ARE THE ‘BIG 5’ THE ONLY OPTION FOR CANADIAN MORTGAGE BUYERS?

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ARE THE BIG 5 THE ONLY OPTION FOR CANADIAN
MORTGAGE BUYERS?
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• If youre looking to buy a new home, no longer
  are you restricted to the Big 5 as your only
  options for applying for a mortgage. Nowadays,
  alternative mortgage lenders often referred to
  as B lenders are growing in popularity and
  the choices are wider than ever before.
• In the past, most homeowners had a good credit
  rating and a dependable source of income, but as
  times have changed, this is no longer the norm.
  These days, if your credit rating isnt great and
  you struggle to prove your income, statistically
  you qualify as the new normal. This all means
  that gaining approval from one of the Big 5,
  Canadas biggest banks, may well be beyond your
  means.

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• However, help is out there if you fall into
  either of these categories in the form of
  alternative lenders, who use a different approach
  when approving mortgages less interested in bad
  credit history or unreliable income, they
  generally assess your equity instead.
• Do B lenders offer the same mortgages as the Big
  5?
• Most of the products on offer to homebuyers from
  Canadas biggest banks, are also offered by
  alternative lenders, including 1st mortgages,
  home equity loans, home equity lines of credit
  (HELOC), 2nd mortgages and mortgage refinance and
  debt consolidation.

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• Many B lenders also offer a range of products
  that are more flexible than those offered by the
  Big 5, and they will consider poor or bad credit
  mortgages, interest only mortgages, 100rental
  offset mortgages, stated income mortgages,
  property tax loan mortgages and CRA debt
  consolidation mortgages.
• What are the biggest differences between the Big
  5 lenders and B lenders?
• While Canadas big banks are looking for
  faultless credit and a stable income that can
  easily be verified, B lenders have shifted their
  focus to how much equity you have and underwrite
  their approvals using an approach that is based
  more upon common sense.

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• You might be wondering how B lenders can take
  this approach, and its down to the fact that
  theyre not governed in the same way that the big
  banks are, which enables them to make more
  exceptions when approving mortgages.
• How have the new mortgage rules impacted upon the
  Big 5 lenders?
• New rules set out by the federal government have
  forced the bigger mortgage lenders to reduce
  amortizations and mortgage loan sizes. If youre
  a self-employed person seeking a mortgage, these
  new rules will make it harder for you to borrow
  and will limit the percentage that clients can
  refinance their home to.

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• What do the new rules mean for B lenders?
• Essentially, this has simply meant that
  alternative lenders have become an even more
  attractive prospect to buyers, and mortgage
  brokers are increasingly turning to them to get
  the best rates for their clients.
• There are many alternative or B lenders working
  for homebuyers today, and the best way of gaining
  access to them is through a mortgage broker. With
  so many mortgage options available through
  lenders that dont have to follow the same
  restrictions as the Big 5, navigating your way
  through them all can be tough and often
  confusing. Going it alone will usually take you
  longer and may not always find you the best deal.
  Hire a mortgage broker and purchase your new home
  with confidence.

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• Red Key Mortgage is located in Calgary, Alberta.
  We are a boutique brokerage with high volume
  serving hundreds of clients locally and
  nationwide every year. We have a number of
  associates dealing in mortgages as licensed by
  the Real Estate Council of Alberta. As a best
  mortgage broker in Calgary, Red Key Mortgage,
  will provide all of your available options from
  the entire mortgage market and allow you to make
  an educated decision where you'd like your
  mortgage to go. Red Key Mortgage works with big
  banks in Canada, as well as over a dozen other
  AAA lenders. Best of all, our services are paid
  for by the lenders at no additional cost to our
  clients. If you are looking for 2nd mortgage in
  calgary, contact us today! We can't wait to get
  started.