Brampton Trucking Company Owner Refinance After Consumer Proposal and Mortgage Recall

1. Executive Summary

A Brampton client owned a trucking company. The husband was self-employed, and the wife was not working. A sudden business disruption caused by tariffs led to financial pressure, credit issues, and a consumer proposal. The first mortgage lender also recalled the mortgage. We reviewed the business bank statements and found that, despite the disruption, the business was still generating enough cash flow. We approached a B lender that could consider stated income based on 12 months of bank statements. The refinance paid out the existing mortgage, consolidated debts, and paid off the consumer proposal.

2. Borrower Profile

The borrowers were homeowners in Brampton, Ontario. The husband was self-employed and owned a trucking company. The wife was not working. The household faced credit issues and a consumer proposal after business disruption. Borrower identity, business name, income, credit score, consumer proposal amount, and lender name are not disclosed.

3. Property Profile

The refinance was secured against an owner-occupied residential property in Brampton, Ontario. The existing first mortgage had been recalled and needed to be paid out. Exact address, property value, existing mortgage balance, refinance amount, loan-to-value, rate, and lender name are not disclosed.

4. The Challenge

The file had several serious issues at the same time. The husband was self-employed through a trucking company, the wife was not working, the business had been disrupted by tariff-related pressure, and the clients had entered a consumer proposal. Credit had been damaged, and the existing first mortgage lender recalled the mortgage. A-lender financing was not realistic, and the file needed a lender that could look beyond tax-return income and assess current business cash flow from bank statements.

5. Why Conventional Solutions Failed

A-lender financing was not available because the clients had credit issues, a consumer proposal, and a recalled first mortgage. The wife was not working, so the file depended heavily on the husband’s self-employed trucking business. Standard tax-return income alone was not the right way to understand the file because the business had gone through disruption, but the bank statements still showed current cash flow. The file needed a B lender that could assess business cash flow through bank statements and accept the debt-payout structure.

6. Our Analysis

Our analysis focused on whether the business was still viable after the disruption. We reviewed 12 months of business bank statements to understand deposits, cash-flow consistency, business activity, and whether there was enough ongoing revenue to support a stated-income approach. The goal was to show that the consumer proposal and mortgage recall reflected a period of disruption, but the business still had enough current cash flow to support a structured refinance.

7. Financing Structure

The file was structured as a B-lender first mortgage refinance using stated income based on 12 months of business bank statements. The mortgage proceeds paid out the recalled existing first mortgage, consolidated debts, and paid off the consumer proposal. Public details do not disclose the lender name, mortgage amount, rate, fees, term, amortization, property value, loan-to-value, consumer proposal payout, or debt balances.

8. Why the Solution Worked

The solution worked because the file was placed with a lender that could evaluate the business through current cash flow rather than rejecting it only because of credit issues and tax-return limitations. Paying out the consumer proposal and debts helped stabilize the borrower’s profile, while paying out the recalled mortgage solved the immediate lender issue. The underwriting principle is that current business cash flow can sometimes support a B-lender refinance even when the recent credit history is impaired, provided the file is documented and structured properly.

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