Contrary to popular opinion, you may be eligible for a mortgage even if your credit score is less than desired. Borrowers who have bad credit or poor credit can get mortgage financing via programs that are specifically tailored for them.
Also, poor credit (or bad credit mortgages) can help improve your credit score which could qualify you for a conventional, lower rate mortgage down the road.
Getting a poor credit mortgage could help enhance your credit score by paying off those high interest debts.
Poor credit situations usually occurs because of missed payments on things like credit cards, that continue to charge high interest rates. This means that you end up paying more over time and your credit history continues to be affected. Getting a poor credit mortgage could help enhance your credit score by paying off those high interest debts. We want to help you learn more about poor credit mortgage, based on the experience and insights of mortgage brokers and agents from Square Capital Mortgage Brokerage.
- Keep researching
Some lenders provide more convenient financing terms compared to others. You might save a lot of money just by researching lenders and locking in lower rates.
- Check out types of poor credit mortgage loan options in your area
Ensure that you look for good programs used by poor credit buyers and new buyers. This includes programs* such as First-Time Home Buyer Incentive, Home Buyers’ Amount, Home Buyers’ Plan and GST/HST New Housing Rebate.
- Look for a co-signer
In case you have poor credit, you may want to consider co-signing with a family member or an acquaintance with a higher credit score to increase your chances of being approved or to receive a more competitive rate. However, the co-signer will be held responsible for the repayment of the mortgage in case you are unable to pay or default. Also , if payments are missed or late, this affects the credit of your co-signer.
- Consider first-time home buyer programs
You might qualify as a first-time home buyer program* even if you owned a house before. In several cases, a first-time home buyer is often defined as someone who has not owned a house in the last 5 years.
*Government of Canada
- Explore many lenders
Looking into various lenders arms you with knowledge. The conventional brick-and-mortar banks are not the only option when it comes to mortgages today. There is an array of non-banking lenders, credit unions, online banking companies and mortgage brokers in today’s world. You can seek options and have choice in finding what that suits you best.
- Make a significant down payment.
It is quite possible to have both substantial saving and poor credit. Poor Credit Mortgage Lenders often want to qualify borrowers with poor credit in exchange for large down payments. Visit the Square Capital Mortgage Brokerage official website to learn more about mortgage solutions for poor credit mortgages.
Checkout Square Capital Website for more information: Square Capital Management Inc.
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