Bad Credit Mortgages

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).