Beyond the Big Banks: How We Get Complex Files Approved Post-Stress Test

We've seen it countless times: a savvy, self-employed business owner or a new Canadian with a solid financial footing gets a hard "no" from their bank. Why? Because their file doesn't fit neatly into the standard boxes required to pass the mortgage stress test. We know the pain and frustration of feeling like the system isn't designed for you. That's where Kraft Mortgages steps in.

Passing the mortgage stress test isn't just about the rate you're offered; it's about proving your ability to handle payments at a significantly higher qualifying rate. For those with non-traditional income, this can feel like an insurmountable hurdle. But it's not. It's a matter of strategy, documentation, and expert navigation.

Everyday Expert Translation: What the Stress Test Really Means

In simple terms, the stress test is a financial simulation. Lenders must check if you could still afford your mortgage payments if interest rates were to rise significantly. This is designed to protect both you and the lender. However, the rigid income calculations used by major banks often fail to capture the full financial picture of self-employed individuals, investors, or those new to the Canadian financial system.

Case Study: The Self-Employed Professional

We recently worked with a successful consultant in Surrey. Her business was thriving, but because she maximized her business write-offs (a smart tax strategy), her declared income on paper looked modest. Her bank saw only the bottom line and declined her mortgage application.

Our approach was different. By leveraging alternative income validation strategies and working with a lender specializing in business-for-self files, we were able to present a comprehensive financial picture that showcased her true earning power and cash flow. The result? She was approved for the home she wanted, with a competitive rate and terms. This is a common success story for our clients.

Three Actionable Strategies for Complex Borrowers:

1. Optimize Your Down Payment

A larger down payment reduces the loan-to-value ratio, making you a less risky borrower. We can help you strategize the optimal amount to put down without depleting your necessary liquidity.

2. Leverage Alternative Lenders

The big banks aren't your only option. We have deep relationships with lenders who specialize in assessing complex income structures, from dividends and capital gains to business bank statements.

3. Structure Your File for Success

Before you even apply, we work with you to organize your financial documentation. This isn't just about gathering papers; it's about presenting a narrative that clearly and accurately reflects your financial strength to underwriters.

At Kraft Mortgages, we don't just process applications; we build strategies. We thrive on the complex files that others turn away.

Ready to see how your financial picture fits into the right mortgage strategy?

Book a 15 min Free Consultation Now

(Disclaimer: The following is a representative example for illustrative purposes. Your actual rates and payments may vary. For a loan with an interest rate of 4.25% and a term of 5 years, the Annual Percentage Rate (APR) is 4.35%. This APR is calculated based on a representative loan amount and includes applicable fees. All lending is subject to credit approval.)