Bridgewater Bank is a Canadian Schedule I chartered bank headquartered in Calgary, Alberta. Known for its customer-first approach, Bridgewater Bank provides a range of mortgage solutions tailored to borrowers with unique financial situations. While it doesn’t operate as a full-service retail bank, its focus on alternative lending and flexible underwriting practices makes it a strong option for Canadians who may not meet the strict guidelines of traditional lenders.
Bridgewater Bank is available through select mortgage brokers across the country, including brokers in Ontario. As with many alternative lenders, not all brokers have access to Bridgewater’s products, so it’s important to work with a broker who does.
Mortgage Products Offered
Bridgewater Bank specializes in residential mortgage solutions, particularly for borrowers who may have challenges qualifying with prime lenders. Their offerings include:
- Near-prime Mortgages: For borrowers with less-than-perfect credit or irregular income sources.
- Self-Employed Mortgages: Designed for small business owners or freelancers with non-traditional income documentation.
- Refinance and Equity Take-Out: Borrowers can access the equity in their home for debt consolidation, major purchases, or investment opportunities.
- Purchase Mortgages: For homebuyers who may not meet traditional lending requirements.
Bridgewater Bank’s products are generally available for first mortgages only. They often focus on properties in larger urban centres, and each application is reviewed individually, allowing for more flexible approval conditions.
Lending Criteria and Features
Bridgewater Bank stands out by offering more lenient approval guidelines than most major banks. Key features include:
- Stated Income Options: Especially helpful for self-employed individuals who may not have consistent income documentation.
- Higher Debt Service Ratios Accepted: This flexibility may help borrowers qualify who might otherwise be declined.
- Competitive Fixed-Term Rates: While not always the lowest on the market, their rates are competitive given the borrower profiles they cater to.
- Longer Amortization Options: Sometimes up to 35 years, allowing for lower monthly payments.
That said, their products typically require at least 20% down and may come with slightly higher interest rates compared to prime lenders.
Ideal Clients and Use Cases
Bridgewater Bank may be a good fit for:
- Homebuyers with bruised or rebuilding credit
- Self-employed individuals with variable income
- Borrowers recently out of a consumer proposal
- People seeking to consolidate high-interest debt
- Individuals looking for flexible lending criteria
Upsides and Considerations
Pros:
- More flexible underwriting than major banks
- Solutions for self-employed and credit-challenged borrowers
- Ability to work with complex income scenarios
Potential Drawbacks:
- Slightly higher interest rates
- Limited product range compared to larger lenders
- Not available through all mortgage brokers
As with any lender, borrowers should compare options and work with a knowledgeable mortgage professional to determine if Bridgewater Bank is the right fit.
Accessing Bridgewater Bank Products
Not all mortgage brokers are able to work with Bridgewater Bank. If you’re considering a mortgage with them, be sure to work with a broker who has access and experience with their offerings. At The Local Broker, we’re happy to help explore whether Bridgewater Bank might be a fit for your situation.
