The Process
The first step is to contact us through the contact page or by phone for a free consultation. By answering a few questions regarding your credit quality, your income and the amount of cash or equity available, we will be able to tell which type of lenders are suited for your situation and be able to give you a rough estimate on what you would most likely qualify for.
An application is sent to you if you would like to proceed. The signed application must be sent back along with the requested documentation. The documentation varies between the different types of lenders.
“A” lenders, such as banks, credit unions and monolines (mortgage lenders) that deal with the highest credit quality and income that can be verified through tax returns, require the most comprehensive documentation.
“B” lenders which deals with clients who just falls outside of the bank’s box, require a moderate amount of documents.
“C” lenders, which are the home equity/private lenders, require the least amount of documents because they mainly rely on the equity of the property.
After analysing the application and all the documentation we will submit the application to the appropriate lenders.
We will bring you the best offers and discuss the terms with you.
If you would like to proceed, then you will sign a commitment letter confirming your intent.
The Fees
Fees will depend on the type of lenders you end up using.
For “A” lenders there are no lender fees involved. The same as if you went into a bank, but with Alternative Lending.ca you’ll get better service and better advice and better rates.
For “B” lenders the lender fee is in the range of 0% to 2%. Considering CMHC charges an insurance premium of 3.3% for some self-employed people with 20% down payment and “B” lenders do not charge an insurance premium at all, you may not be paying much more through a “B” lender.
For “C” lenders the lender fee typically is around 2% to 4%, but it can be more. The fees are taken from the proceeds of the loan so it is never paid out of pocket.
We will consider all the possibilities and give you the lowest cost option. Note when comparing mortgages, it is important to look at the total cost of the loan rather than the fees, because sometimes it is cheaper to pay a fee upfront but get a lower rate.
Contact us here if you have any questions or would like to start an application.
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