The Situation
A year after a private first mortgage had cleared $236,000 of consumer debt for a retired couple in BC, the private term was ending. Their credit scores had climbed from the 400s to 734 and 648, and their children had repaid about $65,000, which sat in savings.
The Challenge
Pension income with two part-time jobs still put the ratios near 47%, above a bank's usual line, and the written-off accounts were only a year behind them.
The Solution
We took the file to a major bank, a prime lender, with the whole story documented: the consolidation, twelve months of clean private-mortgage payments, the repayments from family and the balances now at zero. The part-time and delivery income were documented from two-year averages. The bank approved a residential mortgage of about $260,000, 57% of the home's value, on a three-year fixed term with a 25-year amortization, paying out the private lender.
The Outcome
Private to prime in twelve months. The couple carries one bank mortgage at bank pricing, about $65,000 in the bank, and no consumer debt, which is what the private year was for.