Returning to the ‘A-Side’
Every year Canadian families are caught in unexpected bad circumstances only to find out that in most cases the banks and the credit unions are there (to lend you money) only in the good times, not so much during the bad times.
Working with a Mortgage Broker
This is where thousands of families have benefited over the years from the services of a skilled mortgage broker that has access to dozens of different lending solutions including trust companies and private lending corporations. These short-term solutions can help a family bridge the gap through business challenges, employment challenges, health challenges, etc.
Having an exit strategy
The key to taking on these sorts of mortgages is always having a clear exit strategy, which in some cases may be as simple as a sale deferred to the spring market. Most times the exit strategy involves cleaning up credit challenges, getting consistent income back in place and moving the mortgage debt back to a mainstream lender. Or as we would say in the business an ‘A-lender’.
Changes to the lending guidelines
The challenge for our clients, and for us as mortgage brokers, over the past few years, arguably over the past nine years, has been the constant tinkering with lending guidelines by the federal government. And the upcoming changes Jan. 1, 2018 represent far more than just ‘tinkering’.
January 1, 2018 lending guideline changes
This next set of changes are significant, and will effectively move the goal posts well out of reach for many clients currently in ‘B’ or private mortgages. Clients who have made strides in improving their credit or increasing their income will find that the new standards taking effect will put that A-lender mortgage just a little bit out of reach as of the New Year.
Reasons to use a Mortgage Broker
No matter what your situation is, a Mortgage Broker will try to help. We work directly with dozens of lenders and have different lending solutions to meet the individual needs of our clients. Even when your mortgage paperwork is singed, we are here to provide you with ongoing support. Contact Client First Mortgage Solutions today
Original Article – Dominion Lending Centres – December 8, 2017
