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Turned Down By Your Bank?
Mortgage brokers have access to a number of financial institutions that offer non conforming loans mortgage brokers often refer to these lenders as alternative lenders. These mortgages are designed for clients who don't qualify at the banks due to bruised credit or insufficient income. Alternative lenders primarily offer their products through mortgage brokers and take a common sense approach to lending.
The banking system today relies very heavily on a clients beacon score (credit bureau score) to determine a clients credit worthiness. The problem with using the beacon score however is that so many different factors can bring down a clients credit score that have little or nothing to do with the clients past credit history. These types of situations are the most common form of non conforming loans; low beacon scores.
Another big determining factor when applying for a mortgage is the debt service ratios that the banks (and insurers) have determined to be the maximum a client can service based on the clients income. Non conforming lenders can determine their own guidelines for debt ratios as their loans are not insured by CMHC or Genworth, this means clients who qualify for one mortgage at the bank can qualify for a much larger loan through one of our 'common sense lenders'. The rates are usually not as competitive as those offered by our 'A' lenders, but to many of our clients it could be the difference between purchasing a condo or a house. This is a situation where the best rate mortgage, is not necessarily the best product.
I've even been able to approve mortgage applicants that have been declined by other mortgage brokers. It's important to deal with an experienced mortgage broker.
Don't hesitate to contact us when contemplating your next mortgage. Call 604-764-6336 or toll free 1-888-665-1344.
  
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