Alternative Mortgage Solutions in Ontario | Debt Consolidation Mortgage

Alternative Mortgage Solutions in Ontario | Amansad Financial

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Alternative Mortgage Solutions

Alternative mortgage lenders are often known as “B” Lenders, and they are no longer only a fad. For example, if you look at any newspaper or watch television, you will see that individuals seek assistance through alternative mortgage loans.

Most homeowners had excellent credit and dependable income. However, this seldom occurs in such circumstances these days. In reality, if you have less-than-perfect credit or cannot provide proof of income, you represent the new statistical average. Similarly, if you own real estate and have a household mortgage, your finances are likely to be tight.

If you fall into this group, clearance from one of Canada’s major banks is impossible. Make no mistake, you have very little chance of being authorized by a large bank if you are not the ideal applicant from a credit and income viewpoint.

“B” lenders often accept agreements based on common sense. Consequently, they’re often more concerned with the amount of equity than with your income or credit history.

Loan Types From “B” Mortgage Lenders

Most “B” mortgage lenders will provide the same products as conventional large banks. The majority of alternative lenders in Ontario and other provinces in Canada provide:

  • 1st Mortgages
  • 2nd Mortgages
  • Home Equity Loans
  • Home Equity Lines of Credit (HELOC)
  • Mortgage Refinance and Debt Consolidation

In addition to offering a choice of goods, alternative lenders are also more flexible than banks. For instance, many of these lenders will consider:

  • Stated Income Mortgages
  • Poor or Bad Credit Mortgages
  • CRA Debt Consolidation Mortgages
  • Interest-Only Mortgages
  • Property Tax Loan Mortgages
  • 100% Rental Offset Mortgages

“A” Lenders vs “B” Lenders: How They Vary

Notably, the primary distinction here is the criteria for evaluating applicants. Large financial institutions need impeccableA Lenders vs lenders How They Vary credit and consistent, verifiable revenue. In contrast, “B” Lenders put more focus on the amount of equity you have and use more common sense to underwrite their decisions.

Alternative mortgage lenders are not regulated in the same manner as large banks. Therefore, they may (and often do) make exceptions. In Canada, “B” lender rates are typically somewhat higher. However, these lenders are far more flexible than banks. Specifically, most alternative lenders will ignore most bad credit ratings and be liberal with income requirements.

The federal government’s new mortgage regulations have compelled large bank mortgage lenders to decrease amortizations and limit the number of mortgage loans. Consequently, the new mortgage laws make it more difficult for self-employed borrowers; they also restrict the amount from which a customer may refinance their house.

This has made “B” lenders highly appealing to customers, and homeowners flock to professional mortgage brokers to obtain loans through these lenders.

Mortgage Brokers Are Your Best Bet

It is always in your best interest to hire a mortgage broker to assist with understanding your alternatives. Equally essential, a mortgage broker specializing in alternative financing can assist you in locating the most suitable “B” lenders for your circumstances.

Amansad Financial has worked with alternative mortgage lenders since the concept’s inception. In addition to being synonymous with alternative lenders, we are very familiar with the items they provide. In addition, we have created long-lasting ties which enable us to negotiate the most favourable interest rates and conditions for our customers.

If a conventional lending institution has rejected you because you do not meet their “cookie-cutter” profile, allow us to demonstrate how we can assist you. 

Let us demonstrate the value of our years of expertise by contacting us at (877) 756-1119 or at amansadfinancial.com.