What to do when the bank has turned you down for a mortgage

You had it all planned out. You imagined the lifestyle that you would have once you moved into your new home. Maybe you were going to convert part of the basement into the ultimate in-home movie theatre, or perhaps you were going to use the spacious backyard to plant a beautiful garden. On the other hand, perhaps instead you were going to use it to create an income stream to help fund your retirement. Whatever your dreams were, they may feel as if they have been shattered when the bank turned you down for the mortgage. 

If you have been turned down by a bank for a mortgage in the past, you are not alone. This is a trend that has been happening more and more, and especially recently. In January of 2018, the federal government introduced a financial stress test that had to be passed by ‘would-be’ homeowners in order to get a mortgage from a federally regulated lending institution. Add that, housing prices (overall) have been increasing and interest rates have gone up four times in the last 12 months, and you have got a recipe that has made getting into a home much more difficult. 

There is however some good news. Just because it has become more difficult to get a mortgage with a federally regulated lender (a bank), it doesn’t mean you can’t obtain a mortgage at all. There are many reputable private and alternative lenders that can help – and CYR Funding can help you find the one that best suits your needs. 

What makes alternative lenders different? 

When you apply for a mortgage with a bank, the bank requires a lot of documentation and it is that documentation that they will use to make their decision. This can make it difficult for someone who is self-employed and has fluctuating income. Also, it can make it nearly impossible for someone who has had credit challenges in past. 

Alternative lenders look at the big picture. Yes, they want to see documentation as well, but they are also going to look at whether lending you money for a mortgage is going to make sense from an equity or income standpoint. If it does, there is a good chance that you will be approved for a mortgage! Case in point, if you are self-employed, you may be able to use bank statements or company profits to help you back up your application. 

Call CYR Funding when…

… you have been turned down by your bank for a mortgage. Do not let that be the end of your dream for home ownership or for an investment property. We have access to a large pool of alternative and private lenders and will work with you to help you find a match that works for you. Call us today for a free consultation.

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