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Bad Credit Mortgage Ontario Canada

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Getting a Mortgage with Bad Credit

Sometimes life goes awry, a failed business, job loss or maybe a bad divorce and your credit gets temporarily damaged. Life is full of ups and downs. We have plenty of mortgage lenders that understand that good people have bad credit and specialize in helping people get over periods of damaged credit.

Lenders For Every Scenario! 

Free Consultation



Bad Credit Mortgage Ontario Canada

Lenders For Every Scenario!

Free Consultation



Getting a Mortgage with Bad Credit

Sometimes life goes awry, a failed business, job loss or maybe a bad divorce and your credit gets temporarily damaged. Life is full of ups and downs. We have plenty of mortgage lenders that understand that good people have bad credit and specialize in helping people get over periods of damaged credit.

We Have Many Lenders!

Bad Credit Mortgage Broker

A bad credit mortgage broker specialises in out of the ordinary lending policies.
They excel in helping borrowers with bad credit get a home loan to buy a property or refinance their current mortgage and consolidate debt.
If you have defaults, judgments, a large number of credit enquiries or you’ve declared bankruptcy in the past, it pays to have a bad credit mortgage broker on your side.
A bad credit mortgage broker will take stock of your situation and help get your finances back on track. 

As mortgage professionals, we’re trained in credit repair and debt consolidation strategies and can help develop a customized debt repayment plan to fix your fix credit problems.

We’ll find the best lender for you!

Bad Credit Mortgage Lenders

There’s over 100 different institutions offering mortgages in Ontario catering to every type of borrower. A large and growing percentage of Canadians don’t qualify due to credit or income for a prime mortgage through an ‘A’ lender. There are however two other lending options available to consumers, B lending and private lending. So if you don’t qualify for a prime mortgage from a scheduled bank; BMO, RBC, etc, you can still get a mortgage.

Bad Credit Mortgages From B (sub prime) Lenders

(Trust companies, Credit Unions, Monolines)

With the debt loads that most Canadians are carrying these days and with more than 30% of working Canadians either self employed or on commission income, ‘B’ lending is a popular and proven source of lending.

B lenders are large Canadian institutions (Trust companies, Credit Unions, Monolines) offering a variety of lending mortgage products.  

B lenders still require a credit score but will allow more transgressions than ‘A’ lenders.  

Clients that fall into the ‘B’ category would be missing one of the major components that the banks and other ‘A’ lenders require such as income or good credit.  They maybe recently bankrupt, they might be self employed and do not show their income or maybe have to low of a credit score to qualify with an ‘A’ lender.  

This type of lending is often offered as a short term solution until the client either gets their good credit back or has the income to qualify through an ‘A’ lender.  

‘B’ lenders provide an excellent lending option to the consumer.  

Interest rates are 1 or 2 % higher than ‘A’ lenders. There are sometimes arrangement fees of around 2.00% to 3.00%.

Use our Large Pool of Lenders 

Applying for a Mortgage with Bad Credit

The bad credit mortgage broker will ask for the same personal information as if you were applying for a standard home loan. (unless it’s equity based)

A completed application is critical for the lenders to understand your situation and grant you a mortgage.

Application details get uploaded into a computer programme, underwriters then generate different scenarios with regards to debt service ratios, monthly repayments and other variables which then gets presented to the lenders in a standard format they are familiar with it making it easier for them to understand your situation and approve your loan.

Utilise our Leading Edge Algorithms

Bad Credit Mortgage Rates

Mortgage rates on bad credit mortgages are risk based, the higher the risk to the lender the higher the rate. Mortgage rates can range from 3% to as high as 20% depending on the property, borrower and current economic conditions. Every client is evaluated on an individual basis based on ability to pay back the loan.

Get The Best Rate With Us!

Ex-bankrupt with 580 beacon qualifies for one year mortgage with 80% LTV at 4.79%

Clients
Couple trying to start fresh after the husband’s past marital breakdown

Property
Detached house with finished basement
Well maintained and located in desirable suburban area
Comparable homes in the neighbourhood average 60-90 days on market

Purpose
Refinance of home appraised at $400,000
Equity take-out to pay off first and second mortgages, consolidate debts on the credit bureau

Income
Combined household income of $180,000 with husband in tenured position
Income verified by employment letter, verbal confirmation by employers, and pay stub

Credit
Beacon of 580 due to husband’s past bankruptcy
Husband has since been discharged and is working towards rebuilding his credit
Their GDS/TDS is 13/28% and their stressed TDS was 32% using the mortgage rate plus 200 bps

Deal Rationale
One year mortgage allows client to pay off first and second mortgages, consolidate debts, and puts him in a better financial position for a fresh start in his new relationship

Our Mortgage Underwriting Team

Toronto Mortgage Broker Underwriters

We use Mortgage Origination Software to share your application with multiple Lenders saving you time and getting you the best deal possible.


 

Proprietory Mortgage Software

…using technology for greater efficiencies and industry leading customer care.

Why Mortgage rates are higher for clients with bad credit

The simple analogy is that of motor insurance; if you have an accident or commit a traffic offence your next years insurance will go up, same with mortgages if you damage your credit your next mortgage loan will have a higher interest rate.

What is the Best Bad credit mortgage strategy?

Typically your objective should be to secure a short term mortgage up to 2 yrs, during which time you repair your credit score after which you can apply for a traditional mortgage at lower rates.

5 c

A Mortgage Lender making a loan

Get Your Mortgage Here!

Great Mortgage Rates

Lenders give our clients better rates and bend their lending criteria rules more for us than smaller brokerages.

Fully Equipped Mortgage Office

Our unique proprietary software helps us tailor the most appropriate solution for your needs and makes deal processing more efficient.

Experienced Mortgage Underwriters

Our modern, purpose built, high tech underwriting hub employs some of the Industries top underwriters.

We’d love to help you get your next mortgage!
mortgages for borrowers with damaged credit award