When you do not meet the prime lenders (strict) criteria, don’t worry! There are several other lenders approving “alternative” files. Allowing for exceptions such as:
- 35-year amortization
- Fully gifted funds permitted
- CCB is acceptable AND grossed up by 25% as long as children do not turn 18 during the term of the requested loan
- Contributory income can be added for residing family members (up to $1,200/month)
- Debt servicing allowance at 50/50, with options up to 60/60 and 65/65 (location, loan to value, and credit restrictions may apply)
- No minimum credit score when LTV is 65% or less
- Subject Rental Calculation = 90% Add-back
OAC. There are many more flexible “rules” with a variety of lenders. It really comes down to the lenders “risk assessment” of your application. Less risk = better rates, more risk = higher rates.
Please get in touch for more information.
