Bad Credit Mortgage
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.
We will find you the lowest rate!
… And we put it in writing!
Important Factors for bad credit mortgage approval
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:
- Income that can be confirmed, proven through Notices of Assessment (NOA) and pay stubs.
- Non-confirmable income, which is common amongst self-employed or commission-based employees, and compels the lender to use an estimate of your income, in determining a figure they may use for their loan calculations.
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.
3) Down payment
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.
4) Property type and value
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.
To get more details on Bad Credit Mortgages please contact:
Our Latest RatesNote: Rates are subject to change without notice.
|5 Year Variable||3.05%|
|5 Year High Ratio||2.71%|
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We were 6 months behind on our mortgage and the sheriff was coming in 5 days to lock us out of our home. Every other mortgage broker said NO! I can ’t believe you were able to get us a second mortgage that fast. You saved our home and I will refer everyone I know to you.
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I m self—employed with bad credit related to a past business failure. My new venture was going great and I wanted to buy a home, but the bank would not qualify me for a mortgage. I didn ’t know about private lenders until I saw your flyer. Thanks for fulfilling my dream of being a homeowner.
Earning only pension income I couldn ’t keep up with my payments. The bank said that due to my age they could not give me a loan. Paying off all my debt and giving me one low monthly payment helped me save my home of 35 years. I am very much indebted to you.
The bank would not lend money on our farm unless we showed them financial statements. Since my husband passed away, my son and I were struggling to keep the farm afloat. We just needed more time. The third mortgage you got us was the miracle we needed. You believed in us and we are so grateful. Thank you.