A couple who had used a MIC to consolidate debt refinanced out of it about a year later with an alternative lender. Low loan to value carried ratios in the mid 50s, and the file was approved the day after submission.
Client details are changed or removed and figures are rounded to protect privacy.
Written by A.I.M.I. Collective Mortgage Group, Brokerage editorial team
Published October 2026 · Last reviewed 5 October 2026
Official sources: Office of the Superintendent of Financial Institutions (OSFI), Financial Consumer Agency of Canada
A couple owned a detached home in Metro Vancouver with a lot of equity. Over several years a run of events strained their finances and left some missed payments on their credit. They had already refinanced into a MIC to consolidate debt. Now they needed a lower cost lender to take them out, with ratios well above the usual benchmarks.
Building their home took a large share of their savings.
Both faced employment challenges during the pandemic period.
For a period they sent substantial financial support to a family member overseas.
Planning to sell and downsize, they moved to an open mortgage. Payments jumped to about $8,300 a month for an extended period, which led to high utilisation and occasional missed payments.
The MIC refinance consolidated debt and gave the credit time to recover. This file was the planned exit.
The credit explanation walked through each event with dates and showed that each one had ended.
One applicant, almost ten years in the industry, stayed with the same employer through a merger with no break in tenure. The other, seven years with the same employer, was qualified on the average of two years of T4 income.
At about 45 percent loan to value, the property gave the lender a large cushion against higher ratios.
A lower rate, consolidated debts, better monthly cash flow and funds toward a child's education.
When a client goes private, map the route back before it funds. Credit recovery and a year of clean payments make the next step possible.
Alternative lenders weigh loan to value heavily. Lower leverage can carry ratios an A lender would decline.
Use a two year T4 average for overtime or shift income, and say so in the note.
Document continuous tenure when an employer is acquired. See how MICs work and what they cost.
Brokers here place files with A, alternative and private lenders, so a client who needs a MIC today can be moved back down the ladder by the same broker later. The Deal Desk helps plan that route.
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