Canadian Alternative Mortgage Lenders – qualification, clientele, speed
What is a Canadian Alternative Lender?
An alternative lender in Canada is a financial institution that provides loans to individuals and businesses who may not qualify for traditional bank loans.
Alternative lenders are also known as “B lenders” because they typically offer loans to borrowers who do not meet the strict lending criteria of the major banks, but who are still considered creditworthy.
Reasons to Consider Alternative Mortgage Lending
The primary reason why someone would need an alternative lender is because they may not be able to secure a loan from a traditional bank due to factors such as a low credit score, insufficient income, or a lack of collateral.
Alternative lenders are often more flexible than traditional banks in their lending criteria, and they may be willing to work with borrowers who have a higher level of risk.
Alternative Mortgage Loan Qualification
To qualify for a loan from an alternative lender, borrowers will typically need to meet certain requirements, which can vary depending on the lender.
Some of the common requirements may include a minimum credit score, proof of income or employment, a certain level of equity in a property and a solid business plan for businesses.
Conclusions and Further Thoughts
Clients who use alternative lenders may include individuals who are self-employed, have a poor credit history, or are unable to meet the strict lending criteria of traditional banks.
Small businesses that do not have a long track record or substantial assets may also turn to alternative lenders for financing.
In some cases, clients may choose alternative lenders simply because they offer faster and more convenient loan processing than traditional banks.
Contact Huber Mortgage regarding your alternative lending options – HERE
Sincerely,
Michael
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE
