Different deals require different approaches. Obviously. But more so, not every deal is going to fit the big bank mould. No broker wants to see a great deal get dropped over stat sheet semantics, especially when the people behind the application are solid candidates otherwise. It takes a special kind of relationship with the lender, and an appreciation for the different qualities in a borrower’s history to make the right call. And that takes flexibility, creativity, and a one-on-one approach not to get cold feet at the 11th hour over little bumps in the financing road.
It’s not every deal that pushes nerves to the limit with a nail-biting cliffhanger. Most deals we make are basic and boring, which just another way of saying they manage to close without any backflips required. No hoops to jump through. But once in a while, you get those tricky loans with a higher LTV than the bank wants to see, or the client is self-employed and needs a more flexible approach to qualifying , or a location that is a ways away from the hustle and bustle of the major city. And these are Glasslake’s special case files. The ones the banks don’t see because they’re not cookie cutter and they need a little extra TLC. Over the years, we’ve had some really interesting loans, so we thought we’d go through some of them with you in all their glory. Each one is a different loan type, and each with their own reason for ending up in our pipeline and getting funded through Glasslake’s alternative lending programs.
Deal 1: The Residential Purchase
Location: Coldwater, ON
Loan type: Residential — Single Family Dwelling
Loan amount: $869,000
LTV: 75%
Term: 3 years
Amortization: 40 years
Qualifying method: 6 months bank statements
You could call this one old school. The client wanted an investment property and had more than enough income to support it, but ran into two of the most common hurdles in residential lending: their approved LTV (loan to value) was too low, and not enough amortization to keep the payments alive. Most lenders hit their limit at 65% LTV for a file like this. It’s totally acceptable but a little underwhelming, creatively. Glasslake got our client to 75%, which ended up being the difference between “better luck next time, bucko,” and “here are your keys.”
Forget about the amortization problem this client was facing, constantly shuffled around into 30-year approvals, but the math on that was pretty bad. But with a Glasslake 40-year, with interest only options for clients who want to actually manage their cash flow rather than live on a razor’s edge. We used a bank-statement qualification and the broker scored a 75 bps (basis points) finder’s fee. The deal closed instead of living in a zombie state until the end of time. If your client’s residential file keeps bouncing off traditional lenders for the same two reasons, it might be worth a look at what residential mortgage solutions actually do versus what the banks don’t.
Deal 2: The Commercial Refinance
Location: Windsor, ON
Loan type: Commercial — Light Industrial
Loan amount: $887,500
LTV: 60%
Term: 3 years
Amortization: 30 years
Qualifying method: Global DSCR using bank statements
Commercial lending has a bit of a reputation for being tricky about geography. Lenders hear “Windsor” and immediately get deflated. Even when there’s nothing wrong with the property, it’s not in downtown Toronto. Apparently, there’s a bit of snobbiness in real estate circles. Not us, though, we love Windsor! And we don’t care about locations more than the quality of the place. Property is King we always say. Well, something like that.
The other hurdle they hit is term length. The client wanted stability associated with longer amortizations. Banks have substantially scaled back their commercial offerings , but we’re here to fill those gaps! 30 whole years structured around a Global DSCR (debt-service coverage ratio) calculation based off of bank statements. It took us 24 hours to close, aka light speed in commercial lending. The broker walked away with 100bps commission, too. So for all those out there with a commercial file in a secondary market, who you gonna call? Loanbusters! No, Glasslake.
Deal 3: The Rural Rental Property
Location: Bancroft, ON
Loan type: Freehold rental property
Loan amount: $259,000
LTV: 75%
Term: 2 years
Amortization: 30 years
Qualifying method: TDS
This one is a bit special to us because it ran into two significant hurdles with other lenders. The location was rural, and the property didn’t meet standard DSCR criteria. We knew the DSCR calculation wouldn’t work, so we got a bit creative and qualified the deal using Total Debt Service (TDS) instead. TDS is a qualifying method that looks at the total financial picture instead of narrowly looking at the property’s income. We combined that with a 75% LTV and didn’t mind the rural setting. And ta da! A deal that normally would have dragged on for months of lender shopping actually closed in a reasonable amount of time. The broker got their 100bps because we decided not to treat this property like that annoying kid at every social event that flicks food off a fork.
The Pattern, If You Need Help Spotting It
All three of these deals have something in common. If you were going to say “Glasslake” you would be right, but more importantly they represent three provinces, three property types, and three different loan types that all need a flexible lender. Just because a client had a real and financially-managed life, the other lenders still said no. And always on a technicality, like LTV being too high, amortization too long, or location too remote. None said the client couldn’t afford the loan, just that it was too complex for their loan assembly line.
The best place to go for higher LTVs, longer term, flexible amortizations, no location bias, and qualifications that reflect your value and assets is a private lender you can trust. Someone who doesn’t insist that you pretzel your situation into a big bank spreadsheet. You know who to call. No, not loan busters. Geez.
TL;DR: Emily’s One-Minute Version
- The Residential Spot: A $869,000 purchase where other lenders were limiting the LTV at 65% with forced 30-year amortizations — we arranged 75% LTV with a 40-year amortization period.
- The Commercial Spot: A $887,500 light industrial refinance that lenders didn’t like because of location — we drew up a 30-year amortization, approved in 24 hours using Global DSCR.
- The Freehold Spot: A $259,000 rural property being refinanced and fell short of DSCR criteria — we used TDS to deliver a 75% LTV despite the remote location.
