We are now a few months into the new Canadian mortgage rules and can see just how they are affecting everyday people looking for a loan. Already, up to 20% more Canadians are being turned down for mortgages by the banks – and alternative mortgage brokers are stepping in to help. But why is this situation occurring?


The 3 reasons 20% more Canadians are being turned down for mortgages by the banks – and how alternative mortgage brokers can help

1. The new financial stress test

The new financial stress test makes it hard for Canadians to be approved, even for mortgages they can afford. At least, that is true when it comes to major banks. The banks are no longer looking at whether you can make your monthly payments, instead focusing on whether you can well exceed them, which is a challenge for most home buyers, especially first time purchasers.

2. A changing market

Housing supply is increasingly limited in Canada, especially in Vancouver. This is driving prices up – and forcing many people to take out larger mortgages. At the same time, tighter restrictions are being put into place, causing many people to be turned down for the mortgages they need to purchase the properties they want.

3. Lower risk tolerance

Banks and credit unions are showing a decreased risk tolerance in 2018. In fact, many credit unions have voluntarily tightened their rules even though they are not bound by the new mortgage rules.

This is making it difficult for home buyers to find conventional lending options for their mortgages. Thankfully, alternative mortgage brokers are filling in the gap.


How our alternative mortgage brokers can help

At Freedom Capital, we are dedicated to ensuring you always have a lending choice that works for you. Instead of being risk-averse, we focus on common sense lending. That is why our biggest question when we are looking at your mortgage is whether or not you can make your payments – not an arbitrary standard. In addition to looking at your income, we will take your overall financial situation into account and work with you to find a solution to your mortgage needs.  


We are always here for you

If you are one of the 20% of people who have been, or will be, turned down for a loan by a major bank and want to discuss how our alternative mortgage brokers can help you, get in touch with us. We are always ready to show you the options that work in your favour.