We all know homeowners can obtain mortgage financing with Banks, but are banks the only option in terms of mortgage lenders? Can you still purchase that dream home after a decline from a Bank?
YES, there are more than one option. There are actually 3 different types of mortgage lenders that are available in the Canadian mortgage lending market:
1.) A Lender
The major Banks (RBC, TD, CIBC, Scotiabank, HSBC) and the major credit unions (Vancity, Coast Capital and more) are in this category. They require a decent credit score and substantial reported income to qualify. The stress tests requirement is also the tightest.
2.) B Lender
Trust Companies, Mortgage Finance Companies, and some credit unions. They are not federally regulated, and qualifying criteria is more flexible than A lender. Clients with more complex / non-traditional income sources might benefit from B lenders. The interest rate would be higher than A lender.
3.) C Lender
Private lenders provide mortgages with focus on the property itself other than the borrower. Borrowers with damaged credit or low income can obtain a mortgage from private lenders. There are generally two types of private lenders. First, individuals with substantial capital to loan out as private lenders. Second, private lenders that lend out as part of a group of private lenders, this include Mortgage Investment Corporations, also called MIC.
Amber Financial is a C lender providing lending to mortgage borrowers via Amber MIC, we are also a team of mortgage brokers helping homeowners to find the best mortgage options with A/B/C lenders. Please feel free to reach out to us for all your mortgage needs.
Read more: https://blog.amberfinancial.com/en/rrsp-or-tfsa-which-is-better-for-me/
Read more: https://blog.amberfinancial.com/en/understanding-your-tfsa/