Lower Income Mortgage

Bank-Alternative ("B") Mortgage Solutions for Real People in Ontario

Lower household income? We may have another option for you.

Many people believe they cannot get a mortgage because their income is too low—and if that’s you, you’re not alone.

In Ontario, banks follow strict income rules that don’t work for everyone. But there are Mortgage Solutions through Alternative B Lenders that offer more flexible guidelines and focus on your overall financial situation—not just your income on paper.

You will need a minimum of 20% down payment or 20% equity to qualify for these options.

Who is This For

Lower Income Couples
Single-Income Households
A spouse looking to buyout the other after a separation/ divorce
Self-employed individual not showing a lot of income on paper

Why Banks Say No

Banks require:

* Strong income

* Stable employment

* Low debt levels

This makes it hard for many people to qualify.

How Alternative B Lenders Help

Alternative B Lenders provide flexible Mortgage Solutions.

They can:

* Use longer amortization to lower payment to help you qualify (some, up to 40 years)

* More flexible income guidelines for self-employed

* Accepts higher debt levels

With 20%+ down or equity, many borrowers can qualify.

How we can help with Alternative 'B' Lenders

Alternative B Lenders provide flexible Mortgage Solutions.

They can:

* Use longer amortization to lower payment to help you qualify (some, up to 40 years)

* More flexible income guidelines for self-employed

* Accepts higher debt levels

With 20%+ down or equity, many borrowers can qualify.

Bank vs Alternative B Lenders vs Private Lenders

Banks:

* strict debt levels

* max 30-year amortization

* rigid income qualification

Alternative B Lenders:

* higher debt level

* can use 35-year amortization (sometimes even 40-year)

* more flexibility on income qualification

Private Lenders:

* high rates and fees

* interest only payment

* short-term solution (1 to 2 year max)

Real Example

A client makes about $48,000 a year. She owns a 2-bedroom condo in Toronto valued at $495,000. She had a 1st and 2nd mortgage totaling $170,000 plus credit card and line of credit debt totaling $100,000. She had 640 credit score due to high credit balances. The bank declined her due to insufficient income to consolidate all her debts.

With a Mortgage Solution through an Alternative Lender

* consolidate all the debt into one manageable payment

* use 35-year amortization to lower her monthly payments

* add her retired mom who lives with her as a guarantor to support the application

* save her over $10,000 a year in interest costs

Long-Term Plan

This mortgage solution helps you manage your finances and have peace of mind

Overtime, you can:

* Paydown your debts

* Improve your credit score

* Bring back your mortgage to the bank (A Lender)

Common Mistakes to Avoid

Not explore options after bank declines you
Go straight to a Private Mortgage before exploring Alternative B Lending
Wait till you start missing payments and your credit decreases

Why work with a Mortgage Broker who specializes with 'Lower' Income households?

Alternative B Lenders have different risk appetites, products and policies. Unlike the banks (A Lenders) who generally follow the same rules from the same regulator. A broker who specializes with clients who have 'lower income':

* knows which B Lenders allow for extended debt levels

* is aware of special promos, products and programs of different B Lenders

* knows which B Lenders have the risk appetite for their situation

* help you avoid costly mistakes

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Frequently Asked Questions

What’s the benefit of using a mortgage broker instead of going to my bank?

Banks can only offer their own rules, products, and rates. As brokers, we work with 50+ lenders —so we can shop around for the option that fits your situation, not just one bank’s box.

Why choose Mortgage Wars?

We specialize in non-traditional/Alternative “B” lending. Over the years, we’ve built strong relationships with alternative (and private) lenders and a deep understanding of their products and guidelines. That lets us structure your file the way lenders want to see it—turning real-world situations into real approvals.

What’s the difference between Prime (A), Alternative (B), and Private mortgages?

Prime (A): Bank-type mortgages for people with verifiable income and clean credit.

Alternative (B): For good borrowers who don’t quite fit bank rules—often self-employed or recovering from past credit issues.

Private: Funded by Mortgage Investment Corporations (MICs) and private investors with flexible guidelines—used when A or B won’t work; rates and fees are higher because risk is higher.

Do I really need 20% down or equity for “Alternative (B) Solutions”?

Yes. For purchases you’ll need at least 20% down; for refinances/debt consolidation/equity take-outs you’ll need at least 20% home equity. If you’re unsure where you stand, ask—we’ll run the numbers with you. Reverse Mortgages have higher requirements.

What rate will I get with an Alternative (B) Lender?

Alternative (“B”) rates are based on your full profile—property, equity, income, credit, and purpose. They’re typically around 1% above big-bank rates and well below Private. Reverse mortgages are around 2% higher than regular rates. We’ll shop lenders and present a clear written commitment with your rate, terms, conditions, and all fees so you can decide with confidence—no surprises.

What fees should I expect?

Prime (A) deals: No Broker Fee (lender pays us).

Alternative (B) deals: Expect a 1.0% Lender fee and we charge a flat Broker Fee of $1500 . Other brokers who specialize in Alternative Lending charge on average a 1.0% Broker Fee. Reverse Mortgages have NO Lender/ Broker Fee.

Private deals: Start around 2.0% Lender fees. We charge a flat Broker Fee of $3000, regardless of the size of the mortgage.
*** You’ll also have standard third-party costs like the appraisal and legal fees. We’ll disclose everything up front before you decide.

How fast can I get approved?

Once we submit a complete application, approvals often come back within 24–48 hours. Complex files can take longer, but we’ll set expectations right away.

What is the application process?

Step 1 — Strategy Call
We book a quick virtual strategy call to understand your goals, timeline, property details, and any constraints. We’ll outline the best path and what lenders will look for.

Step 2 — Application & Documents
After the call, we send a secure online application. You submit it and e-sign consent so we can review credit and share information with lenders as needed. You’ll also upload the initial documents (ID, income documents, proof of down payment, and—if refinancing—your mortgage statement/property tax). We’ll give you a simple checklist.

Step 3 — Approval & Appraisal (if required)
We shop lenders and obtain a written commitment outlining rate, term, payment, and conditions. We review it together and, if you’re happy, you e-sign to proceed. If an appraisal is required, we order it at this stage and handle any lender follow-ups.

Step 4 — Lawyer & Funding
The lender instructs an approved real-estate lawyer of your choice. You sign the final mortgage documents (in-office or virtually, where available) and funds are released on completion.