Finding a bad credit mortgage broker in Canada can be a daunting task. When you are in search of one when you are dealing with bad credit it can seem like it is an impossible ordeal. It is a good feeling to know that if you have bad credit or a low credit score you’re still able to qualify to purchase a home or if it applies to you, refinance your current mortgage. There are many lenders that will approve mortgages for qualified borrowers that have bad credit.
There are some mortgage brokers that specialize in mortgages for future home buyers or refinancers that have less than perfect credit or what is deemed as poor credit. In addition, there are some helpful tips you should keep in mind when you are looking for a mortgage broker; you want the mortgage broker to be able to work with your credit and be helpful at the same time.
Tips for Finding the Right Mortgage Broker with Bad Credit
Identify the Credit Score You Need
Being in the know of your credit score is always helpful, but even more so when you’re looking to buy a home. In most cases, a credit score of 580 or higher will put you in a position to qualify for a mortgage. Many don’t realize how much of a role your credit score plays in the process of buying a home.
The credit score is helpful to determine what type of mortgage interest rate and terms you qualify for. Your credit score will have a say in your interest rates; these things are some of the things you want to consistently consider when looking for a mortgage broker.
You never want to guess your credit score or assume that it is something that it may not be. It is important to know your credit score because it just may be higher than you think it is and knowing what it is will help you understand the programs you qualify for.
Find Out What You Can Afford to Borrow
It is important to know what you can afford to pay in terms of a mortgage. You never want to go into any big purchase being in over your head. Your mortgage broker will want to help you the best way they can. With that, they will need to know what you are able to pay for your mortgage and still be able to pay the other bills you will have.
When you are looking for a mortgage broker a good first step they will want to look at is how much you are qualified to borrow; this will be based on your expenses and your income.
Whenever a mortgage broker is looking into your expenses and income it may appear that you can afford more than what you are able to (considering other things you have to pay for), so it is good for you to know what you can afford. Note, estimates you may receive from different brokers may not be the same, but the range shouldn’t be too grand.
Look into Government Loan Programs
There are some government loan programs that you may be able to qualify for that could help you in getting a mortgage. One that initially comes to mind would be the CMHC purchase program.
CMHC Down Payment Assistance: a mortgage loan incentive that is provided by the Canadian Mortgage and Housing Company based in Canada. They help those who have the income to qualify for a mortgage have a down payment as low as 5%. These loans are accommodating for those that don’t have a lot of savings.
Get a Bigger Down Payment
It is said that cash is the key to everything… in this instance, it could be what is needed to you getting the keys to your home. Whenever you can bring more cash as a down payment to the table it will compensate for having a bad credit score. The more money you are able to put down on a home or the more equity built up in a property; the better the chances are that you get approved.
A large down payment amount to put towards a property will show that you are willing to take on some risk to avoid foreclosure (should that process ever arise). It will put you in a place that shows you are less risky to lend to.
Credit means a lot to everyone and it is crucial when you are looking to make big purchases and moves in life. Many times those that have bad credit are looked down on and not given the best shot in terms of moving forward in life. Our team recognizes not all past decisions dictate who a person is today, and everyone deserves a chance to get things right… we don’t want your credit score to be what stops you.
Secure an Approval with a Bad Credit Mortgage Broker
If you are one that has bad credit you shouldn’t feel like you are being judged. These tips will aid you in finding a skilled mortgage broker that is able to work with you and help you along your journey. Our team at LendToday.ca is here to help you reach your home financing goals.
With knowledge and several years of experience dealing with situations just like yours. Whether it be a mortgage with a financial institution, private lender, or trust company there are some great mortgage rate options available. We are here to help and ready to assist you in taking the next step in getting your home!
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