The Situation
A couple with four children between them, each from an earlier relationship, bought a detached home in Alberta for about $615,000 in a private sale. One partner's divorce years earlier had ended in a bankruptcy, discharged in 2019, that included the previous mortgage.
The Challenge
A discharged bankruptcy with a 624 score sat beside a strong file: the other partner's bookkeeping corporation, a Red Seal tradesperson's income near $98,000, and child benefits. A bank reads the bankruptcy first.
The Solution
We placed the residential mortgage with an alternative lender under its stated-income program: the bookkeeping company's twelve months of bank statements, about $157,000 gross, were read with a 10% expense allowance, the trades income was documented from pay stubs, and the private sale was supported with an appraisal. The lender approved $492,000, 80% of the price, on a one-year closed term and a 30-year amortization, with ratios near 20% and 32%.
The Outcome
The family moved in on schedule with 20% down and no bank decline on the file. The one-year term is the plan: another year of clean payments on the new credit card and the mortgage, then a refinance to a bank once the bankruptcy is further behind them.