Banks & Credit Unions

Alternative Mortgage Solutions for your customers who may not fit typical lending guidelines.

Spectrum-Canada Mortgage Services Inc. (Spectrum) is a licensed financial intermediary established in 2000 to provide professional mortgage decline services to Canada’s Banks and Credit Unions and is the leader in accessing, processing and funding 1st and 2nd mortgage products.

Spectrum’s area of expertise is alternative mortgage solutions for clients who fall outside bank and credit union lending guidelines. The reasons for this may include the difficulty in assessing self-employment income; the desire for higher loan-to-value or debt service ratios; or because of past credit problems. But it may also be due to specific ‘A’ market niches which the bank or credit union may be averse to lending in (e.g. multiple rentals, borrowed downpayments, discharged bankruptcies and net worth programs).

Alternative Mortgage Borrower
The alternative segment of the mortgage market, broadly defined, deals with mortgage borrowers who do not meet typical and increasingly conservative bank lending criteria. Reasons may include the difficulty in assessing self-employment income, the desire for a higher loan-to-value ratio or a debt service ratio than the more conservative lenders can approve or because of past credit problems. It may also be a combination of these factors.

Recent changes to Canada Mortgage and Housing Corporation’s (CMHC) mortgage lending guidelines and new B20 legislation governing banks, have further restricted many borrowers’ ability to source mortgage financing from their own Financial Institution creating further opportunities for Spectrum via its bank and credit union Origination Partners.

Lenders in the alternate segment may price their mortgages higher in order to recognize the potential of a higher risk associated with these borrowers.

Alternative Mortgage Solutions Explained

Working with our Bank and Credit Union Partners
Spectrum’s role is to find the best short-term (1 or 2-years) solution to a client’s needs and after 20 years focused on this market segment, we have developed specific systems and processes to achieve that. If the client isn’t eligible for insured rates with their bank or credit union today then for Spectrum it is a two-step process:

  • How do we meet their immediate needs (which may involve a higher rate now)?
  • And how do we get them back to their bank or credit union for best A rates as soon as possible.

The first step in our process is to do a full needs analysis with the client – to understand the clients needs and what they are trying to achieve focusing on both their immediate AND their longer-term goals.

Once we understand that we go away and research ALL of the available lenders in Canada – this may involve working with an external lender or working through our own internal lending division to find the best (and cheapest!) solution. We then present these options to the client to address their immediate and future needs.

Product Availability
Simply put, we can help with anything and everything that doesn’t fit conventional guidelines. With access to a full range of funding sources and options from all available lenders in Canada plus Spectrum’s internal lending programs, we will ensure your client has the very best option available.

Referring Clients to Spectrum
Referring clients to Spectrum is easy. Just complete a Referral Authorization Form for your client and fax or email it to us. We guarantee 4-hour response times and will speak to your client and begin to work with them to research their mortgage financing options.

We recommend a referral authorization is completed up-front for all clients so that if needed you can simply say “we have Alternative Mortgage Solutions to provide a complete range of funding sources and options and I will have someone call you today”. The authorization can then be forwarded to us to begin working with the client.

A dedicated Spectrum Mortgage Advisor will look after your clients and keep you informed on the progress of files. We have very structured Client Management Processes at Spectrum to ensure the best solution for each of your clients.

Our custom portal allows you to view your referred files in real time 24/7 and shows not only file progress but also a history of all of your referred files and upcoming renewals when you have an opportunity to offer conventional financing and re-gain the mortgage customer.

Your dashboard can be accessed (once you have received a username and password) by using the login button at the top of the page or by clicking here.

Immediate benefits of working with Spectrum

  • Simple, single resource for all mortgage declines
  • Full range of funding sources and options (all lenders plus Spectrum’s internal lending programs)
  • Client will have best solution / Referral relationships strengthened & protected
  • Protect your client relationship and 1st mortgage (if there is one)
  • Send file back to you if we identify a way it will qualify for conventional financing
  • Generate referral fee income

Future benefits of working with Spectrum

  • Build next year’s mortgage business
  • Turn permanent decline in to a ‘deferred approval’
  • Recapture mortgage at renewal and regain mortgage customer (12/24 months)

Or call, fax or email:
Toll Free Telephone: 1-877-253-4377
Toll Free Fax: 888-488-9922

Alternative Mortgage Solutions