Having trouble getting approved or for the mortgage amount you require?

Traditionally, mortgage lenders have a set of guidelines that they follow in order to qualify the borrower. Their decision on whether an applicant qualifies or not, and for what amount, is based on a pre-determined set of criteria such as income level, employment stability, debt service ratios, credit history, etc. Many in the industry call this "fitting the application inside the box". This type of lending has however disqualified many worthwhile applicants, or has had their mortgage amounts reduced, because their application is "outside the box". Prime examples of this would be self-employed applicants or borrowers with good saving habits but lower incomes.

Fortunately, we now have lenders who are willing to look beyond the box in order to approve quality applications. We call this equity financing.

What is equity financing?

Equity financing uses qualifications that are more weighted to how much equity you have in the property. A much lower emphasis is used on what your income or debt service ratios are like. Some people refer to this type of lending as "little or no questions asked lending". There are a number of lenders in the Canadian marketplace now that do this type of lending. Some need little or no income confirmation for an approval. This comes in handy for those who are self-employed or have lower incomes but excellent savings. Typically, this kind of lending is available when the applicant has 25% or more of the property value to put down or invested.

What kind of rates and costs can I expect?

Consultation with one of our Mortgage Specialist is absolutely free. They have in-depth knowledge of the mortgage market and it's products. They can help with your application.

Typically, the rates for equity lending are at bank posted rates. However, with ever increasing competition in this segment of lending, there have been instances where the rates have been discounted off bank posted rates.

Costs would include what you would normally pay to take out a mortgage - legal fees, appraisal, survey certificate, etc. Some lenders do charge a nominal lender's fee.

For many applications, our services are at no cost to you. The lender will be paying us a finder's fee for bringing them a new client.