# What if I have a less-than-perfect credit score or unconventional income?

> Non-conforming mortgages are designed for borrowers with higher-risk profiles.

Category: Strategy
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/strategy/what-if-i-have-a-less-than-perfect-credit-score-or-unconventional-income

## Answer
Non-conforming mortgages are designed for borrowers with higher-risk profiles. However, FRFIs typically require a maximum LTV of 80% for rental/investment properties and 80-85% for insured mortgages; 65% LTV is not a standard regulatory threshold. As the risk increases, the lending threshold decreases.

## Institutional highlights
- If you have a low credit score or can't easily prove your income, some lenders still offer mortgages.
- Down payment requirements vary, but generally non-conforming or higher-risk mortgages require at least 20% down (80% LTV) or more; 35% down (65% LTV) is not a standard regulatory minimum.
- 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:

## Related guide
- https://ratellow.com/guides/private-lending-mics-101

## Sources
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- IV. Other guidance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#4.0
- Disclosure requirements — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#3.1