Bad Credit

Getting a mortgage with a low credit score

This is possible but it depends largely on the property and surrounding area.

 

Lenders will be selective in these situations. It might be challenging to get a mortgage for a property in a small town or rural area. Run down neighbourhoods, industrial areas, and homes worth less than $250,000 are not likely to qualify. The amount you’ll be able to borrow will hinge on your credit score, income, as well as the quality of the property. Rural homes that have wells and septic tanks are capped at 65% of property value.

How do bad credit mortgages work?
Lenders rely heavily on the equity and sale potential of the property. They will also want to see that you have enough equity in your real estate and income to pay mortgage payments.

If you have a low credit score, I can help you find a mortgage and refinancing solutions across Ontario.

Many Canadians

struggle with debt that has a negative impact on their financial position.

 

Credit cards with high interest rates can be debilitating. It can be difficult to pay the minimum monthly payments. Sometimes life throws us curveballs, and that affects our finances. You may have lost your job, your business failed, you’ve gone through a separation and divorce, serious illness, car accident, bankruptcy or more.

While it can feel overwhelming, it is not an impossible situation. Alternative mortgage refinancing can help you get control over your credit card debt. You’ll be able to get back control over your finances. I have access to dozens of mortgage lenders and can help you find the best debt consolidation loan that will give you a new start.

Why get a bad credit equity loan from me

A bad credit equity loan can help you manage your debt and take control of your financial future. Here are 8 reasons you should contact me about one today.
1.If you have a significant amount of equity in your home, the property is attractive, and you’ll be able to pay the monthly mortgage – I’ll help you secure a bad credit mortgage.
2.You will not be judged on your situation. I treat all my clients with respect.
3.I will partner with you to help you build a financially strong future
4.I can find the best long-term mortgage solutions and get you on the road to financial recovery.
5.You will get answers to your questions and sound advice.
6.It will help you repair your credit.
7.I will be alongside you during the mortgage application process.
8.I offer fast and friendly service.
Second mortgage loans
Did you know that you can take out an additional mortgage on a property that already has a mortgage? That is what is called a second mortgage. Lenders see this as a more risky loan as they will be in second place on your home’s title. If you were to default on your mortgage, the lender listed first on your title would be paid before anyone else. It puts your second mortgage lender in a spot where they might not be paid back. For this reason, second mortgage rates are higher.

Homeowners with a current mortgage, good credit, and over 20% equity in their home can apply for a second mortgage with confidence. These loans are also called home equity lines of credit.

If you don’t have a strong credit rating or less than 20% equity in your home, you will need to seek a second mortgage from a trust company or private lender.

Why get a second mortgage?
Second mortgages can be used to consolidate debt and gain some control over your finances. Although the rates for second mortgages are higher, they are still less than the rates offered on credit cards, car loans, or unsecured lines of credit.

A wise way to use a second mortgage is to consolidate your debt. Doing this can help you manage your payments. It also improves your credit score over time. A stronger credit score will qualify you for a mortgage with a prime lender.

There are four areas that lenders consider before they approve a second mortgage, including

Equity. The more equity you have in your home, the better your chances are of getting a second mortgage. In the same way, the more you have for a down payment on a home, the less risk a lender has. You can also get support letters from utility companies, your telecommunication provider, insurance or other service providers to help strengthen your application.

Income. Lenders will want to see that you have a source of steady income that will enable you to make your mortgage payments.

Credit score. The stronger your credit score, the better interest rate you’ll be offered.

Property. Your property secures your mortgage, so lenders will want it to be an easy sell if they need to recoup their investment if you default on the loan.

Contact me today, and let’s get you in your dream home!

Contact Us

CANUCKMORTGAGEGROUP@OUTLOOK.com

Cell: 416-809-2196
Offfice: 905-264-8444

101 – 1 Director Court,
Woodbridge, ON L4L 4S5

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