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How to Get a Mortgage with Bad Credit in Ontario

What Is A Bad Credit Mortgage in Ontario

Bad credit happens. When the banks decline you, Approved Equity goes the extra mile to help you get a bad credit mortgage in Ontario for your property. What is a bad credit mortgage in Ontario, Canada?

A bad credit mortgage is simply a real estate term for individuals with poor credit that typical banks might decline. With the high cost of living in Ontario, cost of education, and more, there could be many reasons why someone has bad credit. However, don’t let that affect your chances of getting a bad credit mortgage in Ontario. With the lowest rates in the industry, Approved Equity will help you get a bad credit mortgage in Ontario as quickly as possible.

How Approved Equity Helps You Get a Bad Credit Mortgage in Ontario

If you have poor credit, banks might decline you for a mortgage. At Approved Equity, we leverage our extensive network of prime and alternative lenders to get you the best possible mortgage, with the lowest rates in Ontario. Reach out to get a bad credit mortgage in Ontario today with a free consultation.

How Mortgage Rates are Determined in Ontario

There are many ways mortgage rates are determined in Ontario. The main factors affecting mortgage rates and your eligibility of getting a mortgage loan from an A-lender, like a bank, or if you need to go the route of getting a alternative or bad credit mortgage in Ontario through a B-lender like a trust company or a private lender mortgage in Ontario. The main factors affecting the type of mortgage are the following.

 

  • Credit Score: Most prime lenders look for a credit score of 680 or higher.
  • Credit Report and History: Prime lenders look at your credit history of timely payments, missed/late payments, defaults, and more.
  • Income and Employment History: Prime lenders want assurance that you have stable employment and income.
  • Down Payment: The higher the down payment, the easier it is to get a mortgage. Borrowers with good credit (680+) can still qualify even with a 5% downpayment  up to $500,000 purchase price.
  • Debt History: If you a lot of debt still owing, your chances of getting a mortgage with a Prime lender will be difficult as Prime lenders and B lenders have debt servicing ratio requirements.
  • The Value of the Property: Banks and B lenders will require an appraisal value of the property and that will impact the mortgage loan amount. Rates are also tied to the Loan to Value (LTV).

How You Can Get a Mortgage with Bad Credit in Ontario in 2021

It’s difficult to get a mortgage with bad credit in Ontario, especially as regulations get stricter in some areas. Here are some tips you can follow on your end to improve your chances of getting a bad credit mortgage in Ontario in 2021.

 

Save for a Larger Down Payment

 

Your chances of getting a bad credit mortgage in Ontario increase substantially if you can put a downpayment of 20% or above in Ontario. Lenders will be less hesitant to trust you if you can put down a large down payment, even if your credit isn’t the best. At the same time, this helps reduce your payments on the loan and it leads to more home equity and monthly cash flow for you.

 

Show Stable Employment and Income

Show stable employment.  A solid to income to debt ratio will increase your chances of getting a good or bad credit mortgage in Ontario.

 

 

Get a Reliable Co-Signer

A lender looks at lending money based almost solely on the reliability of the borrower paying back on time and with interest. A reliable co-signer such as a spouse, family member, a business partner, or a friend can be a good option to help get a bad credit mortgage in Ontario.

When Banks Say No, Approved Equity is Here to Help

When in doubt about the likelihood of getting approved for a mortgage in Ontario, reach out to Approved Equity and our years of experience will be there to not only lend a helping hand, but to walk you through the entire process from beginning to end. Don’t worry about the stage of the buying processes you’re in. Approved Equity specializes in bad credit mortgages in Ontario.
We’re only a call away to start helping you today.

Bad Credit Mortgage in 30 Seconds

Why Approved Equity?

  • Low Rates
  • Approved in under 24 hours
  • We deal with bad credit
  • Always available. No more chasing down your broker

Get a Bad Credit Mortgage in Ontario Today!

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