Refinance - Credit
Challenged

The challenge

Between paying bills and making payments towards her other debt obligations, Grace’s financial picture was already tight. Then, with the closure of local factories and businesses due to the impact of U.S. tariffs, her income took another hit when her part-time job was cut. Desperate to get back on track, she hoped to use the equity in her home to consolidate her debt. 

Her backstory

In her mid-60s, Grace is single, with no dependents and carries a small mortgage of about $150,000. While she receives a modest pension from a previous employer, she began supplementing her income with a part-time job at a coffee shop in an industrial business park.

As with many small businesses, tariffs were forcing many to close or severely reduce employee hours. In Grace’s case, this extra income that she counted on was lost and it became difficult for her to meet her monthly financial obligations. During this time, she also began to collect unemployment insurance.  

Our view

With refinancing, we helped Grace turn things around. Not only did this option allow for all outside debt to be cleared, it also provided an opportunity for better cash flow and future savings. Overall, the LTV on this file was low and Grace also had regular, verifiable income from her pension. Another bright spot: Grace regained an additional source of income, returning to work part-time at a neighbourhood coffee shop.
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Approval details

• LTV: 39%
• GDS/TDS: 45/45
• Beacon: 615
• Income verification

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