A credit score is a simplified way for lenders to get an idea of how reliable and consistent you are at paying off debts and loans. Your credit score will determine whether you are eligible for a regular mortgage or if you will have to finance your home with a bad credit mortgage. Young people and newcomers will often be affected because they won’t have a long credit history. If you have a low credit score and are looking to purchase a home you may still be able to get a bad credit mortgage. Credit scores in Canada range from 300 to 900, and the higher your score is the better. If your credit score is below 700 and you are seeking financing for your home purchase you may be interested in looking at bad credit mortgage options with prime lenders like banks or with trust companies and other bad credit specialist lenders.
Register your mortgage renewal date with Mortgagesquad.ca and you could WIN your first month’s mortgage payment upon renewal (see terms and conditions). When you register your renewal date with us, you are securing the lowest interest rate possible up to four months prior to your mortgage coming due. So, if rates go up prior to your mortgage renewing, you can still get the lower rate. If rates go down, you will still get the lower rate… it is a WIN FOR YOU.
Because the burden to prove eligibility is greater on self-employed individuals, it pays to be well prepared before applying for a loan. The following should be considered before going into apply for a Self-Employed Mortgage:
Improving your score can help make you eligible for a bad credit mortgage and may get you a lower mortgage rate. Paying bills and loans on time, paying down debt, and keeping your debt at a manageable level can help improve your credit score.
When applying for a bad credit mortgage a larger down payment is beneficial. It reduces the risk for the lender and can lower your mortgage rate. A down payment greater than 20% can free you from being required to purchase mortgage default insurance.
Different lenders will have different risk allowances and requirements. The right lender can get you a better mortgage rate and can be the difference between getting a bad credit mortgage and not getting one so shopping around is to your benefit.
When applying for a bad credit mortgage it can be easier to make a joint purchase with someone you trust, often a family member like a parent. This can reduce the risk for the lender and may get you a better mortgage rate. The co-signer and you will share the ownership of the property and the risk.
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