Are you struggling to get approved for a mortgage due to bad credit? You're not alone. Many people in Canada face this challenge, but we can help.
We specialize in bad credit mortgages and can help individuals with poor credit get the financing they need. We understand that life can throw unexpected challenges your way and that sometimes your credit score can suffer as a result. But we believe that everyone deserves a chance to own their own home, and we are here to help you make that dream a reality.
Talk to us today and find out how we can help.
Bad Credit Mortgages in Canada What You Need To Know
A bad credit mortgage is a type of home loan offered to individuals with a low credit score or a history of financial difficulties. In Canada, these mortgages are typically offered by specialized lenders who understand the unique challenges faced by individuals with poor credit.
Bad credit mortgages often come with higher interest rates than conventional mortgages, as lenders view these borrowers as higher risk. This means that borrowers with bad credit will end up paying more over the life of the loan. However, these mortgages can be a good option for individuals who may not be able to qualify for a conventional mortgage due to their credit history.
One of the key benefits of a bad credit mortgage is that it can help individuals with poor credit rebuild their credit score over time. By making regular, on-time payments, borrowers can gradually improve their credit score and eventually qualify for a conventional mortgage with a lower interest rate. This can be a valuable opportunity for individuals who are looking to improve their financial standing and secure a more affordable home loan in the future.
What’s Considered Bad Credit?
The following table shows a good guideline for credit health in Canada.
Credit Score Health Ranges in Canada
Your credit score will be affected by missed payments, bankruptcies, consumer proposals, and past-due accounts sent to collection agencies.
How Long Do Negative Credit History Events Stay Affect My Credit?
Most credit delinquencies will stay on your credit bureau for 6 years.
A bankruptcy will remain on your credit bureau for six years after it has been discharged. Bankruptcy can be discharged as early as nine months after filing.
If you file for bankruptcy multiple times, the information will remain on your credit report for 14 years after the last bankruptcy filing.
Qualifying for a Mortgage When You Have Bad Credit
There are a number of financial institutions that offer mortgage products specifically designed for borrowers with less-than-perfect credit. These lenders may be willing to work with you to find a mortgage solution that fits your needs and budget.
Additionally, there are a number of private mortgage lenders who specialize in providing financing to borrowers with bad credit.
Home Equity Loans and Refinancing When You Have Bad Credit
We’ll explore both the ‘B’ lender options and private lender options for your 2nd mortgage, or refinance if you do not qualify for financing with an ‘A’ lender.
If you have equity chances are we can get you an approval.
It is not uncommon for competitor brokerages to charge very high fees, and leave you no better off after a few months. We will always try to get you the best deal and put you on the right track to qualify for ‘A’ lender financing in the future. Bad credit mortgages have higher rates and fees, but we'll still save you money.
If we can’t get you approved, chances are no one can. If that's the case, we'll create a plan for you to put you on the fast track to being able to.
Purchasing a Home When You Have Bad Credit
A large down payment is the best way to compensate for bad credit if you want to buy a home.
If you have bad credit and no money for down payment, getting a mortgage will be difficult to impossible.
We can help you in this case by reviewing your credit report and giving you an action plan for repairing your credit so that by the time you have saved up some down payment, your credit will also qualify for 'A' lending.
We will most likely be able to help you get a mortgage if you have at least a 20% down payment and/or solid income.
In spite of higher rates and fees that come with bad credit mortgages, we'll still save you money compared to other brokerages who charge very high fees and leave you no better off in 6-12 months.
When we arrange a bad credit mortgage for you, we'll get you set up on a path to qualifying for ‘A’ financing in the future -- With the goal being to refinance your bad credit mortgage with an ‘A’ lender in 1-2 years.
Why Use Dominion Lending Centres?
Working with us as your mortgage broker is easy, and it will save you time and money.
An inexperienced or less-than-honest mortgage broker or agent may take advantage of you or do what is more convenient for them, even if it's not in your best interest.
With us, we will always seek to get you the best financing you can qualify for, and will charge a brokerage fee that is fair for everyone.
Our goal is to have a long-term relationship with you, get you on the fast track to qualifying with an “A” lender, and refinance your mortgage in the future with the best rates available in Canada.
In spite of bad credit mortgages coming with higher rates and a fee, we'll still save you money compared to other options out there.
Plus, you get unbiased advice from an experienced mortgage broker that is dedicated to you and focused on giving you an amazing experience. Contact us today!