Our Blog

Whether you have a good or bad credit rating, you may still find it difficult to secure a mortgage from one of Canada’s traditional lenders. That’s because Canada’s big banks and credit unions take a lot of factors into consideration, such as your credit score, debt ratio, down payment, and annual income, before approving a mortgage loan. They want to ensure you are good with money and that there is a high chance you’ll be able to pay the mortgage back.

Unfortunately, many Canadians don’t meet the big banks’ requirements because each person’s financial situation and history is different. And this is getting in the way of their home ownership dreams.

In fact, if you don’t meet the big banks’ loan requirements in Ottawa, it does more than just hinder your chances of getting a mortgage with the best rates and terms. It could also make it difficult to get a loan from the bank, make it more difficult to refinance, and make it harder to get a home equity loan.

So, what happens if you don’t meet the banks’ requirements? Does it mean you can’t secure a mortgage? That’s where private lenders come in. Canadalend.com work with hundreds of different private lenders, many of whom specialize in helping those denied by the big banks secure a mortgage.

Ottawa Is One of the Top Real Estate Markets to Watch

It’s a great time for people to consider getting a mortgage or other financial product from a private lender. Vancouver and Toronto may be capturing all the attention when it comes to Canadian real estate, but the fact of the matter is, Ottawa is home to one of Canada’s strongest and steadiest real estate markets.

This is true for a number of reasons. First, the federal government is a huge employer, helping keep the Ottawa real estate market strong. On top of that, the city’s technology industry is red hot, online retailer Shopify is expanding the size of its headquarters, and major retailers are expanding into Ottawa.

Second, the tight rental market makes purchasing a home in Ottawa a much more attractive option. Because of the median price for detached homes and condominiums, the new stress test on mortgages implemented by the federal government will have less of an effect on Ottawa home buyers.

In a market like Ottawa, affordability isn’t nearly as much of an issue.

Mortgage Options for People in Ottawa

If you’ve been turned down by the banks for a mortgage, or any other financial product, because you don’t meet their requirements, talk to the mortgage professionals at Canadalend.com. We offer a full range of mortgage financing solutions for those looking to refinance or renew, take out a second mortgage, and get approved for a construction or renovation mortgage, as well as provide a variety of other commercial products for business owners.

We offer some of the lowest mortgage rates in the country. How can Canadalend.com beat the major banks? For starters, the big banks are federally regulated and need to follow strict lending rules. Canadalend.com works with private lenders who are not bound by the same lending rules. As a result, we have a lot more flexibility when it comes to helping you find the mortgage or other financial product you deserve.

Canadalend.com also works with hundreds of different lenders. This makes it possible for Canadalend.com to negotiate the best mortgage with the best rates and terms. This is in sharp contrast to any of the big banks which only try and sell you their financial products, whether it’s in your best interest or not.

Canadalend.com Mortgage Service for Ottawa Residents

Below are some of the mortgage and financial products we provide.

• Private mortgages in Ottawa
• Second mortgages in Ottawa
• Residential mortgages in Ottawa
• Mortgages for those in Ottawa with unreliable income
• Mortgage refinancing in Ottawa
• Mortgages for those in Ottawa with bad credit or no credit
• Commercial mortgages for businesses in Ottawa
• Home equity line of credit (HELOC)
• Mortgages & tax arrears in Ottawa
• Debt consolidation in Ottawa
• Home equity loans in Ottawa
• Mortgages for those in Ottawa who are self-employed

Canadalend.com, Helping Ottawa Residents Secure Mortgages

Applying for a mortgage can be stressful. If you have been turned down by traditional lenders or think your mortgage application will be, call the licensed, independent mortgage professionals at Canadalend.com.

Canadalend.com is the nation’s leading low-cost mortgage solution provider. Because Canadalend.com agents are independent, they are able to draw from hundreds of banks and lenders to help you find the mortgage best suited to your financial and lifestyle needs. Many of these lenders specialize in providing mortgages to clients that have either good or bad credit, are self-employed, have an unreliable employment history, bruised credit, or even declared bankruptcy.

If you are interested in finding out what kind of mortgage you qualify for contact Canadalend.com today or apply online and a Canadalend.com mortgage specialist will set up an appointment at your earliest convenience.

Life changes and your personal finances tend to change with it. So much of your life is tied to your finances so when either a positive or negative shift occurs you need to re-evaluate your entire budget.

For borrowers who experience a change in their financial situation—new job, promotion, unemployed, come into money—they need to understand how they can adjust their home equity loans and mortgages or what strategies they can adopt to ensure their loan terms match their financial situation.

Redo your Budget

Once a change in your personal finances is a distinct possibility, sit down with your budget and review each expense against your new monthly income. This will give you an idea as to whether you need to pay less towards your loans per month or if you can pay more towards the principal amount of the loan.

Notify your Lenders

As soon as you know the details of your new financial situation, make an appointment to speak with your lender to discuss options and determine if you need to negotiate different terms. Depending on the lender (traditional or non-traditional) you could have options as a borrower. Nothing can change unless you initiate the conversation with your lender. In most cases, they are happy to work with you to ensure you can pay your loan or loans.

Your Mortgage and Loans

If you find yourself with more disposable income per month, then you could endeavor to pay off your loan faster. If you lose your job or find yourself in a situation where you need to support a dependent or pay for post-secondary education, then you might be able to negotiate new loan terms which will improve your cash flow. This applies for mortgages, home equity loans or a home equity line of credit. The goal should always be to pay the most towards principal but every situation is unique.

Lenders want you to be able to pay your loans so most will work with you to determine a course of action if your financial situation changes.

Buying a home in the GTA is a stressful process that can be rife with challenges and obstacles. From start to finish, the process can include saving for a down payment, reviewing lenders, filling out the extensive application, awaiting approval, dealing with insurance providers and then shopping for your dream house.

The Federal Government has added a stress test to the mix, complicating matters somewhat for already nervous borrowers.

Should the stress test be causing you stress? Or will it prove to be beneficial for borrowers, lenders and the GTA housing market?

The Stress Test

A stress test means that applicants now must prove they could withstand a substantially higher interest rate if this occurs. It’s a simple formula designed to protect borrowers and lenders form loan defaults and to stabilize the housing market.

Unfortunately, this has slowed or stopped the dream of homeownership for many Canadians. People must not only be pre-approved for a mortgage, their application must overcome an additional challenge in the form of a stress test.

The stress test isn’t all negative, though. There should be a lot of positive outcomes for homeowners.   

Benefit to Canadians

This regulation will help ensure that more Canadians are financially prepared for the responsibility of homeownership. The real benefit will come from a housing market with more pricing options and less bidding wars because the pool of buyers will be smaller and more qualified.

A healthier housing market with more entry points for Canadians will be invaluable to the economy and the financial wellbeing of homeowners. 

Protection for Borrowers and Lenders

The stress test should protect borrowers and lenders from defaults and situations that could financially harm either side. This was a necessary step to make sure that borrowers are vetted prior to approval and that lenders can provide a loan with some reassurance that market volatility will not be a hindrance.

Don’t let the stress test stress you out. Try viewing it through a positive lens as it can help all parties. Contact us to learn more or to start the mortgage pre-approval process.

Stress testing is a risk management tool that tests the ability of borrowers to withstand an interest rate hike. When the Federal Government implemented a stress test in 2017, people started searching for alternative methods to secure a mortgage and different ways to enter the housing market.

For a mortgage application to be approved, the applicant must be able to carry a loan with an interest rate around 5%, even though the actual rate will be lower. This will reportedly block 50,000 Canadians from homeownership and has forced many to become more creative and prudent.

Alternative Lenders

In their pursuit of homeownership, people have been ignoring banks in favour of alternative lenders whose approval process is less stringent and they are not as tied to the Bank of Canada. There’s a lot of value to non-traditional lenders.

People must cast a wider net as they try to secure a loan. The strategy is to meet with different lenders to determine who has the most favourable terms and offers you the best chance at approval. They can offer better rates, and in some instances, are more open to negotiating terms.

Other Options

Mortgage stress testing isn’t going away, in fact, the Government and the Bank of Canada might implement more regulations to stabilize the market and prevent borrowers from defaulting on loans. To counteract this, borrowers can take certain measures to make their mortgage applications more attractive.

A higher down payment and paying down your debt can help your application withstand a stress test. Additional assets can also help. If you are looking to get a mortgage for an investment property, then partner with an experienced person who has good credit and can increase the down payment. Granted, some applications with big down payments will be rejected but it can still make an application more appealing in the eyes of lenders.

There are no tricks to beating the stress test or getting approved for a mortgage in 2018. For those looking to sell their home or enter the market, you need to review your situation with a mortgage specialist and determine if now is the right time. The other option is to simply wait a bit so that you can decrease your debt, increase your salary and assets and present a better application.