Cambridge Private Mortgage Refinance to B Lender Reduced Payments by About $3,500

1. Executive Summary

Cambridge clients were in a high-interest private mortgage and also had unsecured debts. Both husband and wife were working. The wife was salaried, and the husband was a self-employed electrician. Their credit score was on the lower side, so A-lender financing was not realistic. We approached a B lender and supported the husband’s income using 12 months of business bank statements. The refinance paid out the private mortgage and consolidated the unsecured debts. Overall, their monthly payments were reduced by approximately $3,500.

2. Borrower Profile

The borrowers were homeowners in Cambridge, Ontario. The wife was salaried, and the husband was self-employed as an electrician. The clients had lower credit scores, a high-interest private mortgage, and unsecured debts. Borrower identities, employer names, business name, income, credit scores, debt balances, and lender names are not disclosed.

3. Property Profile

The refinance was secured against an owner-occupied residential property in Cambridge, Ontario. The new B-lender mortgage replaced the prior high-interest private mortgage structure and consolidated unsecured debts. Exact address, appraised value, existing mortgage balance, refinance amount, loan-to-value, rate, fees, and lender name are not disclosed.

4. The Challenge

The clients were stuck in a high-interest private mortgage and also had unsecured debts. Their credit score was on the lower side, which made A-lender financing difficult. The husband was self-employed as an electrician, so the file required proper income analysis beyond a simple employment letter or paystub. The goal was to exit private lending, consolidate debts, and reduce monthly payments enough to make the household cash flow sustainable.

5. Why Conventional Solutions Failed

A-lender financing was not realistic because of the lower credit score and the self-employed income complexity. The husband’s electrician income required a lender that could consider bank-statement cash flow rather than relying only on standard income documentation. The existing private mortgage was expensive, and the unsecured debts added additional monthly payment pressure. The file needed a B lender that could support stated income and use the refinance to improve cash flow.

6. Our Analysis

Our analysis focused on whether the clients could be moved out of private lending into a more sustainable B-lender structure. We reviewed the wife’s salaried income, the husband’s 12 months of business bank statements, the private mortgage cost, unsecured debt payments, property value, and overall debt-service position. The goal was to consolidate enough debt and replace the expensive private mortgage so the new payment structure created real monthly relief.

7. Financing Structure

The file was structured as a B-lender stated-income refinance. The lender considered the husband’s self-employed electrician income using 12 months of business bank statements. The refinance paid out the high-interest private mortgage and consolidated unsecured debts. Public details do not disclose the lender name, mortgage amount, rate, term, amortization, property value, loan-to-value, income, business deposits, or debt balances.

8. Why the Solution Worked

The solution worked because the refinance solved both the lender-category problem and the cash-flow problem. The clients were no longer suited for private lending if a B lender could support the income and ratios. Using bank statements helped document the husband’s self-employed cash flow. Consolidating the unsecured debts and replacing the private mortgage reduced the monthly burden by approximately $3,500. The underwriting principle is that a private mortgage exit should be measured by whether the new structure is genuinely more sustainable, not only by whether the rate is lower.

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