Dominion Lending CentresDLCG · #1 for new mortgages · $84.5B in 2025
Case Study · Residential / Alternative

A 574 Credit Score and a Construction Company: A Stated-Income Townhouse Purchase at 80% in Surrey

Our client, a self-employed contractor with a partner and two children, has run their own construction company since February 2019 and in 2025 set out to buy a five-bedroom Surrey townhouse to live in, priced at $890,000.

Closed in 2025 · Published October 18, 2026

  • Residential
  • Alternative
  • Purchase
  • Self-employed
  • Business-owner
  • Stated-income
Purchase price
$890,000
Mortgage
$712,000
Loan-to-value
80%
Credit score
574
Rate in 2025
about 6.2%, two-year fixed

The Situation

Our client, a self-employed contractor with a partner and two children, has run their own construction company since February 2019 and in 2025 set out to buy a five-bedroom Surrey townhouse to live in, priced at $890,000.

The Challenge

Minor late payments during the partner's medical issues and a collection the client had not known about had left the credit score at 574, and the income runs through the client's own corporation.

The Solution

In 2025 we placed a mortgage of about $710,000 with an alternative lender under its stated-income program, 80% of the price, on a two-year fixed term at about 6.2%. The lender read 12 months of business bank statements, about $330,000 in gross income, and qualified the client on $260,000, at debt-service ratios of about 23%. The client was paying the collection off in full.

The Outcome

The family moved in, qualified on what the company earns.

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A family home bought on business income. See what your own down payment and income support.

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Income & debts
Monthly liabilities

How lenders count these: car loan = actual payment; credit cards + unsecured personal LOC = 3% of balance each; student loan = 1–1.5% of balance even on a $0 plan.

Mortgage terms
Amortization
Term
Rate type
Housing carrying costs (monthly)

Heat: CMHC standard $100/mo. Condo: only 50% counts toward your housing ratio.

Max purchase price
$738,567
$638,567 mortgage + $100,000 down · limited by down payment
Total monthly debt (stress-tested)$4,550

Qualified at 6.50% (OSFI B-20 stress test).

Two ways to buy

Same income, same down payment — two strategies. Insured pricing assumed ~0.25% below conventional.

Conventional
20% down (uninsured)
$500,000
Down: $100,000 (20.0%)
Mortgage: $400,000
Rate assumed: 4.75%
Monthly payment
$2,075/mo
Principal & interest at 4.75% over 30-yr amort
Saves $19,796 in CMHC premium
− Extra interest @ +0.25% over 5-yr term: $4,750
Est. net savings: $15,046

Limited by 20% down rule — extra income capacity is unused.

Insured
Less than 20% down (CMHC-insured)
$738,567
Down: $100,000 (13.5%)
Mortgage: $638,567
Rate assumed: 4.50%
Monthly payment
$3,320/mo
Principal & interest at 4.50% over 30-yr amort
+ CMHC premium: $19,796 (financed)
Total loan w/ premium: $658,363
30-yr insured amort (first-time buyers / new builds only) adds a 0.20% premium surcharge — not included above.

Limited by income — your cash covers more than the minimum down at this price.

What this calculator does that most don't
  • Models liabilities the way lenders actually do: credit cards at 3% of balance, student loans at 1–1.5% of balance even on $0 payment plans
  • A multi-property builder that applies 100% rental add-back to income and full carrying costs to TDS — portfolio buyers get real numbers
  • Compares insured vs conventional side by side, netting the CMHC premium saved against the extra interest of the higher conventional rate
  • Discloses the exception ratios brokers actually place files at: A-lenders to 50/50, alternative lenders to 60/60 — numbers no bank calculator will print
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Contract vs stress-test payment

Lenders qualify you on the taller bar — even though you actually pay the shorter one. That's the OSFI B-20 stress test in one picture.

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Exceptions — you may qualify for more▾
  • • Conventional (A-lender) — strong files: as an exception, may be considered up to 50% / 50% GDS / TDS.
  • • Alt-lender (minimum 20% down): up to 60% / 60%, and even higher at ≤65% LTV.
  • • Insured deals (< 20% down): hard capped at 39% / 44% — no exceptions.

This calculator shows the standard 39/44 case. Exceptions depend on file strength and lender — get in touch to find out your true qualification.

Questions and answers

Questions about this file

Can you buy a home with a 574 credit score?+

This client did, in 2025: an alternative lender's stated-income program financed a Surrey townhouse at 80% of the price, $712,000, with a credit score of 574.

How do self-employed contractors qualify on bank statements?+

In this 2025 file the lender read 12 months of business bank statements, about $326,000 in gross income, and qualified the client on $260,000.

What caused the low credit score?+

Minor late payments during the partner's medical issues and a collection the client had not known about. The client was paying the collection off in full.

How long had the client been in business?+

Since February 2019, running their own construction company, with the income running through the client's own corporation.

What were the terms?+

$712,000 on a two-year fixed term at about 6.2% in 2025, at debt-service ratios of about 23%.

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