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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.