This February we touch on the ABC's of Alternative Lending and the idea of if "we" are qualified to help qualify you for a mortgage. We also provide a homeowners tip on insurance and provide some additional information on who is DLC along with who is The Westlake Team if you don't already know!
ABC's of Alternative Lending:
Often clients look at alternative lending solutions as higher interest rate products or solutions that they will never require. Although, alternative lending solution typically have a higher interest rate, the suite of products that are in the alternative lending channel are typically short term in nature and designed to help home owners. The big banks and credit unions that we do a lot of business with, along with the mono line lenders have very strict underwriting guidelines and don't always provide the solutions home owners are looking for.
In todays market when we see clients that are self employed - filing minimal personal income, have bruised credit for one reason or another, going through a separation or divorce, have a bankruptcy on file, looking to build or do a major renovation, have taxes owning CRA, purchasing under a corporate name, agricultural zoned property, have multiple investment properties or anything else that seems on the fringe of lending, requires creative or "alternative financing solutions" perhaps.
Alternative lending isn't necessarily a bad thing. Its a lending solution that may be temporary or justifiable, pending your circumstances. The most important determining factor in using alternative lending solutions is figuring out the exist strategy. Determining if the alternative lending solution is long term in nature and justifiable or short term in nature, and if so, whats the exit strategy and how.
We help a lot of clients that run into niche lending solutions and are confident that with the access and options we have through the broker channel, we can provide the right advise.
Are we Qualified to help you Qualify:
I love it whenever we bring a spotlight to the educational component and licensing for mortgage brokers. More specifically, I love it when we shine a light on the fact not all brokers are created equally and provide equal level of service and education.
Clients may not know it but while regulations can vary province to province each mortgage professional must be licensed to carry out broker activities. All mortgage professionals (in the broker space, unlike a bank mortgage rep) must complete their approved provincial course. Then the mortgage professional must be hired by the Financial Commission of Ontario licensed brokerage which applies to the commission for that particulars brokers license. There are continued educational courses, lender seminars, CMHC tools and training related activities, mentorship available through certain brokerages like ours and a full suite of other educational content to help ensure the mortgage professional is providing the best advise.
While I do appreciate the licensing and educational content, I still think the industry can do more to create harder barriers for entry. The process from my perspective should take longer and be a slightly higher financial burden to ensure mortgage professionals are entering because they believe in the industry and want to serve their clients and referral sources the right way. Thats why I sit on the board for The Luxury Mortgage Accreditation. A program and course to help educate mortgage professionals and help them become accredited in the Luxury Lending Space. This lending environment requires a higher level of sophistication and care and our accreditation helps mortgage professionals with the tools and skill sets to provide the best advise.
Homeowner Insurance:
Much like car insurance, the higher the deductible you choose, the lower the annual premiums will be on your home insurance. But the problem with selecting a high deductible is that smaller claims/problems such as broken windows or damaged sheetrock from a leaky pipe, which will typically cost only a few hundred dollars to fix, will most likely be absorbed by you as the homeowner.
Mortgage APP: For any potential homeowner, mortgage holder, individual thinking of renewing their mortgage, refinancing our free mortgage app is one of the best tools to have all that information at your finger tip. understanding how much you qualify for, interest rate updates, closing costs and more can be calculated by downloading our new and improvised mortgage app. https://www.dlcapp.ca/app/scott-westlake