A couple in their mid-30s faced mounting financial pressures. Life events—including family health issues and unexpected caregiving responsibilities—forced them to reduce work hours and prioritize caring for elderly relatives. Over time, debts from past relationships and everyday expenses made it difficult to keep up with payments and maintain stability.
When life throws unexpected challenges your way, financial stability can feel out of reach. This client story shows how strategic debt consolidation—supported by MCAN’s SCORE Program—can help restore confidence, cash flow, and credit health.
The qualifying Gross Debt Service (GDS) and Total Debt Service (TDS) ratios were 47.63% / 47.63%. These elevated ratios highlight the financial strain caused by reduced work hours, family health issues, and the responsibility of caring for elderly relatives. Despite these pressures, the clients were able to secure a solution—a true SCORE deal!
Both clients faced significant credit challenges due to past life events and unresolved debts. At the time of application, their credit scores were 451 and 582, reflecting the impact of collections, written-off accounts, and a previously discharged consumer proposal. Importantly, neither had a history of bankruptcy, and both showed a strong commitment to rebuilding their financial health. The debt consolidation allowed them to pay off all outstanding collections and begin their journey toward credit rehabilitation.
The clients were approved for a $403,000 loan with a Loan-to-Value (LTV) ratio of 62%. This demonstrates substantial equity in their home and responsible property management, providing a solid foundation for their financial recovery.
Despite recent setbacks, both clients now have stable employment. One partner works full-time in skilled trades, earning a guaranteed annual income of $66,560. The other is employed part-time in public service, with a two-year average annual income of $11,258, supplemented by family pension contributions. Their current income trajectory is on track to exceed previous years, giving confidence in their ability to meet ongoing mortgage obligations.
Working with their mortgage broker, the couple refinanced their home to consolidate all outstanding debts. The new mortgage provided:
With a loan-to-value ratio well below the maximum allowed and stable, verifiable income, the couple qualified for a one-year closed mortgage. The refinance not only consolidated their debts but also provided the flexibility to care for loved ones and invest in their home’s future.
Their story is a testament to how strategic debt consolidation can restore financial stability, improve monthly cash flow, and set the stage for credit recovery—even after setbacks. It highlights the importance of working with a knowledgeable broker and lender who understand real-life challenges.
Our SCORE Program (Support for Credit Optimization, Rehabilitation and Education) rewards clients who consolidate debt and continue improving their credit profile.
If their credit score improves by 30 or more over the first two full quarters of the term, we’ll pay $500 toward a mortgage payment. We’ll do the same if they maintain or improve further after another two full quarters.
And brokers who qualify for MQ Points payouts will 4x their MQ Points on SCORE deals!
