Annie owns a mixed-use property in inner-city Hamilton, Ontario valued at $335,000. The neighbourhood is currently undergoing long-overdue revitalization. She operates a cash-based business on the ground floor and resides in the second floor apartment with her 5 children. She reports minimal income and has not filed her 2015 tax return. At the time of application she had a beacon score of 690, a $190,000 private mortgage at a rate of 9.00%, and approximately $45,000 credit card debt on which she was paying rates ranging from 21 – 29%. Although she was making minimum interest payments on the cards, the mortgage was paid on a timely basis.

We placed a new $250,000 first mortgage / 75% ltv at a rate of 6.50% with a private investor for a 1-year term. The new mortgage allowed her to consolidate her debt and reduce monthly expenses by more than $1,500. The substantial savings will go towards her family’s needs.


In preparation for renewal, we have counselled Annie to file her personal income tax return and to limit her credit card use. If Annie follows our advise, and barring any unforeseen hiccups, we will replace the private mortgage on maturity with an institutional lender. This will reduce Annie’s monthly shelter costs by half.

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