I often meet clients who have experienced a difficult credit history, which is standing in their way of buying a home or achieving their financial goals. Bad credit can be frustrating because credit history is an important part of the mortgage approval process.
If you’re running into difficulties or don’t think you can get mortgage financing, stay positive and don’t give up. It is possible for me to get you a mortgage with bad credit! This can also be a significant step in getting you back on track financially should you need to pay off a large amount of debt.
One of the primary advantages of working with an experienced Brampton Mortgage Broker is the access you get to my wide range of lenders, including institutional and private lenders that specialize in bad credit mortgages. While the guidelines are different for each of the lenders that I work with, they all will look at your overall situation and entire credit history, and some will even consider your application after a consumer proposal or bankruptcy. I also have access to lenders that will lend just based on the equity in your home.
Keep in mind that while your interest rate will be higher and you may pay additional fees, difficult mortgages are typically short term, for instance a 1 year term. During this time, I will work with you to improve your score and then look to move you to a better rate longer-term mortgage.
If you don’t have an immediate financing need, or you just don’t qualify with one of my lenders, there are ways you can make up for bad credit, such as:
- Asking a family member to be a co-signer for you. This person will need good credit and have the ability to be responsible for the mortgage if you no longer can handle the payments.
- Increasing the amount you have for your downpayment to 20% or more.
- If you can, putting credit repair strategies into place now and then getting your mortgage later. This should allow you to then get a lower-rate mortgage and more favourable terms.
If you are in Brampton and the surrounding area and your past is standing in the way of your future, please get in touch today. Together, we can chart a course to get you where you want to go. I look forward to working with you!
Six ways to improve your credit score!
- Get a copy of your credit report and see what your lender sees. Credit reports can be ordered for free through the mail or for a small fee at www.equifax.ca.
- The single biggest factor in your credit score is having a timely bill payment history. Start with a commitment to never let a bill get past due, and don’t ever let a bill go to collections.
- Your score is based on your credit balance relative to your available credit. Try not to use more than 30%. If your limit is $20,000, don’t let your balance go higher than $6,000.
- Having a credit history is important. You need a long steady record of owing money and paying it back. Take this into consideration if are thinking of cancelling a card that has a good track record
- Don’t apply for too many cards. In particular, say no when you are asked at a store’s checkout if you would like to take a credit card to save on your purchase that day.
- A secured credit card is a great way to establish or re-establish your credit rating. These cards require a deposit from you so you can never be in default.
