Turning Debt Hurdles into Pathways

Written By Jessica Yang

Alternative Lending Case Spotlight

Neighbourhood Holdings

Turning Debt Hurdles into Pathways

Have clients struggling with debt and financial distress? We might be able to help!

Scenario

Picture this: Joe is a retired individual relying solely on his pension for income. Life was rolling along until he hit a rough patch. Joe encountered severe medical issues, which not only affected his health but also his finances. Medical bills started piling up, and with limited income, Joe resorted to using consumer credit to cover these costs.

Before he knew it, he was trapped in a vicious cycle of debt. His credit score plummeted to the high 400s – a beacon score signalling financial distress. Managing consumer debts alongside his existing mortgage became an uphill battle. Imagine the stress, the constant juggling – it was a financial nightmare.

Solutions

This is where our expertise as an alternative lender came into play. We knew we had to act swiftly to provide Joe with payment relief. After assessing his situation, we decided to refinance his condo in Burnaby, BC.

The plan was straightforward yet effective: refinance to 20% Loan-to-Value (LTV). This move wasn't without its challenges, given Joe's low credit score and the need to pay off an existing private lender. To offset these risks, we included an additional 1% lender fee. The result? We managed to slash Joe’s total monthly payments by over $500.

Imagine the relief! This wasn’t just about numbers; it was about giving Joe a fresh start, a chance to breathe easier without the crushing weight of monthly dues.

Note:

The case study above is for educational purposes only, with the intended audience being licensed mortgage brokers.

Jessica Yang
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