Poor or Bad Credit
Can I still qualify for a mortgage with bruised credit?
Are banks turning you away because of bad credit? If you don’t have a good credit rating, many lenders will deem you to be high-risk.
Some of Canada biggest lenders have all but ended lending to people who fall short in income and credit. The good news, if you’ve been turned away by traditional lenders, there are options.
Who are the bruised credit lenders in Canada?
There are plenty of bruised credit mortgage lenders in Canada, you just need an expert to help find the right one. That’s where a mortgage broker can help.
Plan B Mortgage Services focuses on mortgages that are hard fund. Since we only deal with difficult mortgages we have more choices than other mortgage brokers in the industry.
Plan B works with you in order to best source out the lender, explain the solution and derive a plan to return to ‘A’ sector – resulting in success and efficiency for everyone.
How do I qualify with a bruised credit mortgage lender in Canada?
While it can be upsetting to be turned down by your bank because of bad credit, there are many institutions and alternative lenders who don’t use credit or income to approve mortgages where credit is bruised. Trust companies and credit unions and private lenders are still approving a number of mortgages.
While the stats show lenders are increasingly reviewing every deal case by case, which means fewer mortgage loan applications involving bruised credit are being declined.
It’s important to remember outside of the big banks, equity is more important than credit for many lenders. The larger your down payment, the more likely you are to get approved. If you’re purchasing a home and you don’t have good credit, you should have 20% down, in addition to closing costs.
Mortgage lenders who deal with bruised credit are often willing to look past a variety of credit issues including:
- An unpaid payday loan(s)
- Consumer proposal & bankruptcy
- Tax debt
- Instalment loans, unsecured loans & credit cards in arrears
- Property tax arrears
- Mortgage arrears
As you can see, no matter your credit situation, there’s always a lender out there to help as long as you equity or a large downpayment.