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Bad Credit Mortgage Broker

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Bad Credit Mortgage Broker You Can Count On

We understand that financial circumstances can change and impact your credit score. That’s why we specialize in helping individuals with bad score secure a mortgage. Our team of experienced brokers has extensive knowledge of the Canadian market, including access to alternative lenders who offer solutions for those with lower credit rating. 

With our expertise and personalized approach, we have helped many clients with low credit scores achieve their dream of homeownership. We are committed to finding competitive rates and flexible terms that accommodate your financial needs while also improving your score over time through responsible mortgage management. You can also contact us for assistance with mortgage refinance, renewal, debt consolidation, HELOC, and self employed mortgage. We serve the residents of Scarborough, Ottawa, Newmarket, Oakville, Etobicoke, Vaughan and nearby cities.

Find out how long bad credit stays on your record and take steps in the right direction!

Mortgage broker in Oakville providing financial advice to a couple at Mortgage Squad office.

Bad Credit Mortgage in Canada: A Guide

A credit score serves as a quick reference for lenders to evaluate your reliability in repaying debts and loans. It plays a crucial role in determining whether you qualify for a conventional home loan or if you’ll need to consider options for bad credit mortgages. 

In Canada, credit scores range from 300 to 900, with higher scores indicating better reliability. If your score is below 700 and you’re looking for home financing, it may be beneficial to investigate bad credit mortgage options. This can involve acquiring the services of a bad credit mortgage broker to reach out to both prime lenders, such as banks, and specialized lenders or trust companies that focus on assisting individuals with less-than-perfect credit.

A bad credit mortgage provides a viable option for individuals with less-than-ideal credit scores to finance their home purchases. In Canada, credit ratings range from 300 to 900, with lenders assessing these scores to determine the risk involved in offering financing services. A higher score indicates better creditworthiness, which is built through consistent and reliable repayment of debts, including student loans, car loans, and credit card payments. Even if your score falls below the preferred threshold, you may still qualify for a bad credit mortgage, as these scores can often reflect past financial difficulties, such as bankruptcy or challenges in repaying loans.

As an experienced bad credit mortgage broker, we specialize in helping individuals work through the complexities of securing a mortgage despite their challenges. Our goal is to provide hope and solutions for those who might otherwise struggle to obtain home financing. We understand the unique circumstances that come with such a situation and work diligently to connect clients with financing options that suit their needs, making the dream of homeownership more accessible for everyone.

Portrait of a couple with financial problems looking at document in financial adviser's office.

Prime Lenders: Prime lenders may typically prefer applicants with stronger scores, but they can still offer competitive rates to those with scores of at least 600. These lenders are usually well-known financial institutions, including major banks, that many people think of when applying for a mortgage.

Trust Companies and Bad Credit Lenders: Specialized in serving those with less-than-perfect scores, trust companies offer options for individuals facing such circumstances. These lenders typically work with clients who have scores around 700 or lower and can even assist individuals with scores as low as 550.

Private Lenders: These can be individual investors or private firms willing to provide loans to those with poor credit histories. Some private mortgage lenders may limit their services to just funding the down payment. Although the interest rates from these bad credit mortgage lenders are generally higher than those from prime lenders or trust companies, they can be a valuable option for anyone with a score below 600.

If you’re thinking about applying for a home loan, but have a less-than-stellar credit score, there are key points to consider. Lenders will closely examine various aspects of your financial profile, focusing primarily on:

  • Credit Score and Debt History: Your score and debt history provide lenders with an overview of your financial reliability. This score will impact whether you qualify for standard financing or need a bad credit home loan. In Canada, credit scores range from 300 to 900, with higher scores being more favorable. If your score is below 700 or if you’ve missed payments in the past, a bad credit mortgage might be your only option.
  • Income and Employment Stability: Lenders prioritize your ability to consistently repay the loan. Thus, they will review your income and employment history during the application process. If your credit is not ideal and you have a low income or a shaky job record, you may find yourself needing to pursue a bad credit mortgage.
  • Property Condition: When applying for home financing, lenders will assess the property itself. They will evaluate its condition, maintenance needs, location, and overall affordability for you. If you’re seeking a bad credit home loan, be aware that lenders may impose stricter criteria on the type of property they will finance.
  • Down Payment Requirements: In Canada, the minimum down payment is 5%, but this increases to 10% if the property value exceeds $500,000.
Couple managing the debt
Private mortgage lenders in Hamilton discussing loan options with a client at Mortgage Squad Inc

Why Choose Us As Your Bad Credit Mortgage Broker?

At Mortgage Squad, we excel in assisting individuals with imperfect credit to achieve their homeownership dreams. With over 15 years of experience, we are recognized as leading bad credit mortgage brokers, adept at navigating the complexities of such loans. We understand the stress and uncertainty that can accompany the fear of being denied a home loan. That’s why we focus on setting our clients up for success from the beginning. 

Our thorough pre-qualification services and strong application support are tailored to showcase your situation positively. Count on us to guide you through every step of securing a mortgage, even if your score isn’t perfect. 

Win A Free Mortgage Payment

Register your mortgage renewal date with us for a chance to WIN your first month's payment upon renewal (see terms and conditions). By registering with us, you lock in the lowest interest rate possible up to four months before your mortgage is due. This means that if rates rise before your renewal, you'll still benefit from the lower rate. And if rates drop, you'll enjoy the same favorable rate. It's a WIN for you!

Tips for Securing a Home Loan with Bad Credit

To improve your chances of obtaining a home loan from a bad credit mortgage lender, consider the following strategies:

1. Boost Your Credit Score

Raising your score can enhance your eligibility for mortgage and potentially secure a lower interest rate. Focus on timely payments of bills and loans, reducing your debt, and maintaining a manageable level of overall debt to help improve your score.

2. Offer a Larger Down Payment

Submitting a larger down payment can significantly benefit your application. It decreases the lender’s risk and may lead to a reduced rate. If you can put down more than 20%, you might also avoid the necessity for mortgage default insurance.

3. Explore Joint Mortgages or Co-signers

Applying for a home loan with a trusted individual, such as a family member, can simplify the process. A joint arrangement can lower the lender’s risk and potentially result in a more favorable rate. Both you and your co-signer will share ownership and the associated responsibilities.

4. Research Lenders Wisely

Lenders differ in their risk tolerances and requirements. Finding the right bad credit mortgage lender is crucial for securing a favorable rate, potentially making the difference between approval and rejection. By choosing us as your broker, you gain access to an extensive network of lenders, helping you find the perfect match for your financial needs and goals.

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Our Agents

Mortgage Broker in Oakville - Zubair Afzal

Zubair Afzal is the Principal Mortgage Broker in Oakville & Director at Mortgage Squad. With over 19 years of experience in the real estate industry. His expertise spans across various domains, including residential and commercial mortgage lending, and real estate. With a strong background in real estate and a deep understanding of Oakville, Zubair is dedicated to providing high-quality service and personalized solutions to his clients. He is recognized for his commitment to excellence, having received honors such as the Entrepreneur of the Year 2012 and the Centurion Award.

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Commonly Asked Questions

To improve your chances of getting approved, you can consider improving your credit score through responsible financial habits, offering a larger down payment, exploring joint mortgages or co-signers, and researching lenders wisely.

The minimum credit score required varies depending on the lender and the type of loan. In general, most lenders prefer a score of at least 620 for conventional loans. However, some government-backed loans may accept lower scores.

It may be possible to secure a mortgage with no credit history, but it can be challenging. Lenders use credit history as an indicator of your ability to manage debt and make timely payments. Without it, you may need to provide alternative forms of documentation or seek out specialized lenders.

It is likely that a bad credit mortgage will result in a higher interest rate compared to someone with good score. However, the specific interest rate will depend on factors such as the lender, your credit score, and the current market conditions. Call us to know more.

Refinancing with bad credit may be possible but can be difficult. It’s important to carefully consider the potential costs and benefits before proceeding, as refinancing typically involves taking out a new loan with different terms and potentially paying closing costs. Speaking with a reputable bad credit mortgage broker like us can help you understand your options and make an informed decision.

An interest-only mortgage is a type of loan where the borrower only pays the interest on the loan for a set period, typically 5-10 years. After that, the borrower must start paying both principal and interest payments. This type of mortgage is often seen as riskier for lenders, so it may be more challenging to secure with bad credit. Reach us to know more.