or refinance. Heres How:

When you apply to a traditional lender for a mortgage, two of the more consistent metrics are a proven income stream and a down payment, but there are still too many Canadians with good income and down payment savings well above 20 percent of the prospective mortgage’s value who are not getting their mortgage applications approved by traditional lenders. Some of this has to do with adherence to mortgage rules that have come into play as a result of the global recession that hit in 2008 and 2009 and turned many mortgages into disasters for banks. However, if you have the income and the down payment to make mortgage payments, you deserve to get access to the funding you need. At Amansad Financial, we help people in your situation gain high-income mortgage approval so that they can move into the houses they have earned.

How does the bank refusal situation arise? 

In many cases, people have gone through situations in the past that have had a serious impact on their credit scores. Maybe they went through a divorce in the past, and there were a number of major loans (car payments, credit cards, even a mortgage) that went into delinquency, and their credit scores took a major hit. Maybe they suffered the loss of a job or a lengthy illness, and they were not able to work for an extended period of time, and they had to max out their credit cards and fell behind on other obligations as well.

Another possibility has to do with starting a business. If you’ve had a successful career and then decide to go out on your own as an entrepreneur, that can be an exciting step in your own life, but it can lead to difficulty when you want to take out a mortgage, because you’ll have a much harder time establishing a proven income stream. The bank will want to see your books and understand how you justify your claims about your own income – and they still might refuse your application, even if your income is high enough, because they might not be as optimistic about your business prospects are you are.

One way to get around these difficulties and get into the home you want is to take out a private loan. There are individuals and businesses that look to invest in the real estate market because it provides more return than government-backed investments but also have more security than the stock and commodity markets. The loans that you can get privately have terms that generally max out at two years but are often renewable if you’ve made your payments on time. Also, there are many private loans that only require interest-only payments during the term, giving you time to stash away more money for a larger down payment so that you can qualify for a traditional loan when the private loan comes to an end.

Want to learn more? Give us a call at Amansad Financial today. We have helped people gain high-income mortgage approval throughout Western Canada, and we look forward to helping you too.

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