Scenarios
Real cases, not testimonials.
First-Time Home Buyers (FTHB)
Program Key Points
- Down payments starting as low as 5% may be accepted.
- First-time home buyers should strongly consider using available programs such as the First-Time Home Buyer Incentive and tax-advantaged options like the RRSP Home Buyers' Plan.
What Lenders Care About
- Employment stability
- Source of down payment
- Credit history
- Debt-to-income ratios
Common Blockers
- Insufficient down payment
- High debt ratios
- Employment gaps
- Credit issues
How the Platform Evaluates Your File
The platform runs affordability calculations, mortgage stress tests, and identifies specific constraints that could prevent approval.
Self-Employed Income
What Lenders Care About
- Most traditional banks require a minimum of two years of tax returns.
- Income is typically calculated using the average of the last two years.
Common Blockers
- Late income tax or property tax payments (banks have zero tolerance due to federal regulations).
- Significant income fluctuation year over year. If income varies by more than 20%, lenders may only consider the lower year.
How the Platform Evaluates Your File
The platform runs affordability calculations, stress tests, and identifies specific constraints that could prevent approval.
Refinance to Consolidate Debts
Restructure your mortgage to eliminate high-interest ("toxic") debt and improve cash flow. Mortgage debt typically offers: Lower interest rates, Longer amortization periods, Potential long-term property appreciation. If you have $30,000 or more in high-interest debt (credit cards, lines of credit, personal loans, car loans) and your mortgage is up for renewal, refinancing may be a strong option. The primary cost is typically the notary fee.
What Lenders Care About
- Employment stability
- Credit history
- Debt ratios
Common Blockers
- High debt ratios
- Credit issues
- Employment instability
How the Platform Evaluates Your File
The platform runs affordability calculations, stress tests, and identifies specific constraints that could prevent approval.
Alternative Lenders / B Lenders / Virtual Lenders
May accept non-traditional income verification. May accept lower credit scores. Offer programs such as Stated Income, using business bank statements to estimate income.
This is often a strong solution for self-employed borrowers or incorporated professionals who minimize taxable income for tax planning.
Considerations
- Higher interest rates than traditional banks
- Additional lender and file fees may apply
Insured Mortgages (Less Than 20% Down Payment)
Program Key Points
- In addition to bank approval, the mortgage must be approved by one of Canada's three main insurers: Canada Mortgage and Housing Corporation (CMHC), Sagen (formerly Genworth Canada), Canada Guaranty
- The property must be owner-occupied at the time of mortgage activation.
- Insured mortgages apply to purchases only (not refinances).
How the Platform Evaluates Your File
The platform runs affordability calculations, stress tests, and identifies specific constraints that could prevent approval.
Commercial Mortgages
Key Points
- Lenders focus heavily on property cash flow performance.
- Minimum down payment typically 20% or higher depending on risk ratios.
- Commercial rates are generally 1.5% – 2% higher than residential rates.
- Lender and broker fees typically range from 1% – 2% of the loan amount.
Private Lenders
Typically groups or companies lending funds secured by real estate. Strongly recommended to work with established private lending companies, not individuals.
Most private lenders use 1-year terms, though some may demand repayment earlier depending on contract terms.
Important Considerations
- Very high interest rates and fees
- Property is used as collateral
- Lenders can take aggressive legal action if payments are missed
Key Points
- Best used: As a last resort, For smaller loan amounts, When a clear exit strategy exists
New to Canada, Temporary Residents, Non-Residents
Program guidelines change frequently, so each file must be reviewed individually.
Key Points
- Work permits should typically remain valid at least 183 days after mortgage activation.
- If Canadian credit history is limited, lenders may accept: Foreign credit reports, 6–12 months of Canadian banking or credit history.
Recommendation
Direct consultation is strongly recommended for this program.
Purchase + Renovations
Finance both purchase and renovations in one transaction.
Program Key Points
- Renovations must be cosmetic or value-improving, not structural.
- Major structural issues may result in property rejection.
- Renovation funds are released progressively under bank supervision.
- Renovations must typically be completed within 6–12 months.
How the Platform Evaluates Your File
The platform runs affordability calculations, stress tests, and identifies specific constraints that could prevent approval.
Reverse Mortgages
A mortgage option for homeowners aged 55+, allowing you to borrow against home equity without monthly payments. Repayment typically occurs when the home is sold, vacated, or upon death.
Key Points
- Higher interest rates than standard mortgages
- Qualification primarily based on age and home equity
- Highly regulated in Canada to protect seniors
Recommendation
Direct consultation is recommended due to program complexity.
Net Worth Program
Typically offered by major banks for high-net-worth clients with strong assets but limited qualifying income.
Example: $500,000 mortgage → $500,000 in liquid assets required.
Key Requirements
- Clients must typically demonstrate liquid assets matching the mortgage amount (1:1 ratio).