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Mortgage Squad Advisors
Bad credit rates

Bad credit mortgage rates in Canada.

Today’s best A-market 5-year fixed is 3.94% and variable 3.60%. Bruised credit means a premium, not a closed door — B-lenders price roughly +75-150 bps over A. We map your exit back to A-pricing in 12-24 months and shop 50+ lenders, no judgment.

Rates reviewed by the Principal Broker, Mortgage Squad Advisors · FSRA #13737| Updated Jun 16, 2026
As of Jun 16, 2026. Your rate depends on your file. O.A.C. FSRA #13737.

What rate can you get with bad credit?

Bruised credit prices at a premium, not a refusal. A B-lender typically sits roughly 75-150 bps over a comparable A-rate, often with a lender fee around 1%. A private first prices higher again, plus lender and broker fees — and every one of those costs is disclosed in writing before you sign. This is equity-based lending, so your down payment or existing equity does more to set the rate than the bureau score does.

The premium is real, but it’s a bridge. Re-establish two clean tradelines, keep every payment current, and most files refinance to A-pricing in 12-24 months — where many borrowers save more than they ever paid in the premium. We map that A-lender exit from day one, then shop your file across 50+ lenders with no judgment to find the lowest real cost. See how the product works on our bad-credit mortgage page, or read the private mortgage breakdown if equity is your fastest path.

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Bad credit mortgage rates — FAQ

How much higher is a bad-credit mortgage rate?
Expect a premium, not a closed door. B-lenders typically price roughly 75-150 bps over a comparable A-rate, often with a lender fee around 1%. Private firsts price higher again, plus lender and broker fees — all disclosed in writing before you commit. The premium is real, but it’s a bridge, not your forever rate.
Why is equity more important than my credit score for the rate?
Non-prime and private lending is equity-based. The lender’s security is the home, so the down payment or existing equity (loan-to-value) drives the approval and the pricing far more than the credit bureau number. A bruised score with strong equity often gets a sharper rate than a clean score with thin equity — which is why we lead with your equity position, not your score.
What credit score do I need (and what rate does it get)?
There’s no single cutoff — with enough equity there’s a path even with a low score, because the deal is equity-based. As a rough map: stronger files land at B-lenders around 75-150 bps over A-pricing with a ~1% fee, while thinner or more urgent files move to private firsts at a higher rate plus disclosed lender and broker fees. We shop your file across 50+ lenders — no judgment — to find the lowest real cost for your situation.
Can I refinance to a normal rate later?
Yes — that’s the plan. Re-establish two clean tradelines and keep payments current, and most files can refinance to A-pricing in 12-24 months. Many borrowers save more on the A-lender refinance than they ever paid in the B or private premium. We map that exit back to A-pricing from day one, so the bridge has a clear end date.

A premium, not a closed door.

We shop bruised-credit files across 50+ lenders — equity-based approvals, fees disclosed in writing, and a mapped exit back to A-pricing. No judgment, no bureau pull to start.