Net Worth Lending - Part 1

A New Way of Thinking About Mortgages

For many BC homeowners, securing a mortgage isn’t just about having a steady income stream. Lenders who take a more holistic view of your financial situation can provide more flexible options. This approach allows you to leverage the wealth you’ve accumulated over time to secure a mortgage, even if your current income doesn’t perfectly fit the traditional criteria.

Lenders with more common-sense practices understand that your net worth is a valuable indicator of your ability to repay a loan. If you have significant assets such as savings, investments, real estate, or other valuable properties, these can work in your favour when applying for a mortgage. These alternative lending options offer a more well-rounded evaluation of your financial standing, ensuring that you’re not limited by what the banks typically offer.

The Benefits of Net Worth-Based Lending

1. Flexibility – Lenders who focus on your net worth can often provide more tailored mortgage options. Whether you’re self-employed, have irregular income, or have substantial assets but lower income at the moment, these loans give you more flexibility than traditional banks.

2. Access to Better Rates – Strong net worth can work in your favour, potentially giving you access to better interest rates than some high-risk loan options.

3. Common-Sense Approaches – With alternative lenders, you’re not bound by rigid policies that only consider one side of your financial story. A lender who looks at both your income and net worth will understand that a diversified financial portfolio can demonstrate stability, even when your income might not be high enough for traditional bank criteria.

Call today to discuss your options: 604-710-8934