Securing a Dream Home: Alternative Solutions for Irregular Income
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Alternative Lending Case Spotlight Neighbourhood Holdings |
Securing a Dream Home: Alternative Solutions for Irregular Income
Situation
A mortgage broker approached us with a client who was purchasing a property and was unable to qualify with the banks due to his irregular income. This was a shock to the client because he had impeccable credit, a long-standing relationship with their bank, and a sizeable downpayment. Fortunately, the client reached out to a broker who could present them with multiple financing options with various lenders.
Solution
Using the market value determined by an approved appraisal, we were able to provide an alternative first mortgage at 65% LTV, which gave the client a mortgage of $483,832 in exchange for monthly interest-only payments of $3,407.
Summary
Neighbourhood’s Purchase Loan enabled the client to secure the home that their family dreamed of.
Notes:
Interest rate was 8.45% per annum, compounded monthly, for a 1-year term. Final APR including applicable fees such as lender, broker, and legal fees was 9.42%.
The case study above is for educational purposes only, with the intended audience being licensed mortgage brokers.