Clay Jarvis
Beth BuczynskiMany 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 low 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:
- Offers products for borrowers with low credit scores.
- Allows debt service ratios that go beyond traditional limits.
- Lends to self-employed borrowers.
Cons:
- 1% lender fee charged on certain mortgage products.
- Relatively low prepayment limits in some instances.
- Minimum down payment requirement — 20% in many cases — could disqualify some borrowers.
MCAN Home Mortgage Corporation 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 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 borrowers who may not qualify for mortgages with traditional lenders. Because MCAN Home is not a chartered bank, its credit score and debt service ratio standards are more lenient than what you’d encounter at a Big Six bank like RBC or BMO.
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.
MCAN Home Mortgage Corporation feature overview
Mortgage variety
- Fixed-rate mortgages.
- Adjustable-rate mortgages.
- Mortgages for primary residences, second homes and investment properties.
- Mortgage switches.
- Bad credit mortgages.
- Mortgages for self-employed borrowers.
Ease of application
MCAN works exclusively with mortgage brokers, so applying for a mortgage with the company happens after you’ve chosen a broker to help you out.
- Online pre-qualification: No.
- Online pre-approval: No.
- Online mortgage application: No.
- In-person option: Possibly, but it depends on which brokerage you choose to work with.
Once you’re an MCAN Home client, you can manage your mortgage through the MCAN site.
Mortgage rate transparency
MCAN makes some of its mortgage rates available online under “Broker Resources,” a set of product sheets for the company’s broker partners.
- Posted rates: MCAN publishes the posted rates for its Precision Prime and Discover Alternative series of mortgage products.
- Special rates: MCAN doesn’t advertise any special rates, but it does offer rate buydowns, which provide a way for borrowers to secure a lower rate in exchange for paying a fee.
- APR: There is no indication that MCAN’s advertised mortgage rates are annual percentage rates.
Other details
- Offers amortizations of up to 35 years.
- Lender fee of 1% on Discover Alternative mortgages.
- Allows GDS and TDS ratios up to 65% on certain products.
- Mortgage rates based on loan-to-value ratio.
- Lends to borrowers with credit scores below 500.
- Rate hold: Up to 120 days.
- Accepts alternative income types, such as child support, pension income and boarder income.
- Make a lump-sum payment: Pay an additional 10% to 20% of your original loan amount once per year.
- Increase your payment: Raise your original monthly payment by 10% to 20% each year.
Customer satisfaction ratings
It’s difficult to gauge how satisfied Canadians are with MCAN as a mortgage provider. Customer review websites can be helpful, but keep in mind that the reviews aren’t verified and may not accurately reflect the average option of MCAN customers; for example, unhappy customers may be overrepresented or their experience may not be mortgage-related. Nevertheless, these sites are one way to learn about possible downsides to consider.
- MCAN Home had a 4.2 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.
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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
MCAN works exclusively with mortgage brokers. You won’t be able to apply for a mortgage through the company’s website. but you can connect with nearby brokers that work with MCAN.
After navigating to the MCAN Financial homepage, hover over “Businesses.”
Under “MCAN Home,” click “Find A Broker.”
Enter your postal code into the field provided. The map below will show MCAN-affiliated brokers near you.
You don’t necessarily need to use the form to find a broker that works with MCAN. As an established lender, most experienced brokers in your area will likely have a relationship with the company.
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 (no online or in-person option). |
| Mortgage variety | Above average. | Average. | Average. |
Frequently asked questions about MCAN Home Mortgage Corporation
MCAN provides both A and B lending services. Its Precision Prime mortgages, intended for borrowers with credit scores of at least 650, would fall on the A side. Its Discover Alternative mortgages, available to borrowers with credit scores below 500, are B lending products.
If you’re having trouble qualifying for a mortgage at a Big Six bank, MCAN’s willingness to loan money to borrowers with low credit scores and debt service ratios that exceed the Canada Mortgage and Housing Corporation’s limits can be a definite advantage.
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