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Mortgage With 100% Rental Income Qualified
These lenders allow borrowers to include up to 100% of the rental income towards the borrower's debt-to-income ratio.
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Interest-Only Mortgage
An interest-only mortgage is helpful for borrowers going through a tight cash flow for a temporary period. For example, real estate investors who are buying and flipping property would benefit from this mortgage by focusing their budget on the redevelopment during the renovation period instead of paying down the mortgage principal amount. Most borrowers who take advantage of this alternative mortgage solution will switch to a conventional mortgage term at the end of the term so they can start paying down the principal mortgage amount.
A specialty mortgage product from alternative lenders allowing borrowers to pay only the interest portion of the mortgage throughout the entire Term.
There are a few things that borrowers would want to know more about this alternative mortgage solution. Contact your local mortgage broker or book a free consultation with one of ours for more details.
Improve Cash Flow
By paying only the interest portion of the loan throughout the Term, borrowers can reallocate their cash flow to other uses instead of paying down the principal mortgage amount.
Bruised Credit Not A Problem
Borrowers with bruised credit can qualify for this alternative mortgage solution as long as they have reasonable explanations and recourse for improving their credit score going forward.
Exit Strategy
Most borrowers who are using this alternative mortgage solution for flipping real estate properties will switch to a conventional P+I mortgage product at the end of the Term as their exit strategy.
Trusted Lenders
At Richmond Hill Mortgage Broker, we work with lenders who are reputable and have established outstanding levels of customer service, integrity, and compliance with regulatory authorities.
What to Know About Interest-Only Mortgage in Richmond Hill
Interest-only mortgages are one of the more challenging products to get preapproved for. However, they are relatively simple to understand. Before qualifying for an interest-only mortgage, you must know a few key things.
First, you need to get preapproved. You can get preapproved by sending your information to a mortgage lender with access to interest-only mortgage products. This broker will look at your financial records to see if you qualify for the interest-only mortgage.
If you're considering buying a home or a rental property, you'll need to get preapproved for a mortgage. This is a process in which a mortgage broker and lender will review your financial information and provide you with a loan amount you qualify for. It's a good idea to get preapproved before submitting any offer to purchase, so you know how much you can afford to spend. Once you have your preapproval, you can confidently start your home search.
The mortgage preapproval process is also helpful if you are refinancing by comparing quotes from multiple lenders to determine the most suitable one. By getting preapproval, you will better know how much you can borrow and at what interest rate. This can save you time and hassle when shopping for a new mortgage.
Once you have decided on the best interest-only mortgage, you'll need to ensure you have enough money saved to pay off the outstanding balance after your initial interest-only period is up. Ideally, it should be 10% of the entire loan. Finally, you must ensure you have enough income to pay off the loan in the interest-only period without going into the negative.
It's essential to have enough money to pay off your mortgage when your initial interest-only period is up. Otherwise, you'll end up owing a lot of money and could end up in foreclosure. So make sure to create a budget and stick to it so that you can save up enough money to pay off your mortgage as soon as possible.
FAQ on Interest-Only Mortgages
Why Would You Do an Interest-Only Mortgage?
You have many options when you decide to get approved for a mortgage. One of the options is an interest-only mortgage. This is an excellent option for those looking to keep the mortgage payment amount as low as possible. However, it's only recommended if you have the right exit strategy.
Interest-only mortgages have many differences from regular mortgages. Before applying for an interest-only mortgage, you should be clear about the differences. The most significant advantage of an interest-only mortgage is that the monthly payments are much lower because you only pay for the loan's interest portion every month until the term reaches maturity. This is the most significant advantage compared to the regular mortgage, which automatically requires a portion of the principal and interest to be paid regularly each month.
Many real estate investors choose the interest-only mortgage because it allows them to increase their rental properties' monthly cash flow. This extra cash can be reinvested into other areas or used to make mortgage payments more manageable.
However, an interest-only mortgage does not mean you cannot pay the principal balance during the mortgage term. You can pay the principal amount during the term, but it is not required. However, there is a limit to how much the principal amount you can pay down during the term, and any amount exceeding the limit will incur a prepayment penalty from the lenders.
Remember that the mortgage principal and interest are all due at the end of the term. So be sure to have enough funds to pay off the entire principal amount with interest by the end of the term to avoid defaulting on the loan.
Also, interest on an interest-only mortgage is usually higher than on a regular mortgage.
Justin W, Richmond Hill
As a first time home buyer I was very nervous about buying a home. The professional staff at Matrix Mortgage Global took the time to answer my questions even after hours. I was very pleased with the service and how I was treated.
Jignesh S, Toronto
I'm a self-employed cab driver. I was devastated when my bank, with whom I've been banking with for years turned me down for a mortgage. My business is mainly cash, and I didn't meet the bank's criteria for proving my income. I found Matrix Mortgage Global online and decided to give them a call. I was surprised that I got approved. I thought that if my bank turned me down everyone would. Thanks!
Andrea C, Markham
I had 2 yrs left on my consumer proposal, with the 2nd mortgage offer by Matrix Mortgage Global I was able to pay off the proposal and re-establish my credit
You Can and You Will Be Approved
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Since est. 2008
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Serving Richmond Hill, and neighbouring cities in Ontario.
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2018-2022 Mortgage Brokerage Of the Year from Canadian Mortgage Awards
You deserve a mortgage that is customized to you.
And there is a mortgage brokerage that believes that too.
One that has been helping clients get approved since 2008.
Over $2.3 billion of mortgage funded in history working with you.
Matrix Mortgage Global mortgage agents and brokers understand the significance of responsible borrowing and lending. Unfortunately, it was an expensive lesson many learned from the Global Financial Crisis in 2008 that happened because irresponsible mortgage lending qualifications were unchecked.
Enjoy the peace of mind from knowing that you are working with someone who has a deep understanding of the mortgage industry and will work smart to get you the best possible deal.
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Alternative Mortgage Lenders in Canada
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But it doesn’t mean you can’t get professional help to qualify.
Reasonable mortgages are accessible to borrowers today.
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Better Options with
ALTERNATIVE MORTGAGE SOLUTIONS
Alternative mortgage solutions give borrowers more options and might be a better fit for those who don't meet the bank's standards.
These options might have higher interest rates or different terms, borrowers just have to take them into account and come up with an exit strategy that is affordable in the short and long term.
Work with the right lender for your situation, so you can get approved for the best mortgage.
A specialty mortgage product from a Tier-1 Bank in Ontario allows borrowers to get their deposit amount out of the property on the Closing Day.
A specialty product from alternative lenders allows borrowers to lower their mortgage payment amount by extending the amortization period, up to 40 years.
A specialty mortgage product from alternative lenders allowing borrowers to pay only the interest portion of the mortgage throughout the entire Term.
Don't settle for lenders who would only recognize up to 75% of the rental income to offset your debt-to-income ratio. Ask for 100% of the rental income to be qualified.
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