This is a fictionalized case study intended to illustrate how Magenta provides solutions for borrowers in similar scenarios. All identifying details have been changed to protect the privacy of our customers.
At the beginning of 2020, Beth felt good about winning a bidding war for a five-year-old home in Barrhaven. It was the perfect location and would be the ideal home. She hand-picked every detail of the house and tailored it to the preferences of her growing family.
Beth had already secured a mortgage from her local bank when suddenly she lost her job. And because her employer of ten years labelled her salaried position as non-essential, she would not return to work any time soon.
Her mortgage broker informed her that this interruption in income meant that she would no longer qualify for the mortgage. Beth won the bidding war on the condition of an approved mortgage. Without it, she couldn’t present a firm deal.
The new house was closing in a week, and the family that bought her existing home had moved in. If she lost this house, where would she live?
Beth couldn’t qualify at a traditional lender for a $500,000 home without assistance. And if she backed out now, she would lose her deposit. She had run out of options.
Thankfully, Magenta found a solution for Beth.
The Magenta Loan Solution
Despite her current circumstances, Magenta saw that Beth had a lot going for her.
While employed, Beth had been paying off her debt as agreed, all while saving a large amount of cash savings. This gave her a lot of equity in this new property. She was also steadily employed for the last ten years in the same industry. She also had plenty of equity in her dream home.
Magenta’s team worked with Beth‘s broker to find a payment solution for her. Based on her large downpayment and low loan-to-value, the underwriter was able to work out a payment solution that fit her tight timeline.
Within the week of her loan approval from Magenta, there was only one thing on Beth’s mind–moving into her perfect home and settling into a brighter future.
We have a solution for you, too.
If you or your client are in the market for a unique lending solution, contact Magenta’s team below.