Dear Reader,

Let me paint you a picture. You walk into a bank, ask for a mortgage, and they sit across the desk with their arms crossed, nod their heads a few times… and then say NO.

Not because you’re a bad person.

Not because your idea stinks.

But because you don’t fit their precious little box. Maybe your credit isn’t glowing like a saint’s halo. Maybe your income is "too creative." Maybe you had a rough patch. Doesn’t matter.

The big banks? They don’t care. They’re not in the risk business anymore. They’re in the checklist business. And if you’re missing a single tick, you’re out.

But here’s the thing:

There’s always another way.

The world of mortgages doesn’t begin and end at the doors of Scotiabank or RBC. In fact, there’s an entire underground city of money that moves outside those walls. It's called the alternative lending space, and I’m going to give you a guided tour.

THE THREE LEVELS OF “ALT LENDING” – A QUICK AND DIRTY BREAKDOWN

Now pay attention because this is where it gets interesting.

There are three types of lenders you’re going to meet once you leave the cathedral of traditional finance.

1. Alt-A Lenders - The “Diet Coke” of Banks

These guys still wear suits. They’re banks, trust companies, and monoline lenders. They’re legit. Regulated. Clean. But unlike the big boys, they’re willing to get creative.

You didn’t tick every box? No problem.

You’ve got a weird source of income? Let’s talk.

These lenders are like that cool uncle who smokes cigars and wears loafers without socks. They’re still in the family… just a little more fun.

2. MICs (Mortgage Investment Corporations) - The Wolf Pack

Now we’re getting into Money With Teeth.

MICs are groups of investors, real people with real dollars who pool their money and lend it out. They’ve got their own playbooks, their own rules, and they love a deal with meat on the bone.

You might pay a little more in interest, but they move faster and they don’t get spooked easily.

3. Private Lenders - The Cowboys

Last stop on the tour: the Wild West.

Private lenders are individuals or companies who say, “You need cash? Let’s talk.” They don’t care about your beacon score or your NOA from two years ago. They want to know one thing:

Is this deal worth the risk?

If it is, they’re in. Fast.

Yes, the rates are higher. Yes, you’ll pay more in fees. But when everyone else slams the door, these are the people holding the window open.

BUT HOLD ON…

Before you go jumping into the arms of the first person who says yes, stop and ask yourself:

• What’s keeping me out of a traditional mortgage right now?

• Can I fix that in 6 months? 12?

• How bad is my credit, really?

• How much cash am I bringing to the table?

• Is this house worth the higher cost of borrowing?

• Can I afford the monthly payments?

• What happens when this term ends and I need to get out?

This isn’t just about buying a house.

It’s about buying time.

Alternative lenders are a bridge. Not a destination. They help you get in when everyone else says get lost. But the plan - always the plan - should be to get back into the A-lender world as fast as possible.

IF YOU GO ALT, ASK THE RIGHT DAMN QUESTIONS

• What’s the interest rate and what fees are buried in the fine print?

• Are those fees paid up front, tacked on, or yanked from your pocket?

• What’s the penalty if you miss a payment or want out early?

• Are there any prepayment options, can you pay extra without getting punished?

• What happens when the term ends? Is renewal on the table or are you out in the cold?

• And finally, what’s the fine print say when you’re not looking?

Listen.

This stuff isn’t for the faint of heart. But if you play it smart, if you keep your eyes open and your head on straight, alternative lending can be the lifeline that gets you the property, the progress, and the peace of mind you’re after.

Need help sorting through it?

I know this game. I know where the bodies are buried. And I can show you how to walk through this minefield without getting blown up.

Get in touch.

Let’s get your deal done right.

To your next move,
Alan Borcic
Your No-BS Mortgage Broker