As the cost of a home continues to rise, securing a mortgage through one of the major banks is becoming more and more difficult. Individuals who are self-employed, have limited borrowing history, or are newcomers to Canada have an even harder time getting approved.
According to Kash Toor, CEO of Mortgage Partners Corporation, his team is able to help many people who were previously denied funding to secure loans. “Since we are fully independent, we have access to a variety of alternative lenders including Mortgage Investment Corporations (MICs), credit unions, and private lenders,” he explains.
Reasons Major Banks Deny Funding
Major banks use strict parameters for approving mortgages and there may be any number of reasons that someone is denied funding. It can be more difficult for people who have alternative income sources, like self-employed individuals, freelancers, contractors, and business owners, to secure a loan. Other factors may include a less-than-perfect credit history or a lack of credit history, a low credit score, or they are a first-time homebuyer.
Canada’s federal banking regulator also requires major banks to follow tight mortgage stress test rules. These rules require borrowers to prove that they can afford a mortgage at predetermined rate, which often results in difficulties for many potential home buyers.
“The major banking institutions remain stringent in their underwriting,” says Kash. “Luckily, at Mortgage Partners, we have alternative solutions and have access to many options for our clients.”
Brokers Have Access to Alternative Lenders
Kash’s team of mortgage brokers have access to a wide variety of lenders outside of the major banks. These lenders often require different proof of employment, income, and credit history than traditional lenders do.
“We have a wide array of avenues for self-employed applicants and others who have had difficulties securing a mortgage in the past. Some of our lending partners use only bank statements and do not require documents such as personal notice of assessments or T1 Generals,” says Kash.
Kash recommends that anyone who has been denied a mortgage by a major bank speak with one of the brokers at Mortgage Partners. Not only can his team offer alternative solutions, but they can offer bridge loans that help to fund a deposit and provide fast turnaround times. “We love to serve our clients and we take on the toughest tasks,” he says.
Mortgage Partners Corporation serves South Simcoe, Vaughan, New Market, Richmond Hill, North York, and the GTA. To find out more about how Kash and his team can help you, call them at 1-800-571-4996 or visit them online.