The Harkins Family: Saved From a Last-Minute Closing Crisis in Hamilton

The Situation

Marco and Sofia Harkins had been searching for a home in Hamilton for nearly a year. With two young children and a combined household income of $128,000, they had saved $40,000 toward their purchase — enough to secure an accepted offer.

They couldn't qualify with an A-lender because Sofia had experienced some credit challenges after being laid off two years earlier, falling behind on credit card payments that damaged her score. Their mortgage broker placed them with a private lender instead.

The deal seemed solid — until closing day arrived.

Where It Fell Apart: The True Cost of Private Financing

What the Harkins family didn't fully anticipate was how quickly private lender fees would stack up on top of their already-committed $40,000 deposit.

Here's what closing with the private lender actually required:

On top of that, their monthly payment on a $610,000 private mortgage at 10.99% (amortized over 25 years) would have been approximately $5,950/month — nearly 60% of their take-home pay.

They arrived at the closing table $18,000 short with no way to bridge the gap in time. The seller gave them 72 hours to close before the deal would collapse and they would forfeit their entire $40,000 deposit.

That's when they called Clover.

How Clover Stepped In

With the clock running, Clover Properties moved quickly. We agreed to help by purchasing the home directly using A-lender financing at a rate of 5.49% — a rate the Harkins family couldn't access on their own, but that our investor buyers could secure through their own qualification.

Their $40,000 became their option deposit in our Rent-to-Own program, protecting it from forfeiture and putting it directly to work toward their future purchase.

Here's what the Harkins family actually paid to close:

The deal required a short extension, but it closed. The deposit was saved. The family moved in.

The Numbers Side by Side

*Includes $400/month in accumulated monthly equity credits applied toward their future purchase price — just for paying on time each month.

> The difference wasn't just $30,000 in closing costs. It was the difference between losing everything and keeping a clear path to ownership.

The Outcome

The Harkins family is now 18 months into their program. Sofia has worked diligently on her credit with guidance from a budget coach and has seen steady improvement. Both have maintained stable employment, their financial profiles have strengthened, and they're on track to qualify with an A-lender when their rent-to-own term ends — using their $40,000 option deposit plus accumulated monthly equity credits as their down payment.

What looked like a financial disaster became a structured path to ownership.

This case study is based on a composite of real client scenarios. Names and identifying details have been changed. Mortgage rates and fees reflect current private lending market conditions in Ontario and are subject to change.

How the Hellickson's saved their purchase with rent-to-own.

Worried you might be in a similar situation? Find out how Clover can help you close on a home — without the private lender trap. Visit our pre-qualification page to get started today.