We see a story – stories

Manjit*, an engineer from South Asia

Every year, thousands of newcomers take their first steps to settling in Canada – and many of them dream about buying their first home in their new communities.

This includes Manjit, a permanent resident in Alberta. Originally an engineer from South Asia, he had sold his property in his home country before moving to Canada to use as a down payment for a house in Calgary.

However, Manjit found that getting a mortgage from a traditional lender was more challenging than he anticipated. Having only recently been hired as a warehouse worker, with no credit history in Canada and an extended debt-to-income ratio, traditional lenders were not able to offer him a mortgage solution. Given these circumstances, Manjit decided to go with a mortgage from a private lender, which had a high commitment fee and higher interest than a traditional mortgage lender.

By the time his private mortgage was up for renewal a year later, Manjit had taken significant steps to improve his situation. He was able to increase his credit score, and while his debt ratio was still extended, he shared with his mortgage broker that he was taking extra engineering courses at night in order to re-launch his engineering career in Canada and improve his income. His mortgage broker was willing to listen and brought his unique financial story to us at Home Trust.

Home Trust was able to offer Manjit a combined Classic and Equityline® Visa* solution that allowed him to both improve his financial situation and build his credit score. Because while some saw a mortgage application, we saw his story.

* Based on real customer stories but details altered to protect customer identity.

* Visa Int./Home Trust Company, licensed user mark.

® Registered trademark of Home Trust Company

Phil and Julie*, a retired couple in Kitchener, ON

Navigating homeownership can be overwhelming. While this can include a new purchase, it can also mean choosing the right lender for your financial circumstances.

Phil and Julie are a retired couple earning a pension who have owned their home in Kitchener, Ontario for over 15 years. Five years ago, they renewed their mortgage with a private lender, which had a higher interest than a traditional mortgage lender. Eventually, the cost of their monthly debt repayments became unsustainable and they were forced to max out multiple tradelines to service their debt. At this point, they were worried about their financial standing and didn’t understand how having a fixed income could allow them to work with other lenders.

Fortunately, their son learned about their distress and recommended a mortgage broker who was willing to listen. After being turned down by most lenders, the broker brought their unique financial story to us at Home Trust.

Home Trust was able to refinance the deal with a Classic mortgage to pay out their private mortgage and all tradelines, ultimately reducing their monthly debt repayment. Because while some saw a mortgage, we saw their story.

* Based on real customer stories but details altered to protect customer identity.

Claire*, a software analyst in Mississauga

Entering the housing market as a first-time home buyer is exciting, but it can also feel overwhelming. After all, buying a home will probably be one of the largest financial decisions most people will ever make.

This includes first-time home buyer Claire, a new university graduate in the Greater Toronto Area who recently started work as a software analyst at a global tech firm. Looking to buy a newly built condo in Mississauga, Claire was able to offer a 20% down payment by combining savings from a part-time job she had as a student with a financial gift she received from her parents. However, since she also had to start repaying her student loan, her total debt service (TDS) ratio was inflated, and traditional lenders were not able to offer her a mortgage solution.

Fortunately, her mortgage broker brought her unique financial story to us at Home Trust. After listening to her story, we found that, with her down payment, current income and future earning potential, we could be flexible with Claire’s TDS ratio and offered her a one-year Classic solution. Because while some saw a mortgage application, we saw her story.

* Based on real customer stories but details altered to protect customer identity.

Victor*, a self-employed dentist in Richmond Hill, ON

Many Canadians find working for themselves a rewarding way to make a living. However, the variable nature of their income means applying for financing can be more challenging for a self-employed borrower compared to someone who earns a traditional salary.

This includes Victor, a dentist in the Greater Toronto Area. Victor has a thriving dental practice, an excellent credit score, equity in his own home in Richmond Hill and a rental property in Vaughan. In addition to the first mortgage on his home, Victor had a construction loan that he arranged to build his rental property along with second mortgages on both his home and the rental property.

Wanting to streamline his payment obligations, Victor approached his mortgage broker to discuss a new, single loan to pay out the existing construction financing and both second mortgages. Victor also wanted access to the equity in his property in the amount of approximately $350,000 for landscaping and further renovations and to allow for flexible options to invest in his business on an as-needed basis.

However, despite Victor’s high income and considerable property and investment holdings, he did not fit the profile of a “typical” borrower and, as a result, had difficulty securing additional financing for home improvements. As well, the added credit extension would bring his loan-to-value (LTV) ratio to 80%, an amount not typically available from banks.

Fortunately, Victor’s mortgage broker shared his entire financial story with us at Home Trust.  After listening to Victor’s story from his broker, we were able to provide some options to suit his needs. The one he selected after consulting with his broker, was a new first mortgage at 65% LTV and a Home Trust Equityline Visa to take his total borrowing to 80% of the value of his properties. Because while some saw an application, we saw Victor’s story.

* Based on real customer stories but details altered to protect customer identity.