What if I have a less-than-perfect credit score or unconventional income?
Non-conforming mortgages are designed for borrowers with higher-risk profiles.
Key Points
If you have a low credit score or can't easily prove your income, some lenders still offer mortgages.
Lenders take extra precautions with riskier mortgages, like having senior staff review them and closely managing any defaults.
Lenders need to have enough money set aside to cover potential losses from riskier mortgages.
Minimum down payment rules are 5% for first $500,000, 10% for next $1,000,000, and 20% for amounts over $1,500,000; 35% down payment is not a standard regulatory threshold.
Here's a quick look at how much you might be able to borrow, depending on your situation:
Technical Research Verification
Our systems synchronized 3 data points and regulatory frameworks to verify this technical brief.
Related Questions
How does the stress test differ for fixed vs. variable in 2026?
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%.
Why are 3-year fixed rates dominating the 2026 market?
Borrowers are hesitant to lock in for 5 years at current levels, but find 1-2 year rates too expensive.
Fixed vs. Variable Comparison Table
Fixed locks a 5-year rate with IRD penalty risk; variable floats with prime and typically caps break fees at 3 months interest.
What is the 'IRD' penalty risk for 5-year fixed borrowers?
The Interest Rate Differential (IRD) can cost tens of thousands if you break a fixed mortgage when market rates have dropped.