The Situation
The same couple's five-bedroom home in Ontario was worth about $825,000 and carried a bank mortgage and line of credit of roughly $450,000. After a year marked by a parent's illness and a layoff, they owed about $115,000 across cards and loans, and the Alberta presale needed the rest of its down payment within days.
The Challenge
One client is a registered nurse working as a sole proprietor on agency contracts across Ontario, so the income lives in business bank statements, not on a T4; the other had started a new salaried position in June 2024 after months of delivery work. The credit scores, 635 and 558, had not caught up with the recovery.
The Solution
We refinanced with an alternative lender under its stated-income program: twelve months of the nursing business's deposits, about $153,000, with 20% deducted for expenses, plus the new salary of about $119,000, which put the file at roughly a 29% gross and 31% total debt-service ratio. The new residential mortgage, about $619,000 at 75% of value on a two-year fixed term with a 30-year amortization, paid out the bank mortgage and line of credit, cleared every debt but a small student loan, covered the closing costs and released the balance of the presale's down payment for the closing the next day.
The Outcome
Debt-free apart from the student loan, one mortgage at an alternative lender's rate in place of a bank mortgage, a line of credit and a pile of cards, and the Alberta condo completed on schedule the following day. For a self-employed professional, the bank statements are the income, and the stated-income program is what reads them.