Institutional & Private Residential Mortgages.
Residential Mortgages.
Leaders in the Canadian Mortgage Market.
Serving Ontario, British Columbia & Nova Scotia.
What is a Residential Mortgage?
Homeowner Mortgage Solutions.
Residential mortgages are loans secured and registered against a residential property, such as a detached dwelling, condo or strata unit, or cottage. Residential mortgage lenders provide homebuyers, homeowners and real estate investors with mortgage financing to purchase, refinance, or access their equity. There are three primary categories of residential mortgage lenders: traditional (A-lenders), alternative (B-lenders) and private mortgage lenders. The main difference between said lenders is that OSFI-regulated lenders must abide by government-prescribed best practice underwriting policies and, thus, can only provide financing to borrowers with ‘check-the-box’ income and credit profiles. Most alternative mortgage lenders are also OSFI-regulated and have more flexible underwriting guidelines and customized mortgage programs that cater to different borrower profiles, including those who are self-employed or have imperfect credit. Private mortgage lenders are relatively the most flexible with approving mortgages as they self-prescribe their underwriting policies, generally take on greater risk than traditional and alternative lenders and charge interest rate premiums.
Traditional Mortgage Lenders.
Learn about 'a Lender' mortgages.
Traditional mortgage lenders provide residential mortgages to qualified homeowners, homebuyers and real estate investors looking to purchase, refinance or access equity. Examples of traditional (A-lender) mortgage lenders include federally and provincially regulated lenders, such as domestic and foreign Schedule 1, 2, and 3 Banks, Monoline Lenders and Credit Unions. Most traditional lenders provide default-insured mortgage financing (mortgages that are insured by CMHC, Sagen or Canada Gauranty), mortgages to purchase residential real estate less than $1M with down payments as little as 5%, but less than 20%, as well as conventional mortgages, allowing purchasers to buy real estate with a minimum 20% down payment, or refinance their residential real estate up to 80% of the property’s appraised value. Traditional mortgage lenders must abide by stringent Government-prescribed underwriting guidelines and impose policies surrounding credit scores and history, employment and income, debt servicing ratios and stress testing. In turn, borrowers that ‘check the boxes’ are candidates for the most competitive interest rates in the Canadian Mortgage Market. Given the increase in real estate values across Canada, income not rising alongside the cost of living, self-employed individuals who can’t illustrate their income to bank standards or those with extended or imperfect credit, qualifying with traditional lenders is no easy feat. DV Capital’s broker advisory department helps those who qualify for traditional mortgages secure competitively low-rate mortgage solutions across Ontario, British Columbia and Nova Scotia.
Alternative Mortgage Lenders.
Learn about 'B Lender' mortgages.
Alternative mortgage lenders, often referred to as B-lenders, also federally or provincially regulated, provide a valuable source of mortgage financing for Canadians with profiles or situations that traditional (A-lenders) can’t assist with. Although the majority of alternative mortgage lenders are also OSFI-regulated, they have greater tolerance for credit risk and have crafted specialized mortgage products that cater to individuals and situations, including self-employed mortgage programs to assist business owners who cannot demonstrate their income in a manner consistent with traditional lender requirements, individuals with thin or imperfect credit and have potentially faced a bankruptcy or consumer proposal, individuals with debt service ratios that exceed traditional lender thresholds, individuals who owe money to the Canada Revenue Agency for unpaid income taxes. It’s important to note that most alternative mortgage lenders are still mandated by government-prescribed underwriting policies, making it challenging, at times, for borrowers trying to position themselves between traditional and private mortgage financing. DV Capital provides a vast range of alternative mortgage products to homeowners, homebuyers and real estate investors looking to purchase, refinance or access equity across Ontario, British Columbia and Nova Scotia.
Private Mortgage Lenders.
Want to Learn More about Private Mortgages?
Private mortgage lenders are a growing source of capital in the residential mortgage market and fill the void created by stringent traditional and alternative mortgage underwriting policies. Unlike traditional and alternative mortgage lenders, private lenders are not OSFI-regulated and need not comply with government-prescribed underwriting guidelines and best practices. Mortgage Investment Entities (i.e. Mortgage Investment Corporations) and Individual Investors (i.e. High Net Worth Individuals) are the primary sources of private mortgages. Private mortgage lenders have different strengths and focus, and not all private lenders are alike; some have formal income and credit policies, while others strictly focus on the equity and marketability of the real estate asset. Private lenders have different policies and appetites for property types, locations and conditions, loan purposes, loan-to-values, interest rates, client profiles, minimum and maximum loan amounts, documentation requirements, turnaround time, and terms and conditions. It is imperative for those considering a private mortgage to align themselves with a licensed mortgage firm, such as DV Capital, to help them understand the intricacies and fine print associated with private mortgage borrowing. 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, financial distress remedies for mortgage arrears, power of sale or foreclosure, programs for properties located in rural or remote locations, along many other situations. Private mortgages are short-term products; similar to how alternative mortgages have risk-adjusted interest rate premiums compared to traditional mortgages, private mortgages have interest rate premiums accounting for additional layers of risk associated with the mortgages they provide. DV Capital has spent many years originating, underwriting and funding millions of dollars in residential private mortgages. For those exploring private mortgage options, including purchasing, refinancing, accessing equity or building residential real estate, DV Capital will assist you across Ontario, British Columbia and Nova Scotia.
Apply for a residential Mortgage.
We are Your residential mortgage experts.
Whether you are a first-time home buyer, a current homeowner looking to replace or refinance an existing mortgage, consolidate high interest debt or access your home equity or a seasoned real estate investor, DV Capital warmly invites you to contact us for a complimentary mortgage discussion with one of our licensed residential mortgage brokers to discuss potential solutions that cater to your wants and circumstances. We are available 7 days a week and quickly coordinate phone-calls, email and video conference meetings at the convenience of our clients. We look forward to working with you and helping you accomplish your mortgage goals, no matter how challenging or if you’ve been turned down elsewhere. DV capital facilitates residential mortgage financing for owner-occupied and tenanted properties vastly ranging from detached homes to condominium and strata units to mobile homes on leased land to cottage properties on islands with only water-access. DV Capital helps homeowners and real estate investors finance real estate throughout urban, suburban and rural locations in Ontario, British Columbia and Nova Scotia.
Documents for a residential mortgage.
Residential mortgage document checklist.
The documentation to support a residential mortgage application may include the following. DV Capital understands the importance of a simplified process and advises its clients on which documents are required based on their residential mortgage requirements. These documents will allow DV Capital to conduct a preliminary underwriting review based on their many years of experience, knowledge of lender guidelines and how to represent their client’s mortgage financing requirements accurately and efficiently. The reality is that mortgage lenders, including private mortgage lenders, expect transparency and disclosure from their borrowing clients. Candidness helps clients obtain approval options and potentially better terms; in reality, provided sufficient equity, there are approval options for clients even if they’ve been turned down elsewhere.
- DV Capital Mortgage Application
- Agreement of Purchase and Sale & MLS Listing
- Existing Mortgage Statements
- Employment & Income Documents
- Property Tax Statement
- Home Insurance
- Potentially, CRA Documents
- Property-Related Documents (i.e. Well Water Test)
- Photo Identification
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