Financial Reboot

Background

At 35, this client in Guelph finds himself needing to refinance his home to manage debts accumulated from a failed business venture and a personal accident. With a bruised credit history and significant liabilities, he sought to consolidate his financial obligations into a single mortgage.

Financial Details

• Qualifying GDS/TDS: With GDS and TDS ratios at 68.00%, the financial situation was stretched, yet manageable with the right support.
• With a Beacon score of 688, this client has potential to graduate quickly to our Precision Prime product suite.
• Loan Amount and LTV: Approved $375,000 with an LTV of 53.57%, reflecting the value of his home as a financial asset.
• Employment and Income: Employed full-time as an electrician apprentice,  annual income is $46,800, supplemented by contributory income from a roommate and part-time gig as a hockey ref in his community.

The Journey

This client’s determination to regain financial stability is evident as he transitioned from business ownership to a stable employment path. The refinance allows him to consolidate various debts, resulting in significant monthly savings. This financial restructuring improves his immediate cash flow and set him on a path to restore his credit and eventually qualify for a major bank mortgage. This story illustrates the resilience and potential for recovery when having supplementary non-traditional income sources and leveraging home equity.

SCORE Program

This deal would also qualify for our SCORE Program, which means we’d run a soft inquiry after 2 quarters and if the client’s Beacon improved by at least 30 points, we’d drop $500 on the principal. After 4 quarters, we’ll do it again if the Beacon has remained the same or improved further. AND! we’ll quadruple this broker’s MQ Points at the end of the year if they qualify for ICON Innovator status or higher! Qualifying partners earn 20 bps on SCORE Program deals!