It’s tough to get a mortgage these days. New and existing clients have been calling non-stop letting me know that they’ve been turned down by their bank. It’s upsetting – but I must say, it’s not surprising.
Mortgage lenders are under an enormous amount of pressure to cut back on approved mortgage loans. Why? The government is desperate to slow down rising home prices, so they use their influence over the Big 6 Banks to turn down the heat.
But here’s the thing: you have options. You don’t need a Big 6 Bank to get the mortgage you need.
What Are My Options?
People tend to think that if RBC or CIBC turns them down for a mortgage, then they simply can’t get a mortgage. This is simply not true. There are tons of alternative solutions that aren’t as widely advertised as mortgage products from massive banks.
Smaller banks, credit unions, trust companies, and other non-traditional lenders are more than viable options for securing a mortgage. These institutions are filling the gap left by an ever-tightening mortgage landscape laid out by our federal government.
Should I Just Wait?
If you’re waiting for mortgage rules to loosen up, you might be waiting a long time. The government is hellbent on cooling the housing market, and that might not change for a while. I do agree that housing prices are out of control. However, turning off the tap has left thousands of Canadians without access to the money they need.
It doesn’t matter what you need the money for. Car repairs, a new roof, a kid’s education, maybe even a holiday. We all need money to live our lives, and sometimes that means taking out debt. Don’t be too proud – consider an alternative funding source if you need to free up some cash.
The Bottom Line
You may feel defeated, but you have options. A client I worked with recently was able to secure a $500k mortgage with payments of just $2962/month – and his income was just $80,000. Anything is possible. All you have to do is reach out to a professional to make it happen.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis: 416-224-0114; steve@canadamortgagenews.ca
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- Source: https://canadamortgagenews.ca/2023/06/13/you-dont-need-a-big-bank-to-get-a-mortgage/
