Equity Based Mortgages

A lending hand, from your home.

If you want to buy a home and need a mortgage, but face challenges with higher debt ratios, a damaged credit history, or in providing traditional income sources — you may still have options.

Our friendly, expert True North Mortgage brokers know the requirements and regulations, and can take you through your choices, clearly outlining details to make your decision easier.

What is an equity-based mortgage?

This type of mortgage bases your loan qualification on the value of the property and its potential marketability, instead of using traditional income, credit and other property criteria for qualification. A larger down payment can also improve lending qualifications for this type of mortgage.

Your mortgage solution will likely be through an alternative or private lender, as traditional big banks want to tick more boxes for a mortgage application.

Your equity-based requirements for purchasing a home

• A minimum 25% down payment is required
• You may be able to borrow up to 75% of the home's value
• Quality of the real estate property and common-sense underwriting are factors
• Location and marketability of the property are also significant factors
• Higher rates and fees typically apply, depending on the credit history
• Files are reviewed on a case-by-case basis
• A larger down payment may be required

Do you need to refinance your mortgage despite bad credit?

A home equity loan to consolidate debt can lower interest payments overall and help you improve your credit score.

• At least 35% equity in your current home is required
• Location and marketability of the property are essential factors
• Higher rates and fees typically apply, depending on the credit history
• Files are reviewed on a case-by-case basis
• Depending on the specifics of your file, a decrease in LTV (loan-to-value), meaning an increase in your home equity, may be required

We can help answer your questions about getting approved — fill out our form today.