Equity Lending

“They have tons of equity but don’t qualify under B20…”

Here’s the thing about equity lending: it exists because banks literally can’t do it. B20 guidelines require income verification. Full stop. No wiggle room. No common sense exceptions.

We’re provincially regulated. The funds we lend on come from individual investors, not the Bank of Canada. So when your client has 50% equity but their income looks a bit chaotic, we can actually say yes.

How equity lending actually works

Forget income ratios. Forget employment letters. Forget trying to make a square peg fit in a round hole.

We look at three things:

1. The equity cushion – At 50-60% LTV, there’s room for life to happen
2. The exit strategy – How do they refinance out in 1-2 years?
3. Basic debt servicing – Can they handle the payments while they sort things out?

That’s it. No 50-page applications. No proving their self-employment income fits a formula designed for T4 employees.

Who uses equity lending?

The self-employed contractor whose accountant is too good at their job. On paper, they made $40K last year. In reality, they renovated their house, bought a truck, and still had money for a Mexico trip.

The recent retiree with investment income that doesn’t count under B20. They’ve got the equity. They’ve got the investments growth. They just don’t have a letter from an employer anymore.

The divorcee who needs to buy out their ex but won’t have “qualifying” income until the dust settles. The equity is there. The plan makes sense. But the banks need to check their boxes.

The honest math

Our rates are higher than the banks. Of course they are. We’re doing the deals they can’t touch.

But here’s what your clients need to know: paying 8-10% for 18 months beats losing the house in a divorce. It beats missing out on a business opportunity. It beats being stuck.

Equity lending isn’t about finding the cheapest money. It’s about finding money that actually exists for their situation.

Why it works in places like Sicamous

Small town? Remote location? Most lenders see risk. We see reality.

Your client in Prince Goerge with 60% equity isn’t riskier than someone in Kelowna. They just live somewhere with longer selling timelines. We price that in. They get their mortgage. Life goes on.

Quick example

Client owns a $600K house free and clear. Needs $200K to buy out business partner. Bank says no because the business income is too new.

• LTV: 33%
• Exit: Refi once business income shows for two years
• Decision: Usually within 48 hours

That’s equity lending. Not complicated. Just different rules for different realities.