Several reasons may lead to facing a Bad Credit situation and the necessity of a home equity loan, such as inability to make timely payments, a flurry of delayed payments, lack of credit in the past or some out of control personal life circumstance. However, even if someone has bad credit, they still would require financial help for survival and retaining their home and lifestyle – this is where a home equity loan with bad credit can help.
Unfortunately, the banks do not entertain any person entering in the bad credit domain – let alone extending a home equity line of credit, which would ideally assist in consolidating high interest debt at a lower rate. Thankfully, with the ongoing recovering phase of the real estate market in Canada, it is now easier to obtain home equity loans with bad credit, and we have at our disposal over 400+ lenders to draw upon for your home equity needs. At Expert Mortgage, we are among the most reliable names to help you in this regard. We will assist you to find the most reasonable deal on your bad credit home equity refinance, which may allow for you to borrow funds from your existing home without all of the bank related red tape.
If you have a decent credit score, say 650, most prime lenders or bad credit institutional lenders won’t mind giving you the loan. Nevertheless, several indispensable factors are important to consider if the score lies in between ranges. Even if your credit score is below 500, we have private lenders, that we have vetted to ensure we can assist you with terms that are the best in the industry.
If your credit score falls between 600 and 700, you may still get a bad credit mortgage loan from certain prime lenders, which may be subject to certain conditions related to their underwriting criteria. For this you would require to demonstrate that you have a dependable source of income. Your income may fall in any of these two categories:
If you are refinancing, lenders will allow you to increase your mortgage up to a maximum loan-to-value ratio of 85%. However, they always prefer to lend when you have more equity in your home, as the loan is backed by a secured asset.
A high down payment as a percentage of your home value would help you significantly in qualifying for a bad credit mortgage loan. It demonstrates to lenders that you are able to save money, and have a better stake in the property.
For your property to qualify with a bad credit lender, it needs to go through a strict appraisal and requires the rating of average-to-good, based upon the appraisal report prepared. Once these conditions are fulfilled, the lender can take the necessary steps towards approving you for a mortgage.
We stand out as one of the very few brokerages that commits to finding you the best rate and terms – and we put it in writing, when no one else will.
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