Bad Credit Mortgage

If you are looking to get a bad credit mortgage, it might be for one of the 3 following reasons:

• A history not making your debts payments on time;
• You have filed for bankruptcy or you have recently been discharged from a bankruptcy; and/or
• You have filed for a consumer proposal or you have recently been discharged from a consumer proposal.

For the homeowner looking for a bad credit mortgage due to a history of not making debt payments on time, there is always the possibility of refinancing with an B lender to help with your current situation. Depending on your needs, your income, and the equity on your property, we can get you a bad credit mortgage to refinance and pay your debts and, consequently, fix your credit. If that does not work, we can get you a second mortgage to answer the same needs but at a higher interest rate. Even if the interest rate might be slightly higher then an alternative B lender, it would then save you money at the end of the month and help improve your credit. At the end of your 1- or 2-year term with the B lender or 2nd mortgage loan, you would be in a position to refinance with a traditional A credit lender. The whole point of getting a bad credit mortgage is that you are always moving forward in life, one step at a time!

If you are a homeowner who has just filed for bankruptcy and not yet been discharged, only a private lender will be able to finance you. You will need to have anywhere between 25% to 35% equity in your property or more. If you have been discharged from bankruptcy, it will depend on which lenders were included in your bankruptcy. You might not be able to refinance with a standard lender just yet therefore we might have to transition you to a B lender for a 12–24-month term for you to re-establish your credit. Again, this is done only if you need to refinance and get a bad credit mortgage to pay off debts, do repairs on your property or to consolidate all your debts into one payment.

If you are a homeowner who is currently in a consumer proposal, you might need to wait a minimum of 12 months before being able to transition to a B lender. They may consider refinancing you to pay of off your consumer proposal. Again, equity is the name of the game and they will lend you 65% to 75% of the value of your home. Once the refinancing is complete, you will have a 1-to-2-year term with them and then we transfer back to a regular lender. The strategy is always step by step.