A Poor Credit Mortgage can Improve your Financial Health
Mortgage for Poor Credit in Toronto, Ontario
Poor Credit Mortgage
Mortgage Solutions in Toronto, GTA, and across Ontario
Fast, Flexible, regardless of Credit
Poor Credit Mortgage Options
Mortgage lenders will consider mortgage options for borrowers with poor credit history. Homeowners that have built up home equity over time will be able to leverage it to pay off high interest debts. When paying down high interest debt, poor credit borrowers will start to repair their credit score. While private lenders tend to charge higher interest rates and fees for the added risk of the mortgage, they usually specialize in shorter term mortgages. The lender is hoping the mortgage loan will help improve poor credit scores so borrowers will be able to qualify for more traditional bank mortgages at lower rates.
Poor credit mortgages can be used for;
- New Purchase – Live the Canadian dream or diversify your asset allocation by purchasing a new home, second home or rental property.
- Repair Your Credit – Build your credit with consistent monthly payments, or payoff all high interest debts and start new with one of the best low interest borrowing options in the market.
- Debt Consolidation – Homeowners with bad credit can take advantage of their home’s equity and quickly have access to funds. Consolidate high interest debts and save money with a lower rate private mortgage while repairing bad credit.
- Renovation – Even with poor credit, homeowners may have to renovate their biggest investment. A poor credit mortgage leverages the home equity you have built into your home to pay for renovations that you need and increase the value of your home.
- Self-Employed – It’s not easy being self-employed and having to wear many different hats. Poor credit can result in addition to declared lower income. Our mortgage brokers will assess your financial situation to assess poor credit mortgage opportunities.
Factors to Consider
When considering a poor credit mortgage, ensure you have information to provide mortgage lenders such as:
- Proof of income
- Down payment if new purchase
- Property Value or
- Home Equity
- Credit Score
- Credit History
- List of debts
- List of liabilities
- List of assets
Square Capital specializes in helping borrowers with poor credit. Our mortgage brokers and mortgage agents will spend time to review your current financial situation and consider your circumstances. We work with prime lenders such as banks and private lenders to help find a mortgage solution that fits your needs.
Questions about Poor Credit Mortgages
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Simple and Quick Mortgage Loan Approvals
We know it’s complicated proving income earned and work with lenders who understand this.
With access to many options, we help navigate and secure suitable mortgage possibilities.
Consolidate high interest debts and save money.
Leverage your home’s equity and have access to immediate tax-free cash flow, with no regular payments.
Our Mission
Why People Choose Us
Fast/Quick Mortgage
Have your mortgage within 24 hrs, subject to terms and conditions
Best Rates, Flex Terms
Competitive mortgage loan rates with flexible 3 to 12-month terms
Rebuild Credit
Boost your credit within 90 to 120 days
Custom Payment Plan
Partial or zero payments for up to 12 months
Related Services Offered
Other Mortgage Options
Other mortgage options
Homeowners have choices and can consider options to leverage their home equity. Depending on the product, these options may have slightly higher interest rates.
Home Equity Line of Credit (HELOC)
There are different products that provide flexibility for the most suitable mortgage loan options such as home equity lines of credit or HELOC. A HELOC still enables access to the home’s equity, just in a different way. Instead of a single (or lump sum) payment, a HELOC provides on-going access to certain amount of money, similar to a credit card, with a lower rate. The amount of the HELOC depends on the value of the home.
The benefit of a line of credit is that payments are interest only payments and homeowners can access it when needed. Downsides include variable interest rates and access to the total amount of the HELOC, that could lead to more unwanted mortgage debt. That being said, there are opportunities to lock in rates to protect monthly mortgage payments.
Private Mortgage
When homeowners cannot qualify a mortgage refinance through a bank mortgage debt consolidation or a home equity line of credit (HELOC), private mortgages may be an alternative. Since private mortgage lenders will secure a mortgage debt consolidation against a home, the interest is usually lower than high interest debts like credit cards.
Private lenders usually charge a higher interest rate and fees than a bank, given the higher level of risk, however this option still reduces interest costs over time. This is because these lenders understand that situations exist such as quick turnaround for financing, bad credit, non-stated income and non-conventional properties.
Typically, private mortgages are shorter term products and only require the interest portion to be repaid. Private lenders evaluate risk differently than traditional lenders and will consider the borrower’s ability to repay that is beneficial to self-employed and people with bad credit. Private lenders can also provide debt consolidation options through second mortgages.
Second Mortgage
Borrowers unable to qualify for a mortgage refinance leveraging equity, could consider a second mortgage. A second mortgage will provide the option to consolidate loans with higher interest into a lower rate option. While interest rates for second mortgages tend to be higher, it will save money on interest costs over time. Speak to a mortgage broker to understand the costs associated with a second mortgage.
Reverse Mortgage
An option available to homeowners 55 and older are reverse mortgages that provide access to the home’s equity without having to sell. Reverse mortgages allow homeowners to borrow up to 55% of the value of the home. The concept of this mortgage is essentially a reverse loan that means there are no payments required. Payments will be made either in monthly payments or in a lump sum payment to homeowners. Homeowners will pay the reverse mortgage loan when they move, sell or the last borrower dies. Typically, the interest rate is higher, and there are fees additional associated with reverse mortgages.
Debt Consolidation Mortgage
To understand if a debt consolidation mortgage or a HELOC could be suitable options to consolidate debts, and help get your life back on track, contact Square Capital Mortgage Brokerage. We understand each case is unique and there are many factors to consider including homeowners with bad credit or low income. Unlike traditional lenders like banks and financial institutions, with very strict lending terms, Square Capital works with over 50 lenders, including private lenders, to find the right solution for our clients. Our expert mortgage brokers and agents will help to find solutions to lower your monthly payment and reduce or stop the interest on your debt. Lower monthly payments every month reduces the chances of financial default while improving your credit and managing your money wisely.
Learn more about leveraging home equity for products such as mortgage refinance, home equity lines of credit (HELOC) and second mortgages.
Budget Planning and Expense Tracking
While products like debt consolidation mortgages, HELOCs and private mortgages are tools to financial freedom, managing debt is the key to success. Practicing better money management in daily life like budgeting, monitoring spending, and saving. There are many free online apps that can support homeowners to achieve financial freedom and get better at managing money.
Get Started with your Poor Credit MortgageToday
Getting a mortgage when you have poor credit can be challenging and overwhelming. Square Capital can help you get a poor credit mortgage for you regardless of your credit rating. We can help you determine exactly how much you can afford. Start your bad credit mortgage online.
Questions? We’ll Put You On A Right Path!
Contact us today to get a free quote. We will help you understand the current market conditions affecting the mortgage market! Prequalify without affecting your credit!
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