At CMFG we are always exploring alternative options for our clients and keeping up with market and lending criteria changes. We had to find a solution in this crazy era of brokering for our good clients that cannot qualify for a mortgage! We have an alternative lending option with 40 years amortization up to 85% of property value (LTV).
With CMHC insurer guideline and major banks, any down payment less than 20%, you must qualify at 25-year amortization and your credit must be good plus there are several lending restrictions. Even when a client has 20% down-payment in some cases, they still cannot qualify especially if they have challenged credit, they are self-employed, hasn’t been on their job for a long time OR their ratios are off.
We understand clients and our brokers wonder about rates and fees associated with alternative lending options. On first mortgages, approximate rates are 3.75 to 4.99% and 9 to 11.99% on seconds (Subject to change without notice). Lending fee depends on the deal but approximately 2.50% on a first and up to 4% on seconds. Again loan amount is up to 85% LTV.
- The GREAT news is that the lending fee is capped on the mortgage so you don’t need to pay up front. It’s just like having CMHC premium but CMHC premium is MUCH higher and you’re lucky to be qualified these days.
Stop worrying about how you’ll qualify your challenged credit clients or clients with good credit but they are self-employed or those with only 15% down payment who cannot qualify with A or B Lenders or those who own several properties and ratios are off on the traditional lending options.
EMAIL your request/ package to Ameera@cmfg.ca and copy Linda@cmfg.ca or call 6474949885 ext 107 to discuss your options and requirements.