Clay Jarvis
Mary FloryMany or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.
MCAN Home at a glance
MCAN Home Mortgage Corporation offers mortgages to a wide range of borrowers, including those with lower credit scores.
- Provides mortgage financing across Canada.
- Funds mortgages worth up to $2 million CAD.
- Offers refinance, renewal and purchase options for primary residences, rental properties and vacation homes.
- Works with over 3,000 mortgage brokers.
- Standard fixed- and variable-rate mortgages.
- Insured and uninsured mortgages.
- Mortgages for self-employed borrowers and those with non-traditional income.
- Mortgages for borrowers with sub-optimal credit.
- Mortgages for real estate investors.
- Mortgages for self-employed professionals (dentists, pharmacists, lawyers, etc.).
Pros:
- Decent selection of mortgages that could be a fit for homeowners and investors.
- Federally regulated, which should ensure ethical, by-the-book lending practices.
- Over 30 years of experience in real estate financing.
Cons:
- The MCAN Home website featured several broken links where information for potential buyers is meant to be, at the time of this writing.
- Some mortgage products are only available for niche borrowing groups, like self-employed professionals.
- Must work with a mortgage broker to access MCAN Home mortgages.
- Several products aren’t available if the loan-to-value ratio is more than 80%.
MCAN Home Mortgage Corporation full review
MCAN Home Mortgage Corporation, also called MCAN Home or MCAN Mortgage Corporation, is the residential lending arm of MCAN Financial, a loan company and mortgage investment corporation that has been a publicly traded company since 1992. Prior to a rebrand in 2022, MCAN Home was known as XMC Mortgage Corporation.
MCAN Home is an alternative lender, but it is governed by the Office of the Superintendent of Financial Institutions, the same body that regulates Canada’s chartered banks. This level of assurance could be partially responsible for how much business MCAN Home generates. The company originated almost $1 billion in mortgages in 2022.
MCAN Home differs from the Big Six banks in a significant way: by providing mortgages to a wider range of borrowers, some of whom may not qualify for mortgages with traditional lenders. In addition to assisting first-time buyers, investors and downsizers, MCAN Home also offers mortgages for the self-employed and individuals with damaged credit.
MCAN Home’s mortgage offerings include renewals, refinances and an interesting selection of purchase options, including products for multi-generational families and certain designated professionals and a unique variable-rate mortgage where the amount paid toward the principal does not fluctuate.
Who is MCAN Home Mortgage Corporation best for?
MCAN Home may be a fit for borrowers looking for more flexible lending criteria, such as those with lower credit scores, the self-employed and multi-unit real estate investors.
Because MCAN Home is not a chartered bank, it can be more lenient with its credit score and debt service ratio guidelines. Depending on your credit profile, income and assets, qualifying for a mortgage at MCAN may be easier than at a Big Six bank like RBC or BMO.
How to choose the right mortgage lender
Selecting the right mortgage provider is a big decision. A mortgage is a large debt, and you want to make sure that you’re getting the best deal possible. You’ll need to do some research, make a list of what’s important to you, and spend some time comparing offers from the different types of providers. You can start by following these steps:
- Decide your budget: It’s important to have an idea of how much mortgage you can comfortably afford before talking with lenders. They may offer you more than you want to spend; it’s important to be ready for that conversation.
- Understand the different types of lenders: Mortgage providers include banks, credit unions, brokers, alternative lenders, and private lenders. Each has its pros and cons.
- Compare offers from three different lenders: To ensure you have a good idea of what’s out there, consider seeking mortgage pre-approval from a big bank, a broker and one other type of alternative lender.
- Don’t focus too much on rates: The interest rate is just one part of the mortgage equation. Yes, you want the most competitive rate possible, but it’s also important to weigh the reputation of the lender, the quality of customer service they provide, the types of loans they offer, the fees they charge, and the flexibility of terms they may offer.
» LEARN MORE: Read our guide to choosing a mortgage lender
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MCAN Home Mortgage Corporation feature overview
Variety of mortgages
MCAN Home offers a modest selection of mortgage products, but it’s still varied enough to potentially meet the needs of a wide range of borrowers, from those with bruised credit to entrepreneurs to accredited professionals.
MCAN’s offerings for borrowers with low credit scores, its Discover Alternative Mortgage Solutions, are particularly eye-catching. They offer funding to individuals with credit scores below 600, and in some cases, below 500.
Standard mortgages are on the menu, too, including the MCAN Home No-Frills mortgage and the company’s Precision Prime mortgages, the latter of which are available as either fixed- or variable-rate products.
Ease of application
You cannot apply for a mortgage directly with MCAN Home. You will need a mortgage broker to act as an intermediary for you. The company’s website provides a tool for helping find a broker near you.
Once you’re an MCAN Home client, you can manage your mortgage through the MCAN site.
Loan amounts & terms
The maximum mortgage amount provided by MCAN Home, which is available on its Rental Mortgage products, is $2 million.
The terms available are three or five years for its Precision Prime fixed-rate products and five years for its Precision Prime variable-rate option. Terms are not disclosed for any of MCAN Home’s other mortgages.
Mortgage rate transparency
MCAN Home provides a detailed, frequently updated interest rate sheet that covers its Precision Prime and Discover Alternative products.
The sheet is meant as a resource for the company’s mortgage broker partners, so the layout and some of the terminology may be confusing. If you’re checking out MCAN Home’s rates and have questions, pick up the phone and get the answers you need.
Rate types
MCAN Home provides both fixed- and variable-rate mortgage options.
Mortgage fees
MCAN Home’s broker partners work on commission, which the company pays once a mortgage has been approved.
Based on the product information MCAN makes public, there aren’t many instances where a borrower should expect to pay additional fees. Its Rental Mortgage product applies a 20-basis point rate premium if certain investors are looking for a 35-year amortization. Borrowers are charged a 1% lender fee when they opt for a Discover Alternative product.
Security/safety
NerdWallet is currently unable to evaluate the MCAN Home’s security mechanisms. As of October 4, 2023, there was an accessibility primer where the company’s privacy policy should be on the MCAN website. Its commitment to accessibility, however, is pretty thorough.
Being regulated by the Office of the Superintendent of Financial Institutions should mean that MCAN is held to the same security standards as major banks, but that cannot be verified by any easily accessible, public-facing information.
Customer satisfaction ratings
Based on NerdWallet analysis of customer satisfaction ratings on popular review sites, MCAN Home Mortgage Corporation typically provides a satisfactory experience for customers.
MCAN Home had a 4.3 out of a possible 5-star rating on Google at the time of this writing. The ratings typically fall into two categories: wonderful and bad, with the major complaints typically involving poor customer service.
MCAN Home is not accredited by the Better Business Bureau. It has no customer ratings on the BBB site, but has an A+ rating from the BBB itself.
The company had not received any Trustpilot reviews or a Customer Service Scoreboard rating at the time of this writing.
MCAN Home eligibility requirements
MCAN Home mortgages are available to a wide range of borrowers, including those with low credit scores. In fact, you may be considered for certain alternative mortgage products if your Beacon score is below 500, although the loan-to-value (LTV) ratio for these mortgages tops out at 65%.
To be approved for a mortgage with a higher LTV, you’ll typically need a credit score of 600 or more.
Eligibility for certain MCAN Home loans will also depend on how you plan to use the property. Some loans are only intended for owner-occupiers. Others can be used to fund the purchase of rental properties.
Nerdy Tip: Use a mortgage affordability calculator to determine how much you can afford to pay for a home. If you have a unique situation or need additional information about the eligibility requirements, it’s best to speak directly with a mortgage specialist.
How to apply for a mortgage with MCAN Home
You cannot directly apply for a mortgage with MCAN Home. Instead you’ll have to:
- Choose a mortgage broker that works with MCAN Home.
- Get pre-approved for a mortgage to determine your maximum mortgage amount, interest rate, terms and conditions.
- Apply for the mortgage you hope to be approved for with the assistance of your broker.
Alternatives to an MCAN Home Mortgage Corporation loan
| True North Mortgage | RBC Mortgage | First National Financial | |
|---|---|---|---|
| Lender type | Mortgage brokerage | Big Bank lender | Non-bank lender |
| Service area | National | National | National |
| In-person service? | Yes | Yes | Yes |
| Ease of application | Easy (online, phone, in-person) | Easy (online, phone, in-person) | Difficult (online, phone, in-person) |
| Mortgage variety | Above average | Average | Above average |
Frequently asked questions about MCAN Home Mortgage Corporation
MCAN Financial is registered as both a loan company and a mortgage investment corporation. MCAN Home, formerly XMC Mortgage Corporation, is MCAN’s mortgage lending business.
MCAN Home, MCAN Financial’s mortgage business, is an alternative lender. In addition to providing loans to borrowers with high credit scores and strong incomes, MCAN Home also offers mortgages to those with low credit scores and non-traditional income sources.
About the Author
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