Applying for a mortgage can feel overwhelming, especially when your financial situation doesn't fit the traditional mould.
Whether you're self-employed, have a challenging credit history, rely on non-traditional income, or are new to Canada without established credit, there are flexible mortgage solutions designed to help you achieve or maintain homeownership.
Many borrowers are uncertain about their options, but alternative mortgage products can serve as a stepping stone to owning or staying in your home.
Who Can Benefit from Alternative Mortgages?
Alternative mortgage solutions are tailored for those who don’t meet the typical lending criteria. This includes self-employed individuals, those with limited credit history, or people who’ve experienced financial challenges. The beauty of alternative mortgages is their flexibility, allowing lenders to provide custom solutions that traditional lenders may not offer.
Self-Employed Borrowers
If you’re self-employed, proving your income to traditional lenders can be difficult, as they often rely on tax documents and steady taxable income. Alternative lenders understand the unique nature of self-employment income and are open to considering bank deposits, contracts, or invoices, making it possible to secure financing even if your taxable income varies or is lower.
Credit-Challenged Borrowers
For those who have had credit issues—such as missed payments, high balances, or bankruptcy—alternative mortgage solutions can be a lifeline. While the rates may be higher initially, these products can help rebuild your credit. Many borrowers use alternative mortgages as a temporary measure, transitioning to lower-rate conventional mortgages once their credit improves.
Borrowers with Non-Traditional Income
Freelancers, part-time workers, and gig economy employees may struggle to qualify for traditional mortgages. Alternative lenders, however, are more accommodating, considering income from various sources, like contracts, employer letters, or bank deposits. This opens the door to homeownership, even with an unpredictable income stream.
New Immigrants
New immigrants often face difficulties securing traditional mortgages due to a lack of Canadian credit history. Even with stable employment and finances, it can be challenging. However, alternative lenders can offer customized solutions based on international credit reports, employment offers, or other financial assets, helping new Canadians enter the housing market more smoothly.
Your Path Forward
If a traditional mortgage seems out of reach, don’t lose hope. Alternative mortgages can be a powerful tool to help you achieve your financial goals, whether it’s purchasing your first home, refinancing, or staying in your current property. These products can enhance your financial standing and set you up for conventional lending options in the future.
Let’s explore your options together. We know every borrower’s situation is unique, and we’re committed to finding the right solution for you. Give us a call today to discuss alternative mortgage solutions and take the next step toward homeownership or financial stability.