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Mortgage Deals November 2018

How To Get A Home Equity Loan Bad Credit

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Canadian Home Equity Loan Bad Credit

Home equity loans can be used for a variety of reasons even bad credit. When you have bad credit a home equity loan can allow you to payout or negotiate your debts which should improve your credit and improve your chances of qualifying back at a bank in as little as 12 months. Second mortgages are mostly used when consolidating your debts into a bad credit mortgage loan.

How to Negotiate debt into a home equity loan.

We can show you how to negotiate debts with an R5 to R9 down and in some cases, paying 50% to 35% on the dollar. We also work with secondary debt management companies that can help assist you. Many times, the home equity loan can pay for itself with the money you save in negotiating these debts.

What is Bad Credit

Credit scores in Canada range from 300 to 900. The higher the credit score the better your chances of getting approved. A bad credit score is 600 or below and if you are in this range your application usually will have to be serviced by a private mortgage lender.

What Causes Bad Credit?

Bad credit can happen from a combination of issues:

Payment History, late payments and missed payments can negatively affect your credit score.

Delinquencies continues late or missed payments

Balance & limit: Keeping balances over 50% of the limit and constantly running up the limit of your credit card can have a negative impact on credit score.

To Many enquirers: Credit seeking has a negative impacted on your credit score. Applying for car loans or multiply credit card application or other applications for credit can impacted your credit.

Account History: Credit is a history of you using credit. If you have very new credit this can be a false credit score. As well if you close old credit cards you are wiping out history that can be vital to showing your history.

 What is a good credit score?

Good Credit scores start at a rating of 650. Depending on your income and debt servicing levels you should be able to obtain many options of financing.

What do the Credit Rating symbols mean?

This information is provided on office of consumer affairs of Canada website

R0: Too new to rate; approved but not used.

R1: Pays (or paid) within 30 days of payment due date or not over one payment past due.

R2: Pays (or paid) in more than 30 days from payment due date, but not more than 60 days, or not more than two payments past due.

R3: Pays (or paid) in more than 60 days from payment due date, but not more than 90 days, or not more than three payments past due.

R4: Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due.

R5: Account is at least 120 days overdue, but is not yet rated “9.”

R6: This rating does not exist.

R7: Making regular payments through a special arrangement to settle your debts.

R8: Repossession (voluntary or involuntary return of merchandise).

R9: Bad debt; placed for collection; moved without giving a new address or bankruptcy.

NOTE : Other rating indicators that might be found on a report are “I” for installment credit or “O” for open credit line.

Source : Equifax Canada

Can I Get a Home Equity Loan With No Income?

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If you own a home and have home equity you can get a home equity loan even without a job. Home equity lenders primary focus is your homes equity. Many times, people starting a new business, new Canadians or temporary job loss can leave home owners without conventional income to qualify under. With home equity lenders this doesn’t matter as much. We can explore a few options that assist no income home equity loan approvals.

Types of No Income Home Equity Loanscan i get a home equity loan with no income

Home Equity Loan No incomeStated Income Home Equity Loans

The most common home equity loan is one where a home owner is self employed but claims very little income. We have many options both at a bank & through our private mortgage lenders.

Home Equity Loan No incomePre-Paid Home Equity Loan

If you are out of work or started a job with limited income and require funds to bridge yourself until income starts flowing in, we can provide pre-paid mortgage options. This is usually using a 2nd mortgage. If you currently have a 1st mortgage at a great interest rate, we can offer a second mortgage where you obtain the money you require plus an additional lump sum to pre-pay your mortgage, so you can work on the things that are important to making you successful.

Home Equity Loan No incomeHome Equity Loan with Guarantor

This option may work both at a conventional (bank) lending & home equity lending. For this purpose, I will speak only to the home equity loan aspect.  

Many times, I have applications where a home owner have a home but very little to no income. This can be due to employment, marital reasons or any other reason. These home owners sometimes have a spouse or common-law spouse or any other variation of relationship. In this situation you can have the home owner that makes very little but the “partner” makes very good income. They may want to be associated at this time with the title of the home or may not want to be associated with the title of the home. The consigner may have good credit or bad credit it doesn’t really matter the primary focus is showing lenders that there is a good likelihood that this guarantor will assist with the payments.

Home Equity Loan No incomeReverse Mortgage

A reverse mortgage is a type of mortgage offered by Home Equity Bank and Equitable Bank. It essentially allows home owners 55 years or older to borrow money using their home equity without having to make a payment. Your age income & credit is not an issue.

Home Equity Loan No incomeBalloon Mortgage

Balloon mortgages can work in a variate of ways. It allows a home owner to make a small monthly payment but, in some cases, no monthly payment of interest or principle for a fixed term. This term is usually one to two years. At the end of the term you would have to pay the balloon interest owed or refinance again to include the balloon interest owed. This is primarily offered only if you have substantial home equity. The cons are obvious if your employment situation does not improve in a short period of time you will erode the equity saved up in your home and incur a higher cost of borrowing for this type of product.

Information on How To Stop Foreclosure in BC

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If you are a home owner in British Columbia and you have fallen behind on payments or your bank will not renew due to previous payment history here is some options you can consider.

Mortgage Lenders That Assist with Foreclosures

Your BC Mortgage Broker has options through alternative mortgage lenders that can assist with reinstating your mortgage & if require refinancing your entire mortgage.

Lawyers to Consult

Dial A Law library “is prepared by lawyers and gives practical information on many areas of la in British Columbia.

What is a Foreclosure?

A Foreclosure is an action from a money lender when the borrower has stopped paying back the mortgage.

What is a Mortgage?

Mortgages are contracts between lenders and borrowers to pay back a loan or mortgage.

What are missed or late mortgage payments?

Lenders do not want to foreclose on properties so missing or being late on a few payments doesn’t necessarily mean you will loose your home. Lenders usually start the process of foreclosure after the 2nd or 3rd month after of non payment.

What The Process if Lenders Start Foreclosure?

Petition: Lawyers file a petition to court and you will be served with a copy. It is sent to all interested parties. You can file a response to the petition.

First Hearing: At the hearing the lender will be looking for the judge to give them an “order nisi”. Most cases the borrower will be granted a “redemption period” usually 6 month redemption period.

What Happens at the End of Redemption Period: Typically at the end of a redemption period the lender can choose to have he property listed for sale by the court. The other options for the lender is to request “absolute order for sale”.

Court ordered Sale: Court ordered sale is when the courts list the property for sale and approves the sale of the property. If there is a short fall to pay the petitioner in full the petitioner can seek a deficiency judgment form the court against the borrower.

Order Absolute: Absolute order of Foreclosure is granted to the petitioner and they become the new resisted owner of the property. This happens when when the property value equals or exceeds the debt. No other action an be taken against the borrower.

To review your situation please feel free to contact us or apply online and we will be happy to discuss options.

Mortgage Deals November 2018

How To Calculate Loan To Value Home Equity Loan

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How to calculate loan to value for a home equity loan is simple. Most times when refinancing a mortgage or taking out a home equity loan lenders want to know what the loan to value is.

Why Is Loan To Value Important To Mortgage Lenders

Loan to value is important to mortgage lender because it help them to determine risk. The higher the degree of risk for the lender usually indicates a higher rate of interest and costs applied to the loan.

How Much Equity Do Need To Get A Home Equity Loan?

how to calculate loan to value for home equity loan






Loan To Value Thresholds for Home Equity Loans (location & property type can restrict loan to values)

<50% Loan to Value (best rate options for 1st & 2nd Mortgages)

<60% Loan to Value (best rate case by case options 1st & 2nd Mortgages)

<65% Loan to Value (Good market rate options 1st & 2nd Mortgages)

<70% Loan to Value (Market rate options 1st & 2nd Mortgages)

<75% Loan to Value (*Market rate options 1st & 2nd Mortgages) May have to provide more information to qualify for.

<*80% Loan to Value (case by case must show decent credit and an ability to pay) Other requirements may be required

<*85% Loan to Value (case by case conditions apply)


For assistance calculating loan to value feel free to give your BC Mortgage Broker a call. (please note that this for information purposes and only relates to British Columbia Canada.)



Private Equity Deal of the month

Private Equity Mortgage of the Month Coquitlam BC

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Deal of the Month May 2018: An Incredible Private Equity Deal in Coquitlam BC

Past client who owns a bare land strata in Coquitlam BC needed some extra money to help with living expenses. Client is a senior has limited income but has a common law wife still working and his house was valued at $950,000. Client had a 1st mortgage of $377,000 with a B-Lender but did not have enough income to support a larger 1st mortgage. Added to this there were several years before his 1st mortgage was coming up for renewal and a large penalty if he paid out.

We were able to secure a second mortgage of $215,000 at 8.8% with broker and lender fees of 2%. Client now has the money to have fun go on a holiday and live comfortably for the next few years.

What to Consider When Looking at a 2nd Mortgage in BC

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Second Mortgages are a fast and easy way to obtain money using a home equity loan to do things like: debt consolidation, home renovations, create fast business capital if your self employed, pay outstanding bills like taxes or liens. These are great for reducing payments, paying out debts or increasing cash flow but what else should you consider?

Rates on Private 2nd Mortgages

Consumers are fixated on rates, this shouldn’t be a surprise but as a mortgage professional we can or should be able to see a larger picture.

Take for instance a blended rate. What is a blended rate you might ask? By looking at your 1st mortgage balance and rate and considering a smaller second mortgage usually at a much higher rate you can compare your blended rate. Here is a link to a blended rate calculator.

Example of How a Blended Rate Works

Look at it this way, your 1st mortgage is larger (lets use $350,000 as an example at a rate of 3.25%) and you are looking for a 2nd mortgage which is usually smaller (lets use $50,000 as an example at a rate of 10%) your Blended rate between the two loans are 4.09%. So why are you focused just on the 2nd mortgage rate at 10%? It’s a smaller amount of money.

Costs in Breaking a 1st Mortgage (IRD)

Now consider what is the penalty of breaking your 1st mortgage? Most Fixed mortgage terms have an interest differential penalty (IRD). This penalty can be many thousands of dollars depending where you are in the term and the interest rates offered by your bank.

Costs associated with a 2nd Mortgage

Now 2nd mortgages do have a higher rate of interest depending on the loan to value. As well there are legal costs such as title insurance, Insurance Binders plus strata Form B’s if you are in a strata or bare land strata. Onto of this Mortgage Brokers do not get paid by the lender so the borrower does have to pay a fee associated with 2nd mortgages financing. In a lot of cases these costs of doing a 2nd mortgage are a cheaper option than breaking the term on your 1st mortgage.

What a mortgage expert should be doing when looking at your application:

  • Review the length of term left in your 1st mortgage to determine if its in your benefit to refinance now or obtain a 2nd
  • Review your credit to see how long you will require funds if you have poor credit.
  • Consider what lender would work best. (some lenders work with clients longer who have a history of late or missed payments while others have little patience for this type of borrower) Of course costs and rates will be higher for lenders that offer a more patient approach but the over all savings of a lender not renewing is usually far greater.

For a review of your situation feel free to call us.

small house made of jenga blocks sitting on grass

B Lender Mortgage Rates BC Canada

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Mortgage Rates vary from B lender to B lender

B Lender Mortgage Rates BC for a 1 year fixed rates can start as low as major banks 5 year fixed rate. Keep in mind B Lenders do charge a lender fee plus you are responsible for all legal & appraisal costs. There may be additional costs so call for a complete review of your situation.

Why Use B Lender Mortgages 

B Lender Mortgage RatesB Lender mortgages are you next best option if your bank has turned you down due to lower than average credit score or income issues.

What do B Lenders Mortgages do?

B Lender Mortgages are ideal for:

  • Self employed B Lenders mortgages have higher debt servicing ratios than banks
  • New Immigrants to Canada who do not have established credit history yet
  • High home equity but income does not support TDS & GDS ratios for the big banks
  • Lower than average credit scores.
  • Previous bankruptcy 1 day discharged
  • Payout consumer proposals, income tax arrears, property taxes

Best B Lender

“Who is the best B Lender” being a question we get all the time. The answer is not as simple as rate. Each lender has slight differences and choosing is best lender & terms should be left up to your mortgage broker.

B Lender Mortgage RatesWho are B Lenders?

Some of the major B Lenders in BC are:

  • Home Trust
  • MCap
  • Optimum
  • Peoples Trust
  • Xceed Mortgage Corp
  • Equitable Bank
  • Bridgewater Bank

As well as alt products through some smaller credit unions & trust companies

Rates vary from B lender to B lender

B Lender 1 year fixed rates can start as low as major banks 5 year fixed rate. Keep in mind B Lenders do charge a lender fee plus you are responsible for all legal & appraisal costs.

Best B Lender

Who is the best B Lender being a question we get all the time. The answer is not as simple as rate. Each lender has slight differences and choosing is best lender & terms should be left up to your mortgage broker.

B Lender Mortgage RatesWhat cities do B Lender Mortgages go to In BC?

B Lender Mortgages lend typically in major centers in BC.

  • Metro Vancouver
  • Major Cities in the Okanagan
  • Major Cities on Vancouver Island

B Lender turned you down. What Now?

If you do not qualify under a B Lender mortgage your next choice is a Private Mortgage lender. Now if you were looking to refinance your current mortgage and you are not at the end of your term a second mortgage may be a more cost-effective options.

This articular is for information purposes and details in this articular can become outdated with mortgage rule changes. Call us for the latest information.  
Self Employed Home Equity Loan

You Can Get A Home Equity Loan If You are Self Employed in BC

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You Can Get A Home Equity Loan If You are Self Employed

For the self employed it is common to wonder if you can get a home equity loan if you are self employed and have low income. Many self-employed individuals think due to their business for self income that banks & other lenders are less likely to approve them for a home equity loan. Banks do have tougher criteria for approving a HELOC and usually look at things like credit & income documents but there are many products out there that can help.

We have groups of products that take your home equity into account rather than solely focusing on income & credit. Our lenders understand that self employed home owners regularly take advantage of write-offs and other ways of income tax deductions. We also can assist with personal income tax, GST and PST arrears where some banks are less likely to assist in the payout of.

Many self-employed home owners don’t claim a lot of their income and this makes it difficult if a business opportunity presents itself. We have innovative products to assist with loans for business capital. Again, your credit and income are not an issue these types of loans focus more on your homes equity.


What’s the Process?

B-Lenders MortgageIf you are self employed and require a Home Equity Loan or HELOC the process is simple. You can apply 2 ways. Through our secured online application or by calling 1-877-744-3436 and one of our mortgage brokers will be happy to structure your home equity loan.

man in a suit offering a deal to refinance mortgage with bad credit

Can I Get A Loan To Pay CRA Taxes BC

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How To Pay CRA Taxes

Owe Taxes To CRAIf you are self employed chances are at one time or another you have been late or missed paying your taxes.

CRA has strong powers enabling them to collect missed taxes. CRA can withhold child tax credits, GST credit take money from bank accounts or pay cheques as well you will be charged interest on the taxes you have outstanding.

How to Prepare

To prepare start by knowing what you owe, submit all outstanding tax returns to CRA. Obtain professional assistance from an accountant or tax preparation service.

What if You Can’t Pay All At Once

If you can’t pay your CRA bill in one lump sum you may be able to apply for a negotiated payment schedule. This schedule is usually a length of one year. You will be required to pay interest on the Tax arrears until taxes are completely paid off. A CRA office near you will be able to provide you details on how to get this done.

What Next If You Can’t Pay CRA Debt Off

If CRA Does Not Accept Your Offer you will likely have to look at other options. One common options is if you own a home with home equity you can obtaining a 2nd mortgage or a home equity loan to payout CRA in one lump sum. Keep in mind a HELOC through your bank is likely not an option due to banks commonly do not allow the payout of income taxes in a refinance or equity takeout.

How to Avoid History Repeating itself with Tax Debt

To help avoid accumulating to much tax debt have a plan. Try putting away a monthly amount for taxes.

Try to guess what your annual income will be. Then look at a Marginal Tax Rate Grid for BC & Federal Taxes. Here is a Link to TaxTips.ca there you will find a rate per income threshold. Use this information to make predictions on how much tax you will owe based on each income threshold you surpass.

CRA requires quarterly payments on income taxes so by following this grid it can assist you with making those CRA tax instulments.

Best Home Equity Lender BC

Private 2nd Mortgage Coquitlam BC

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Private 2nd Mortgage Coquitlam – Deal of the Month April

Client has a $2,400,000 valued home in Coquitlam with a large 1st mortgage. I secured a 2nd mortgage of $300,000 @ 8.99% Broker/Lender fees under 2% of the mortgage amount

Home Equity Loan CoquitlamClient needed funds to do some debt consolidation and home renovations with the intent to sell in just over a year. Clients credit was great but the income was very low and not enough to sustain conventional debt service requirements with a bank. They now have the funds they need to renovate their home and consolidate debt as well as assist them with payments over the term of the mortgage.