If you have bad credit, getting a mortgage can seem like an impossible task. But it doesn’t have to be! There are plenty of ways to get on the property ladder, even if your credit score isn’t perfect. But, before you make any decision, we always advise you to re-check your credit score. You never know what might have changed those numbers, right? If your problem still has no solution, then here are four tips for getting a mortgage with bad credit:
Improvising the Credit Score
A higher credit score is advantageous because it helps you ensure a lower mortgage rate, which results in cheaper monthly payments. If your current FICO rating isn’t high enough to qualify for an expensive loan from one of the big banks (referred to as ”A lenders”), then don’t give up hope just yet! You may want to use some time fixing this critical aspect before applying again—and hopefully, get approved faster next time around too.
Here are a few tips that can help you improve your credit score over time:
- Paying all your bills on time may be a great help
- Ensure to keep your expenditure under the credit limit
- Never try to apply for too much credit
- Keep all your old accounts along with you
When you start implementing the above tips, we assure that you will see a change in your score for the better!
Saving Larger Down Payments
Bankers look for more than just your credit score when considering a mortgage. They also consider factors like income and debt levels, as well as the size of your down payment (5% minimum in Canada). In general, if you have less-than-stellar finances or an unfavorable history, the higher risk will require that lenders take precedence over smaller cash contributions from applicants who do not need help paying off debts currently but could in future years. Consider saving 20-25% upfront instead if bad credits cause problems due diligence process-wise (to weed out riskier applicants and those who lie about their ability to pay).
Find a Lender That Can Give You a Bad Credit Loan
It can be difficult to obtain a mortgage without an ideal credit score. If you don’t meet the bank’s minimum requirement for approval, try finding “B lender” or lenders who can provide you loan. Are you in Ontario, Toronto, or any other city in Canada and are looking for mortgage without a good credit score? With bad credit mortgage Canada, our team of experts guides you in the right direction by hand-holding and providing extra support.
These agencies work exclusively with people that have less-than-perfect records of payments on their loans in recent years, try finding “B lender” or lenders who can provide you loan. Are you in Ontario, Toronto, or any other city in Canada and are looking for mortgage without a good credit score? With bad credit mortgage Canada, our team of experts guides you in the right direction by hand-holding and providing extra support.
Consider Joint Mortgage as an Option
One way to get a mortgage with bad credit in Canada is by having an individual sign as a co-signer. This person promises to pay your monthly payments if you cannot, but there are many risks involved here! If the other parties stop making their own installment plan, it could become burdensome on top of what was already difficult – financially speaking, at least.
If improving and savings might not be possible for you, searching for a bad credit loan lender might be the safest option for you. We specialize in providing home loans to people with a bad credit score without much difficulty. So, what are you waiting for? Contact us today and discuss the procedure further!
Apply for our systematic smart way to buy a home