Ontario, British Columbia & Nova Scotia.
Leaders in the Canadian Mortgage Market.
What is a Residential Mortgage?
Homeowner Mortgage Solutions.
A residential mortgage simply refers to a mortgage that is secured against residential real estate for the purpose of purchase, refinancing, or accessing equity. The purchaser or owner of the property also referred to as the borrower or guarantor is responsible for making timely mortgage, property tax, and condominium or strata fee payments (if applicable), maintaining adequate property insurance and taking care of the property. There are three primary sources of residential mortgage lenders, each with different lending programs and qualification requirements.
Traditional Mortgage Lenders.
Learn About Residential Mortgage Lenders.
A traditional residential mortgage lender generally refers to a mortgage that is provided by a provincially or federally regulated financial institution. These lenders include domestic and foreign Schedule I, Schedule II and Schedule III Banks as well as Monoline Lenders & Credit Unions. Each has its own respective regulators and government-prescribed underwriting policies that must be adhered to. Some of which include rigid debt service ratio requirements, mortgage stress-test policies as well as income, credit and property requirements.
Alternative Mortgage Lenders.
Flexible Mortgage Solutions.
In the context of residential mortgage lending, alternative mortgage lenders, also federally or provincially regulated, can provide ‘tailored’ mortgage solutions to Canadians that aren’t typically available through traditional mortgage lenders. Alternative mortgage products are niche in nature and are designed for Canadians that are self-employed and cannot illustrate all of their income to traditional standards, have imperfect credit including those with discharged or active consumer proposals or bankruptcies, owe money to the Canadian Revenue Agency, or whose debt service ratios do not conform to traditional lender requirements. It’s important to keep in mind that alternative mortgage lenders are still mandated by government-prescribed underwriting policies however can approve mortgages with greater leniency.
Private Mortgage Lenders.
Want to Learn More about Private Mortgages?
In the context of residential mortgage lending, private mortgage lenders fill the void that has been created by stringent traditional and alternative underwriting policies. This has naturally created a private mortgage market that caters to an incredibly vast Canadian homeowner segment.Private mortgage lenders typically specialize in one or more niche products including mortgage programs for those with bad or unestablished credit, renovation or construction loans, remedies for mortgage arrears, power of sale or foreclosure, programs for properties located in rural or remote locations along with many other situations. It’s important to keep in mind that private mortgages are a short-term product, and similar to how an alternative mortgage has a pricing premium compared to a traditional mortgage, a private mortgage has a pricing premium that accounts for the perceived and actual risk that private mortgage lenders face. Private mortgage lenders are able to self-prescribe their own underwriting guidelines and not all private mortgage lenders are alike. Some have formal income and credit policies and others strictly focus on the equity and marketability the property. DV Capital possesses many years of private mortgage lending and brokering experience throughout Ontario, British Columbia and Nova Scotia.
We are Your residential mortgage experts.
Whether you are a first-time home buyer, a current homeowner looking for replace an existing mortgage, consolidate debt or access your home equity, or a season real estate investor, DV Capital warmly invites you to contact us for a complimentary discussion with one of our licensed mortgage brokers to discuss potential solutions that will cater to your wants and circumstances. We are available 7 days a week and quickly coordinate phonecalls, email and video conference meetings at the convenience of our clients. We look forward to working with you!
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