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Alternative Lending

Is your mortgage approval getting declined from the traditional banks? Consider the potential of alternative lending solutions. Mortgage brokers possess access to a diverse network of 40+ lenders who can take a more lenient approach towards minor setbacks, thereby increasing your chances of securing approval. There's lenders that will overlook credit issues, non-traditional income, and more!

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What Does Alternative Lending Mean
 

Alternative lending encompasses a range of non-traditional avenues that connect individuals with the funding they require, by passing the limitations of traditional banking systems. Lenders recognize that each individual's circumstances are unique. These lenders adopt a distinct perspective on lending, allowing them to take a more forgiving stance and overlook minor mishaps. 
 
These lenders will often overlook:
  • Low Credit
  • Consumer Proposals & Bankruptcy
  • Non-Traditional Income (Investments, free-lancing, etc.)
  • Self-Employment
  • Unique Property Types
  • Foreign Income
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When and Why Should I Consider Alternative Lending?

Considering alternative lending is appropriate in various situations and for specific reasons. Here are some scenarios where you should contemplate alternative lending:

  1. Difficulty Obtaining Traditional Financing: If you have been turned down by traditional lenders, such as banks or credit unions, due to factors like credit issues, unconventional income sources, or unique property types, alternative lending can offer a viable solution.
     

  2. Urgent Financing Needs: When time is of the essence and you require quick access to funds, alternative lending options, such as B-lenders or private lenders, often have streamlined processes that allow for faster approval and funding compared to traditional institutions.
     

  3. Flexibility in Terms and Conditions: Alternative lending sources may offer more flexibility in terms of loan structures, repayment options, and eligibility criteria. This can be advantageous if you have specific financial needs or circumstances that do not fit within the rigid guidelines of traditional lenders.
     

  4. Debt Consolidation: If you have multiple debts and are seeking to consolidate them into a single loan, alternative lending options can provide solutions. They may be more accommodating in consolidating various types of debts, such as credit card debt, personal loans, or medical bills.
     

  5. Unique or Non-Standard Situations: If you find yourself in a non-traditional situation, such as being self-employed, having fluctuating income, or lacking a substantial down payment, alternative lending sources may be more understanding and willing to work with you.
     

  6. Access to Specialized Financing: Alternative lending can cater to specific needs, such as financing for real estate investments, renovation projects, or niche industries where traditional lenders may have limited expertise or offerings.
     

  7. Seeking Competitive Rates: In some cases, alternative lenders may be able to offer competitive interest rates and terms that rival or even surpass those provided by traditional lenders. Exploring alternative lending options allows you to compare and potentially secure more favorable rates.
     

Remember that alternative lending options may come with higher interest rates and fees compared to traditional loans. It is crucial to thoroughly evaluate the terms, assess the associated costs, and consider the potential benefits before opting for alternative lending. Consulting with a mortgage broker can provide valuable guidance in determining if alternative lending is the right choice for your specific circumstances.

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