Bad credit is sometimes misunderstood; there are a multitude of ways to repair that credit, but it takes time. When you do have bad credit, getting a mortgage can be a challenge. Conventional banks will not look at credit scores under 600 and late payments and collections are no longer acceptable at the bank level. So, if you have bad credit it can be tough to get a mortgage. If you have bad credit in Alberta, Saskatchewan or British Columbia, we have solutions for you.
Approval for a mortgage when you have bad credit is not an easy task. Bad Credit mortgage applications require some different information and down payments. Down payments on bad credit mortgages can start as low as 15%, provided you are in a major city. If you are looking for bad credit mortgages in areas outside of major populations, then the amount of down payment will vary depending on how far out, type of property and how low your credit score actually is at this time.
Bad Credit mortgages in Alberta can also be had for properties that have existing equity. Refinancing presents opportunities to use the equity in the property to get a bad credit mortgage. If you have multiple properties that can be added to the collateral, the lender can do what is called a “blanket mortgage”, which may help get the Bad Credit mortgage finalized.
Bad Credit mortgages come from a variety of lenders outside of the banks, who we have established relationships with. We work with our partners to provide you with exceptional advice about your best option right now and for your credit future.
1. MICs are mortgage investment companies composed of pools of investors who want to invest in real estate without actually buying homes themselves. These organizations are not as concerned with credit scores as they are with the value of the property and equity.
2. Syndicated mortgages are when two or more individuals put their money together to finance a property.
3. We have individuals who will fund bad credit mortgages from their own funds; many wealthy investors will have money set aside for just this purpose.
So as you can see, getting a mortgage when you have bad credit is not impossible, you can expect that it will cost more, but it is really meant to be a short term situation while we help you build your future credit score.