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When most people think about getting a mortgage, they think about going to a bank. But what happens when the bank says no — even though you earn good money, have equity, and make your payments on time?

That’s where alternative and private lending comes in.

At Mainstream Mortgages, we help clients understand that a bank decline is not the end of the road. In many cases, it’s simply a sign that you don’t fit a rigid lending box — not that you’re a bad borrower.

What Is Alternative and Private Lending?

Traditional banks use very strict formulas to approve mortgages. They rely heavily on credit scores, income documents, and standard employment. If anything falls outside their box, they often say no — even if you can clearly afford the mortgage.

Alternative and private lenders work differently. They look at the full picture:

• Your property value

• Your equity

• Your overall financial story

• Your plan going forward

Instead of only asking “Do you fit our box?”, they ask “Does this make sense?”

That flexibility is what allows many Canadians to buy, refinance, or keep their homes when banks won’t help.

Who Uses Alternative or Private Mortgages?

Contrary to popular belief, alternative lending is not just for people in financial trouble. Many successful and responsible borrowers use these programs, including:

• Self-employed business owners

• Commission-based or seasonal workers

• Real estate investors

• New Canadians

• People going through separation or divorce

• Borrowers rebuilding credit

• People with complex tax or income structures

These borrowers may have money and assets — they just don’t always look “perfect” on a bank’s checklist.

Why Banks Say No (Even When You Can Afford It)

Banks don’t just assess whether you can pay — they assess whether you fit their risk model. That means things like:

• Income that fluctuates

• Write-offs on tax returns

• Recent life changes

• Credit history that’s improving but not perfect

• Rental or investment properties

Any one of these can trigger a decline, even when the mortgage is easily affordable.

Alternative lenders step in when the story matters more than the spreadsheet.

Are Alternative and Private Mortgages Bad?

Not at all — when used properly.

Yes, the interest rate is usually higher. Sometimes there are lender or broker fees. But what many people miss is the bigger picture:

A higher-rate mortgage for a short period can:

• Prevent forced home sales

• Allow time to repair credit

• Let income stabilize

• Unlock equity

• Create a path back to lower rates

The goal is not to stay in alternative lending forever. The goal is to use it as a bridge to something better.

How Mortgage Brokers Protect You

This is where working with a brokerage like Mainstream Mortgages matters.

We don’t just place you in a mortgage — we:

• Compare multiple alternative and private lenders

• Negotiate rates and terms

• Make sure fees are transparent

• Build an exit strategy back to better financing

You should never be “stuck” in a high-rate mortgage without a plan. We make sure there is always a roadmap forward.

When Is Alternative or Private Lending the Smartest Choice?

Sometimes the smartest move isn’t the cheapest rate — it’s the option that gives you the most control.

Alternative and private lending can be the right choice when:

• You need time to improve credit

• You’re restructuring finances

• You’re self-employed and growing

• You’re buying or refinancing in a complex situation

Used correctly, these mortgages are not a last resort — they are a strategic tool.

Final Thoughts

If you’ve been declined by a bank, don’t assume you’re out of options.

At Mainstream Mortgages, we specialize in finding solutions that make sense for real people, real incomes, and real life — not just computer models.

💬 We’d Love To Be Your Mortgage Brokers.

Understanding New to Canada Mortgage Programs

Moving to Canada is an exciting milestone, and for many newcomers, homeownership is a top priority. However, navigating the mortgage options available for those new to the country can be complex. At Dominion Lending Centres Mainstream Mortgages, we’re here to simplify the process and help you find the right mortgage solution to suit your unique needs. Here’s everything you need to know about New to Canada mortgage programs.

Who Qualifies for New to Canada Mortgage Programs?

New to Canada mortgage programs are designed for individuals who have immigrated to Canada within the last 60 months. Both insured and conventional mortgage options are available to help you achieve homeownership:

• Insured Mortgages: For those with less than 20% down payment.
• Conventional Mortgages: For those with 20-35% down payment.

Let’s break down these options.

Insured Mortgage Options

To qualify for an insured mortgage, applicants must:

• Be permanent residents or temporary residents with a valid work permit.
• Have immigrated to Canada within the last 60 months.
• Include all foreign debts in the total debt servicing (TDS) ratio.

Key Requirements:

• Down Payment:
  • 5% down payment from personal resources or as a gift from an immediate relative.
  • Funds must be in a Canadian bank account for at least 90 days (exceptions may apply).
• Employment Verification:
  • Full-time permanent employment for a minimum of 3 months.
  • Provide an employment letter confirming start date, position, salary, and hours worked, along with two recent paystubs.
• Credit History:
  • For 90.01%-95% Loan-to-Value (LTV), borrowers from the US or UK need a strong credit bureau report. Alternatively, provide 12 months of timely payments for rental, utilities, or other recurring bills.
  • For up to 90% LTV, borrowers must provide six months of bank statements or a reference letter from their financial institution.

Conventional Mortgage Options

For borrowers with 20%-35% down payment, conventional mortgage programs are available. These programs require a solid financial profile, including:

• 20% Down Payment:
  • A full financial picture, including savings habits, debt load, and the source of funds.
  • Disclosure of all foreign obligations.
• 35% Down Payment:
  • Access to the Equity Offset Program, which allows borrowers to qualify for a larger mortgage amount by showing 12 months of Principal, Interest, Taxes, and Heating (PITH) in liquid assets.

Specialized Mortgage Programs

• High Net Worth Program:
  • For borrowers with significant assets. Requires a minimum of $250,000 in liquid assets on deposit in Canada.
  • Ideal for individuals whose income comes primarily from assets rather than traditional employment.
• Future Income Program:
  • For permanent residents with a minimum credit score of 680.
  • Allows borrowers to qualify for higher mortgage amounts by demonstrating future income potential and net worth.
  • Maximum mortgage amounts: $2.5M (joint borrowers) or $1.75M (single borrower).
  • Up to two properties and 30-year amortization are permitted.

Start Your Homeownership Journey Today

At Dominion Lending Centres Mainstream Mortgages, we’re committed to helping newcomers navigate the mortgage process with confidence. Whether you’re exploring insured or conventional options, our team is here to guide you every step of the way.

Ready to learn more about your options? Contact us today, and let’s get you one step closer to owning your dream home in Canada.

The economic landscape is shifting, and with the new Trump Administration in the United States, there is speculation about how potential policies and global trade adjustments could impact Canada. Economists and financial analysts are voicing concerns about the possibility of economic challenges ahead, including employment uncertainty. While we can’t predict the future, one thing is clear: preparation is key.

Refinancing Your Mortgage: A Strategic Financial Move

If you’re a homeowner, now might be the perfect time to consider refinancing your mortgage. Refinancing can help you safeguard your finances and weather potential economic turbulence. Here’s how:

1. Consolidate High-Interest Debt & Improve Cash Flow: High-interest consumer debt, like credit cards, can be a heavy burden. By refinancing your mortgage, you can access your home’s equity to pay off these debts. This simplifies your finances by consolidating multiple payments into one lower-interest payment, saving you money in the long run.
2. Strengthen Your Savings: Refinancing can allow you to lower your monthly mortgage payments, freeing up cash flow to build an emergency fund. A healthy savings account provides peace of mind and a financial cushion in case of unexpected expenses or job loss.
3. Lock in Stability: With interest rates still relatively low, refinancing allows you to secure a fixed rate, protecting you from future rate increases. A stable and predictable payment can make budgeting easier, especially in uncertain times.
4. Invest in Your Future: By restructuring your mortgage, you might free up cash to invest in other opportunities, such as education, home improvements, or even starting a small business. These investments can help you adapt and thrive, even in a challenging economy.

Is Refinancing Right for You?

While refinancing has many benefits, it’s not a one-size-fits-all solution. Factors like your current mortgage terms, the value of your home, and your long-term financial goals all play a role in determining whether refinancing is the best move.

At Dominion Lending Centres Mainstream Mortgages, we’re here to guide you through the process. Our team of experts will help you assess your options, calculate potential savings, and create a refinancing strategy tailored to your needs.

Prepare for the Future – Start Today

The best time to strengthen your financial position is before challenges arise. Refinancing your mortgage now can help you face the future with confidence, no matter what lies ahead.

If you’re ready to explore your refinancing options, contact us today. Let’s create a plan that works for you and your family.

Submitting a strong credit or mortgage application is essential to securing the best terms and rates and making the mortgage process quick and seamless. Lenders want to see a clear financial picture that demonstrates your ability to repay the loan.  It’s also important to apply with correct personal information (marital status, address history, and citizenship status).

Here’s what you need to make a solid application:

✅ Acceptable Credit History & Score

• Aim for a credit score of 680+ for the best rates and terms.  For insured mortgages (less than 20% down) 600 is the minimum credit score.  If a borrower’s credit score is lower than 600, a down payment of 20% or more will be required.
• Pay bills on time, reduce credit card balances, and avoid multiple credit inquiries before applying.
• Avoid missed payments, collections, or defaults on your credit report.
• We will review your credit report before applying and address any errors.

📋 Stable Employment and Income

• Show consistent employment history (ideally 2+ years in the same field).
• Provide proof of income, such as pay stubs, T4s, or  Tax Returns & Notices of Assessment for self-employed individuals.
• Canada Child Benefit can be used for income for children under 15.
• Work Pensions, Canada Pension Plan (CPP), & Old Age Security (OAS) can be used as income.

💳 Low Debt-to-Income Ratio

• Lenders prefer a debt-to-income ratio or Total Debt Service Ratio(TDSR) of under 44%, meaning your housing and monthly debt payments should be less than 44% of your gross monthly income.
• Pay down existing debt before applying to improve your DTI.

💰 Down Payment

• A larger down payment shows financial stability and reduces the lender’s risk.
• The minimum down payment in Canada is 5% for homes under $500,000 and 10% for the portion above $500,000.
• Canada’s Anti Money Laundering legislation (AML) requires that any money used for a down payment be confirmed and sourced for 90 days.  3 months of bank or investments will be required for each account holding any down payment funds.  Deposits over $3,000.00 will need to be sourced.
• Down payments can be gifted from an immediate family member or spouse.

📝 Complete Documentation

• Ensure your application includes all necessary documents, such as:
  • Recent pay stubs
  • T4s or T1 Generals (for self-employed applicants)
  • Bank statements (90 days) showing savings or down payment
  • Proof of additional income (child benefits, rental income, etc.)
  • Valid ID
  • Existing property documentation (property tax bill, mortgage statements, lease agreements for rental properties).

🤝 Co-Signer or Guarantor (if needed)

• If your application is weaker due to income or credit, a co-signer with strong financial credentials can help improve your chances of approval.

💼 Work with a Mortgage Broker

• A broker can present your application to multiple lenders and help you secure the best deal. They’ll also guide you on what’s needed to strengthen your file.

Key Takeaways

A strong mortgage application highlights your financial stability, responsibility, and ability to repay the loan. By organizing your finances, improving your credit, and providing thorough documentation, you’ll increase your chances of approval and secure the best mortgage terms.

Let us know if you’d like help preparing your application—we’d love to assist! 🏡✨

We put in the work upfront to ensure no surprises when you write an offer on your dream home. Our thorough pre-approval process focuses on income, credit, down payment, existing properties, expenses, and other critical items to set you up for success.

Income Documentation

• Employed Individuals: Letter of Employment, pay stubs, T4s, and bank statements to confirm deposits.
• Self-Employed Individuals: T1 Generals, NOAs, SOAs, and, if incorporated, T2 Generals and APFS.
• Pensioners: T4s, NOAs, pension documents, and bank statements to verify deposits.
• Parents: CCB statements, children’s DOB information, and bank statements to confirm deposits.

Down Payment Verification

We review up to 90 days of bank statements (30 days for some lenders with 20% down payments). Documents include investment statements, RRSPs, TFSAs, FHSAs, property sale documents, or gift confirmations. Deposits over $3,000 must be sourced.

Credit Review

We pull your credit report to identify and correct inconsistencies, ensuring there are no surprises.

While reviewing all this documentation is time-consuming, it allows us to provide clients and REALTOR® partners with solid, reliable pre-approvals. Unlike others, we prioritize accuracy to avoid heartbreaking situations where financial institutions fail to honor their pre-approvals.

Not all pre-approvals are created equal. Choose the team that works hard upfront to treat your money like their own.

This week, OSFI (Canada’s banking regulator) announced an important and sensible adjustment to the mortgage renewal process:

No More Stress Test at Renewal.

Before anyone jumps to conclusions like, “Isn’t that risky?”, let’s break down how mortgage renewals work in Canada:

• Most Canadian residential mortgages are structured as short-term agreements. Over 95% of all mortgages fall within 1-to-5-year terms.
• Because of these short terms, renewing your mortgage with your current lender is usually automatic. There’s no re-underwriting involved.
• When it’s time to renew, borrowers typically receive a renewal letter from their lender offering rates for different term options. The borrower simply picks one—no additional financial scrutiny is required.
• In fact, the current lender doesn’t even check if the borrower is still employed.

Now, if borrowers want to shop around for a better rate, that’s a different story. They have to go through the hassle of providing updated proof of income. Until now, they also had to pass a stress test—a requirement that felt unnecessary and inconsistent, given the lack of income verification from the existing lender during renewal.

This is what has changed.

This change is a huge win for the 12%–15% of borrowers who previously couldn’t shop for better rates because of the Stress Test. Shopping around is critical, especially in today’s environment where almost every renewing borrower is facing higher rates. Now, borrowers have a real opportunity to seek out and secure the most competitive deal available to them.

Why was this necessary?

For five years, OSFI insisted it was dangerous not to Stress Test mortgage renewals—even though they were well aware that lenders didn’t verify income during the renewal process. This inconsistency made the Stress Test a roadblock for borrowers looking to improve their terms.

Interestingly, it wasn’t OSFI but the Department of Finance that pushed for this sensible policy change, finally addressing the gap.

Why did OSFI resist this for so long? That’s a question worth pondering. But for now, let’s celebrate the fact that a flawed policy has been corrected, making the mortgage renewal process fairer and more consumer-friendly.

In a market like today’s, where every percentage point matters, this change empowers borrowers to make better financial decisions and secure the best possible rates. We may be back on track to an era of good mortgage policy.

Thinking Beyond the Mortgage: Financial Planning for Homeowners

When securing a mortgage, it’s easy to focus on rates and payments, but the true cost of homeownership goes beyond just the monthly mortgage. A solid financial plan can help set you up for success. Here are some critical questions to ask:

1. Have You Considered All the Costs? Do you fully understand the costs associated with owning a home? Beyond the mortgage, there are utility bills, home insurance, property taxes, maintenance, and more. Every dollar counts, and planning for these expenses can prevent surprises.
2. Have You Done a Household Budget? A detailed budget can give you clarity on your monthly cash flow. Knowing what you spend versus what you bring in ensures you’re living within your means and can make it easier to manage unexpected costs.
3. What’s Your 3, 5, and 10-Year Plan? Life changes, but having goals can help guide your financial decisions. Whether you plan to move, upgrade, or stay put, knowing where you want to be in a few years can help you make the right financial choices today.
4. Are You Prioritizing Savings and Investments? Building equity in a home is great, but what about your other financial goals? Will you have enough left over each month to contribute to savings, your RRSP, or a TFSA? Planning for the future should be a part of your strategy today.
5. Are You Living Within Your Means? Maintaining a comfortable lifestyle without stretching finances thin is the key to long-term success. Understanding your limits and sticking to them can keep financial stress at bay.

Homeownership is a major step in your financial journey. Make sure you’re prepared for not only today’s costs but also tomorrow’s possibilities. If you’re unsure about any of these points, let’s connect. I’d be happy to discuss how we can help build a mortgage plan that aligns with your long-term financial goals.