A Canadian Banker Turns to Milo for a Faster Cash-Out Refinance

As a Canadian working in the banking industry, our client was well aware of the obstacles involved in securing a mortgage. Owning a single-family home in Edmond, Oklahoma, valued at $304,600, he initially planned to sell the property but wasn’t receiving the offers he hoped for. Rather than sell, he wanted to tap into the home’s equity through a cash-out refinance and continue renting the property. Given his extensive banking background, he was all too familiar with the lengthy processes and challenges posed by traditional lenders, which led him to search for an alternative solution. That’s how he found Milo.

The Challenge with Traditional Banks

Our client understood the bank process better than most. In Canada and the U.S., traditional lenders often require extensive documentation—income verification, employment history, credit reports, and more. These requirements can create bottlenecks, especially when time is of the essence. Additionally, banks often limit loan qualification based on a borrower’s Debt-to-Income (DTI) ratio, which calculates a person’s monthly debt payments against their income. For investors like our client, this posed a significant hurdle, as his income alone would have complicated the process. He needed a lender that could bypass these constraints and focus on the property’s income instead.

Why Milo?

When the client found Milo online while researching lenders for cross-border mortgages, he was drawn to our ability to offer more flexible solutions. Milo’s DSCR (Debt Service Coverage Ratio) loan program stood out because it doesn’t rely on personal income to qualify; instead, it uses the rental income from the property. This approach was exactly what the client needed to close the loan quickly and efficiently without the red tape and DTI restrictions he was all too familiar with in traditional banking.

The Solution

We structured a 65% Loan-to-Value (LTV) DSCR loan based on the property’s rental income, which allowed the client to tap into his home’s equity and reinvest it into a new property with more growth potential. With this cash-out refinance, he could continue renting his original property while using the cash to invest in a more profitable real estate venture, ultimately generating more monthly passive income.

The loan closed smoothly and quickly, bypassing the typical delays and bottlenecks of conventional banking. By working with Milo, the client avoided the extensive document requirements and restrictive DTI qualifications he would have faced with a traditional lender. Instead, we focused on what mattered most—the cash flow generated by his rental property.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.