Rental Property Mortgage

Not Big Bank. Not Private. A Smarter Option in Between

Banks declined your next rental property purchase?

Real Estate Investors hit bank rental property limits fast—tight rules on rental income and property count. Most investors end up going to private lenders to fund their next purchase, which can be costly and affect their bottom line. We use investor-friendly B-lenders who assess rent more realistically and support growing portfolios.

Who This is for

Investors looking for more favorable rental income qualification
Investors with multiple rental properties
Investors looking to buy in a holdco
Investors looking to stabilize the 'numbers', to switch to an A-lender

Why the Banks Say No

* They count less of your rental income than you expect, so the math fails.

* Limits on how many properties you can own.

* New landlords or holding companies make banks uneasy.

* Short-term rental income (e.g., AirBnb/Cottage/Seasonal) often doesn’t “count.”

How Alternative B Lenders Help

* They count less of your rental income than you expect, so the math fails.

* Limits on how many properties you can own.

* New landlords or holding companies make banks uneasy.

* Short-term rental income (e.g., AirBnb/Cottage/Seasonal) often doesn’t “count.”

Bank vs Alternative B Lenders vs Private Lenders

Banks:

* most banks only use 50% of rental income

* have strict debt-to-income rules

* want to see rental income declared on income taxes already

* do not consider shor-term rental income

Alternative B Lenders:

* can use 90% to 100% of rental income

* uses rental worksheet for mulitple rentals favorable to investor

* can use 'contributory' income from a person living in the house

* considers short-term rental income (case-by-case)

Private Lenders:

* high fee and rates

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

* does not always offer renewal options

Real Example

A real estate investor has 4 properties of her own and manages another 6 properties under a corporation. She rents out the 10 properties as short-term rentals or to corporate clients staying for months for work. She's only been been in business for 2-years. Her main source of income is from her 4 rentals and she draws dividends from her corporation. She was looking to purchase another property of her own, and the banks declined her due to her income coming from short-term rentals.

With a Mortgage Solution through an Alternative B Lender

* They were able to give her approval up to 80% of her purchase price

* They were able to use her 2-year average income on the short-term rentals as per her T1s

* They were able to use her 2-year dividends she is drawing from her corporation

Long-Term Plan

This Mortgage Solution can be used to grow her real estate investment portfolio

Over time, you can:

* Grow her rental business and structure her income to be more favorable to the banks

* Transition her Alternative B Mortgages to bank prime mortgage, one she shows long-term rental stability

Common Mistakes to Avoid

Going to a private lender right away
Stop growing your real estate portfolio, thinking you do not have options
Missing on opportunities, thinking you need to wait for years to buy

Why work with a Mortgage Broker who specializes with Rental Properties

A broker who specializes in alternative rental property financing:

* knows alternative mortgage solutions that can help you grow your rental property portfolio

* helps you explore less costly financing options to help your bottom line

* help you plan a long-term strategy that is sustainable

Apply Now

Get Pre-Approved in 30 Seconds Or Less!

Complete Your Purchase Application Now!

Explore Your Renewal or Refinance Options Today!

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.