Category: Blog

Mortgage Refinancing – What you need to know

If you are a Brampton homeowner who is looking to save some money on your mortgage or perhaps you are looking to borrow additional money at a low rate of interest to consolidate your high interest debts, then refinancing your mortgage may be a good option for you. Currently interest rates are very low, but they won’t last as the Bank of Canada has started to raise them and there is indication that rate will continue to rise. So, if you are thinking about making this move to refinance your mortgage for any reason, then acting as soon as possible is what you will need to do.

But if you are unfamiliar with what mortgage refinancing is, well gladly help get a full grasp of what it is. Our team at Brampton Mortgage Broker has put this brief article piece together to give a quick overview and understanding of mortgage refinancing. If you have any questions after reading through the brief article, you always get in touch with one of our team members and we will gladly help you understand if mortgage refinancing is a fit for you and your current situation. So, now let’s get into the article below.

 
What is refinancing?

Refinancing your mortgage means that you are cancelling your current mortgage and replacing it with another one. So, if you were to break your mortgage before the maturity date (the date your mortgage comes up for renewal) then you will be responsible for the financial penalty that will result. However, if you were to wait until the maturity date (the date your mortgage comes up for renewal) then you will not occur this penalty cost.

With that being said, even if you have to break your current mortgage early to refinance often at times will result in immediate savings. For our clients, we have found that the amount of money that you will save by refinancing your mortgage far outweighs any penalties that you will have to pay. Thus leading our client to opt to refinancing their mortgage.

When should I consider refinancing?

The simple answer to this question is that you should consider refinancing whenever doing so will save you money. And there are a number of scenarios when this will be the case, and we will go over a few of them below:

Interest rates have gone down:

If interest rates have gone down since you last renewed your mortgage, then refinancing could save you considerable money over the amortization period of your mortgage. This rate change can be anywhere from 0.5% to a full 1% or even some cases 2% or more decrease in the mortgage rate you currently have.

We have helped many clients over the years cut down their interest rates by almost half of what it was before we have completed their refinancing. We have help clients with high interest rate of 6% or higher bring their mortgage rates down to a low manageable rate of 2% to 3% and some cases even lower. We recommend that you contact us to see how much interest rate we can get for your mortgage refinancing given your situation.

Interest rates have gone down:

If interest rates have gone down since you last renewed your mortgage, then refinancing could save you considerable money over the amortization period of your mortgage. This rate change can be anywhere from 0.5% to a full 1% or even some cases 2% or more decrease in the mortgage rate you currently have.

We have helped many clients over the years cut down their interest rates by almost half of what it was before we have completed their refinancing. We have help clients with high interest rate of 6% or higher bring their mortgage rates down to a low manageable rate of 2% to 3% and some cases even lower. We recommend that you contact us to see how much interest rate we can get for your mortgage refinancing given your situation.

You have improved your credit:

Another scenario where it might make sense to refinance is if your currently have a bad credit mortgage but have improved your credit to the point where you can qualify for a traditional mortgage. Since you can save a considerable amount of interest by making the switch, it may make sense for you to make the switch early by refinancing. So, keeping your credit score in check is a must, but if you are unsure how manage or even fix your credit score, you can rely on our team to help you out.

We have helped many clients, year after year ditch their bad credit mortgage for a traditional mortgage, this all comes down to understanding what caused our client to have bad credit in the first place. When we work with clients our team works to understand the main reason for the bad credit and then we go to work to put in a plan to help with resolving the issue. We recommend that you contact us to see how we can help you with improving your credit score so we can help get you a mortgage that is more in line with a traditional mortgage.

You want to consolidate your debt:

If you have high interest consumer debt, refinancing can be used as a means to consolidate your debt. In this case, the new mortgage that you get through refinancing would be for the amount of your current mortgage plus the amount of consumer debt that you want to consolidate (most lenders allow you to borrow up to 80% of your home equity when you refinance).

The additional money that you borrow in your refinance is given to you in cash so that you can pay off your other debts. Because mortgage interest is typically much lower than interest on other unsecured debts, you could end up saving hundreds or even thousands of dollars in consumer interest charges as well as be able to pay off your debt much faster.

Our team has helped many clients with consolidating their debts into their mortgage, with a simple refinance. We can help you eliminating your high interest debts and help you save money right away by lowering the overall interest you are paying on your debt with one low interest rate. This means our team can help you trade the high interest rates on your credit cards, loans, lines of credit, car payments, or any debts you are paying and make one low affordable payment. Our mortgage refinance process for consolidating your credit is an easy one and will help you save hundreds and thousands of dollars a month.

You want to borrow money:

Another reason why you might want to refinance your mortgage is to borrow money. Since refinancing allows you to borrow from your home equity at a much better rate than a credit card or other type of loans, it could be a good option when you are in need of money to finance a large expense such as a home renovation, or a business investment.

Depending on the amount of money you are looking for, our team can help design a mortgage refinance that works in your favour. We help clients on a regular basis get the money they nee from their home as easy and quick as possible. Make sure to contact our team today to see how we can help you with getting you the money you need.

How do I know if refinancing is right for me?

Although refinancing your mortgage has many advantages, it may not always be the right choice. You need to ensure that the amount of money you save will be more than the amount that you’ll have to spend on any financial penalties. A good rule of thumb is that the closer you get to your renewal date, the more likely refinancing will be a good choice. To know for certain however, you should consult with our Brampton Mortgage Broker who can run the appropriate calculations for you, and help you make sense of your finances.

Contact me today!

If you would like to learn more about refinancing your mortgage and whether it is right for you, contact me today to schedule an appointment!

What is Private Mortgages?

What is a Private Mortgage? Most people, when they think about mortgages immediately think of the traditional mortgages that one might get from a bank or credit union. But did you know that more and more, private mortgages are playing a bigger role for Canadian homeowners. Yes, it is true and our team at Brampton Mortgage Broker has put together this brief article to help you out with giving you a brief overview of what is a Private Mortgage and what you need to know. 

What is a private mortgage? 

Just like a traditional mortgage, a private mortgage is a home loan – since most Canadians cannot afford to buy a new home with just cash, they will need some form of home loan. This is where a private mortgage can come into play to help with obtaining a home loan. The main difference between a traditional mortgage and a private mortgage is that in the case of a private mortgage, the lender is not a traditional financial institution but rather a private individual(s) or company (Corporation). 

Oftentimes private mortgages are short-term, and the payments can be interest only payment – although this doesn’t always need to be the case. Usually, they also have higher interest rates than traditional mortgages since they are generally considered by lenders to be riskier investments than traditional mortgages. 


Who should get a private mortgage? 

For a long time, private mortgages have been considered to be a product for those with damaged credit. But that is not the case now, and more and more Canadians are turning to these types of mortgage financing options to finance their homes. So if you couldn’t get a mortgage through the bank, then looking at an alternate financing solution instead just makes sense. 

And while it is true, that a private mortgage can be a good option for those with bad credit, there are other reasons why you might wish to consider this type of mortgage over a traditional one. 

Reasons to consider a private mortgage include, here are four reason:

  • Bad credit – private lenders are usually much more willing to look at factors other than credit score in determining your eligibility. 
  • Self-employed – If you are an entrepreneur, you probably have a lot of tax deductions which can make it difficult for you to prove your income on paper. As a result, you may be more likely to get turned down for a traditional mortgage so a private mortgage may be a better option for you. 
  • You need to get a mortgage fast – Applying for a traditional mortgage can be a bit of a process, so what do you do when your dream home comes up for sale in a hot market? Getting a private mortgage may be your best chance of keeping that home from slipping through your fingers. 
  • You’re looking to purchase a non-traditional property – Traditional lenders aren’t always keen on approving mortgages on non-traditional properties. So, if you’re looking to buy something out of the ordinary such as a tiny house, you might want to consider a private mortgage. 

Should I get a private mortgage now or wait until I qualify for a traditional mortgage? 

Some people think that because private mortgages tend to come with higher interest rates than traditional mortgages, that they should wait until they get their financial situation in order so that they can qualify for a traditional mortgage instead. Although this is not always the case, as a private mortgage can act as steppingstone to being able to refinance your mortgage down the road to a traditional lender. But thinking of waiting to get a mortgage can backfire on you if you think only getting a mortgage from traditional lender is the way to go and if you don’t qualify that you should wait it out.

Here is the reason why that this is wrong way to be thinking along those line, due to the way home prices have been going up over the last several years, it seems like the prices of homes are never going to come down. And if you were to wait to go with a traditional mortgage lender then whatever you might save in interest on the mortgage rate, you will surely pay for more than pay in the increased price of a new home. 

So basically, this means if you were to wait, then you can see yourself being priced out of the market. It is very important to know that buying a home when you have financing options available to you to do so is always the best option rather than waiting to buy. And becoming a homeowner now, means that you can immediately start to accumulate equity in your home, so there is no need to wait if you don’t qualify with a traditional mortgage lender, you can always look at alternate financing options for your home.

Contact me today!

If you would like to learn more about private mortgages and whether one would be right for you, contact our team at Brampton Mortgage Broker today to schedule an appointment. 

What are the advantages of getting a HELOC?

If you are a homeowner in Brampton and are wondering what your options are for borrowing money, you may want to consider something called a HELOC. HELOC stands for home equity line of credit, and this financial tool can be incredibly handy when you need to finance a large purchase or expense but don’t want to be stuck with huge interest payments from other forms of loans such as your credit cards or unsecured loans.

What is a HELOC and how does it work?

A HELOC is referred to a revolving line of credit that is secured using your home’s equity. In most cases, you can get approval for a HELOC worth up to 80% of your home’s equity. A HELOC works in a way that is similar to a personal line of credit or a credit card. Once you are approved for a set amount, you can borrow as much or as little as you want but you are only required to pay interest on the money that you take out and use and not the whole entire amount of the home equity line of credit.

Unlike a regular loan that you borrow and pay back once, with a HELOC you can borrow and repay the money as often as you wish as long as you do not go over your approved limit you have in place.
So for example, you have a HELOC of $100,000 and you use $10,000 of that amount, then you will be required to only pay back the interest on $10,000. Your available limit will be $90,000 remaining until you bring the balance back to full with a payment of $10,000. Then at that point you will have an available limit of $100,000 to use.

What are the advantages of getting a HELOC?

Getting a HELOC has many advantages over other types of loans. For starters, because it is a secure loan the interest rate tends to be much lower. This can save you a lot of money if you need a larger loan – say for renovating your home, or paying off high interest debts like credit cards, car loans, etc.
Another advantage is that you don’t have to have perfect credit in order to qualify. As long as you have enough equity in your home to cover the amount that you are applying for, it is usually a simple matter to get approved. However, it is important to note that your credit score will determine the rate of interest you will receive for your home equity line of credit
And finally, because it is a revolving line of credit, you don’t have to keep re-applying. This makes a HELOC an especially useful tool for someone who needs to borrow money on a regular basis, as you will not be required to re-apply each time you pay it back.

Are the any drawbacks to getting a HELOC?

Perhaps the main drawback to getting a HELOC is that you are guaranteeing the money that you borrow using your home. Therefore, if you fail to keep up with the payments on the HELOC, the lender could recall the HELOC and ask for the total amount to be paid in a prompt manner. Just like any loan, it is important to assess your financial situation and make sure that you can handle the payments on the amount you are looking to borrow.

How do I get a HELOC?

The best way to get a HELOC is to do it through your mortgage broker. Your mortgage broker works with many different lenders and they will compare rates to help ensure you get the best possible deal. Your mortgage broker will also inform you of any financial documentation you may need and ensure that your application is complete and will be approved by a lender.

Depending on how high you want the limit to be on your HELOC, the lender may request that you get a home appraisal. If this is the case, your mortgage broker can help you with this as well. Home appraisals generally cost a few hundred dollars and an appraiser will have to visit your home in order to determine its value.
Contact me today

Getting a home equity line of credit can be a great way to ensure that you’ll have cash available any time that you need it. It’s also a great way to borrow at a low interest rate. If you are interested in applying for a HELOC, I am here to help. Contact me today to schedule an appointment so we can help get your application started.

What are the main reasons why someone would get a second mortgage?

A second mortgage can be a great tool for homeowners in Brampton who are looking to access some cash from their home equity. But what exactly is a second mortgage and how can it be used to your advantage? Here is what you need to know:

What is a second mortgage?

A second mortgage is simply another term for a loan that is secured by your home equity and registered on homes title. It does not require you to break or change your first mortgage you currently have in place. Most lenders will allow you to borrow up to 80% of your home value with very little requirements. That means that if your home is valued at $500,000 and you still have $200,000 owing on your current mortgage then you have $300,000 in home equity remaining and could potentially borrow as much as $200,000 with a second mortgage. As the total loan on your home would be at $400,000 combined at 80% of your homes total value.

Once you have obtained the second mortgage, you will have two mortgages that you will have to make your regular payments on. When the term of your second mortgage is up, you may choose to pay the balance off in full with cash or refinancing by combining your first and second mortgage into one mortgage payment and you may renew the second mortgage with the lender – just as you would do with your first mortgage when it is up for renewal.
The interest on a second mortgage will be a little higher than that of a first mortgage as it seen as more of a risk compared to a first mortgage. However, don’t let this stop you from getting the loan you are looking for as this method of borrowing is still much more affordable in terms of interest than other types of loans such as credit cards or unsecured loans.

What are the main reasons why someone would get a second mortgage?

One of the most popular reasons why some homeowners in Brampton get a second mortgage is to consolidate their outstanding debts. Compared to the interest rate on credit cards and other unsecured loans, the monthly payments can become overwhelming, and you can feel you are stuck in debt without making any real progress. But since the interest rate on second mortgages is much lower, it makes perfect sense to consolidate your debts with a second mortgage so you can lower your overall interest rate and lower your monthly payments so you can get out of debt much faster and save money in the progress.

The other main reason for getting a second mortgage is to finance a larger purchase or expense such as home renovations or start up capital for a business. As home values have gone up dramatically in recent years, so has the borrowing power of Brampton homeowners. And again, the low interest rates on second mortgages make this an appealing option for those looking to borrow large sums of money.

Are there any drawbacks to getting a second mortgage?

Like any loan, you need to make sure that you are comfortable making the payments before you apply for a second mortgage. Because you will be using your home as collateral, you risk having a lien put on your home or even being put into foreclosure if you cannot make the repayments.

How can I get a second mortgage?

The best way to get a second mortgage is to do it through your mortgage broker. Because your mortgage broker is a license professional, they only work with licensed lender and will look out for your best interest and ensure you are not getting taken advantage of from unlicensed lenders if you were to act out on your own. Not to mention that a mortgage broker works with many different licensed lenders, it is easy for them to compare interest rates from various companies to ensure that you get the best possible deal.

Depending on how much you wish to borrow, the lender will require you to get verification that your home equity is sufficient. In this case, they will require you to get a home appraisal report completed from an approved list of appraisal companies. Not to worry your mortgage broker can help you arrange for one as a part of the process.
Contact me today

If you are looking for a low interest way to borrow money, then a second mortgage may be the right option for you. To further explore your options, contact me today to set up an appointment.

Bruised Credit Mortgage

If you have tried to get a bruised credit mortgage, then you know how difficult it can be. Banks will turn you away for your mortgage if your credit is not up to their strict credit requirements, leaving you to find a mortgage lender that specializes in obtaining a bruise credit mortgage. Luckily for you, this is where our team at Brampton Mortgage Broker excels, and we can help you get the mortgage you need for your purchase or refinance even with your bruised credit situation. Over the years we have approved hundreds of mortgages for clients and have developed the mortgage know how to get the job done. Our team has put this post together for you so you can gain a detailed understanding of what a bruised credit mortgage is and what it takes to get your mortgage approved.

What is a Bruised Credit Mortgage?

A bruised credit mortgage is essentially another term for a bad credit mortgage that has a slightly lowered credit score, with minor credit issues. As opposed to a very bad credit situation where your Equifax credit score is between 300 to 550. Generally speaking, bruised credit can be classified as an Equifax credit score that falls into a fair credit range of 550 to 670. Typically, clients with an Equifax credit score in the fair range of 550 to 670 have some type of credit issues but these credit issues are not a serious enough issue to decline you a bruise credit mortgage.

Not to worry, our team at Brampton Mortgage Broker specializes in getting mortgages for all situations even if your credit score is in the fair credit score rating. We have developed a large network of mortgage lenders with who we are able to leverage and get you the bruised credit mortgage approval you deserve. Our team will represent you in the best light possible, even if you have issues with your credit. We work with you to fully understand the reason why you have bruised credit and get to the root of what caused it. By gathering this information, we are able to demonstrate to our network of mortgage lenders that even though you have some minor issues with your credit, you are more than capable of making monthly mortgage payments and are qualified to receive mortgage approval.

What Causes Credit to Become Bruised?

This is such an important point to cover so you can fully understand the scope of bruised credit and how to overcome it. It’s no secret that having a credit score that is below a good or excellent rating can have a strong impact on your financial situation. It is not a secret that bad credit results in higher rates, higher monthly payments compared to those who have good to excellent credit. Although, this is the truth when it comes to getting a mortgage with lower credit score rating, our team has helped many of our clients secure a bruised credit mortgage with a great rate and low affordable monthly payments. With

Here are many factors that can cause your credit to become bruised, let’s take a quick look at some of these factors in point form.

  • Circumstances out of your control
  • Unexpected expenses
  • Emergencies requiring immediate cash
  • Borrowing more money that you can pay back
  • Taking out too many loans
  • Investments gone bad
  • Late payments
  • Bad credit that is being repaired
  • Errors in the reporting of your credit report

Our team understands that trying to maintain your credit score while life will unexpectedly throw itself at you with circumstances that cause you to take immediate action, will have a significant impact on your credit score. Although you can not control what originally caused your credit to become bruised, our team, however, can understand what caused you to have bruised credit and work with you to make a plan that will help you prevent it from happening again.

Benefits of Getting a Bruised Credit Mortgage

Now that you understand what causes you to have bruised credit and what it takes to get a mortgage around your credit is bruised, lets take a moment to understand what the benefits of getting a bruised credit mortgage are. Here is a list of some of the benefits our clients have been able to enjoy with a mortgage arranged by our team for their bruised credit.

  • Great mortgage rate
  • Low affordable monthly payments
  • Pay off debts and loans
  • Consolidate debt payments into one monthly payment
  • Helps with repairing your credit score
  • Accessing cash from equity for unseen expenses
  • Paying off a consumer proposal

As you can see from the list of benefits that a mortgage for bruised credit offers, getting a bruised credit mortgage is a great option to explore. You can rest assured that our team is always ready to help you with getting you a mortgage for your bruised credit situation so, you can start to enjoy the listed benefit above for yourself.

The Types of Bruised Credit Mortgage

There is no need to stress yourself out if you think there are limited mortgage options for you if you have bruised credit. In reality that is not the case, banks are not the only place where you can go to get a mortgage, you can always work with a mortgage broker. Our team of mortgages brokers at Brampton Mortgage Broker will open the doors of mortgage financing possibilities for our clients with bruised credit. We provide our clients with the right mortgage options for their bruised credit mortgage. Below are the available types of mortgages available for bruised credit clients we provide.

  • Purchasing a Home: Depending on how bruised your credit score is you will need a down payment anywhere between 20% to 25% of the appraised value. For a home purchase, it is important to note that your credit score will have an impact on the interest rate you will receive but it doesn’t impact your overall mortgage approval for a home purchase.
  • Mortgage Refinance: You will be able to refinance your mortgage up to 80% of your home’s appraised value. Your credit score does not make a difference in your approval for a mortgage refinance. However, your credit score will impact the rate of interest you will be able to receive.
  • Second Mortgage: Based on the appraised value of your home you will be able to get a second mortgage placed in the second position behind your first mortgage up to 85% of the appraised value. It is important to know your credit situation does not impact your chances of approval for a second mortgage.
  • Home Equity Loan: Based on the available equity you have in your home you will be able to get a home equity loan. Your credit score does not matter, and your approval is based on the appraisal value and available equity. Home equity lenders will approve a loan up to 85% of the appraised value minus any mortgage on the property.
  • Debt Consolidation Mortgage: You can take all your outstanding debts and roll them into one single mortgage payment. If the debt consolidation mortgage you are requesting is within 85% of your home’s appraised value minus the existing mortgage balance you already have in place. A debt consolidation mortgage does not require a minimum credit score for your approval, but your credit score could play a role in the interest rate you will be able to receive. A debt consolidation mortgage can help you with lowering your monthly expenses and saving money as the overall interest rate will be lower than your individual debts carry.
  • Private Mortgage: Based on the appraised value of the property, you can get a private mortgage up to 80% of the value. Your credit score may or not play a role in the interest rate, but the location of the property and appraisal report will impact your approval for a private mortgage.

It just goes to show the types of bruised credit mortgage options are wide-ranging. So, if you are looking to purchase a home or looking to refinance your mortgage and you have bruised credit our team can help find you a mortgage with a great rate and low affordable monthly payments. Don’t let bad credit ruin your life, you can take back control and it all starts with contacting us to get your bruised credit mortgage approved. To get started on your mortgage approval fill in the online form so we can reach out to you and find you the best mortgage option that will work for your bruised credit mortgage situation.

Fast 2nd Mortgages In Brampton

If you are looking for a Fast 2nd Mortgage In Brampton, then you have come to the right place. Our Team at Brampton Mortgage Broker are known for getting our clients Fast 2nd Mortgages in Brampton at great rates and low affordable monthly payments. If you have been turned away from your bank for a loan for any reason, then our team at Brampton Mortgage Broker can help you. Over the years have helped over hundreds of clients get approved for a 2nd Mortgage.

How Does Our 2nd Mortgage Process Work?

We have developed a simple and easy to follow process to getting you the cash you need from a Fast 2nd Mortgage In Brampton, regardless of your income situation or your credit score. But you are probably wondering how do you approve a Fast 2nd Mortgage In Brampton regardless of your income situation or credit score? That’s simple, our team at Brampton Mortgage Broker are able get you Fast 2nd Mortgage In Brampton based just the equity available in your home. Yes, you read that correctly, all we need to get you approved is to use the availability equity in your home to get you approved and not use your income or credit score.

Wow, now you’re probably thinking to yourself how is my approval is based on the availability equity in my home, then how much can I get my 2nd Mortgage approved for? Based on extensive network of 2nd Mortgage Lenders we have access to; we can approve you for Fast 2nd Mortgages in Brampton up to 85% of your homes appraised value.

Book a FREE consultation for Second Mortgage Brampton

If you are confused to as what an appraised value is, then let’s explain what that exactly is. An appraised value is generated from an appraisal report, which in turn is completed by an appraisal company. An appraisal report is a detailed findings of the property details and value of your property. This appraisal report is what helps 2nd Mortgage lenders help understand the full details of your property including the appraised value. It is important to note that not all appraisal companies are on equal grounds with 2nd Mortgage Lenders. Depending on the 2nd Mortgage Lender which will be providing you an approval, you will be able to select from an approved list of appraisers who will be able to appraise your property and send the completed appraisal report to the lender with the appraised value, so you are ready to have your Second Mortgage Approved.

Once the Appraisal report has been received by the 2nd Mortgage lender, it is reviewed for any issues that may be included in the report outlining the property. Such issues 2nd Mortgage lender look for in appraisal report are mold, extensive property damage, and structural issues, just to name a few. If you have any of these problems, then an inspection can be required to be completed and the issue will be needed to be resolved before the 2nd Mortgage lender is ready to approve your 2nd Mortgage.

Next, after the 2nd Mortgage lender has given you an approval for your 2nd Mortgage, you will be sent the approval documents to be signed and sent back the 2nd Mortgage lender. Once the 2nd Mortgage lender has received all the approval documents signed, then you will be sent to the lawyers for the final signing and receive your 2nd Mortgage funds.

SPEAK to Our Mortgage Broker

What can you use a 2nd Mortgage for?

Now that we have covered what an appraised value is, and the appraisal report, lets go into what you can use a 2nd Mortgage?

Second Mortgage Brampton

Because you are using the availability to get a 2nd Mortgage, what you can use the 2nd Mortgage for are endless. Basically, you can use the 2nd Mortgage for anything you want, such as;

  • Home Renovation
  • Home Repairs
  • Vacation
  • Education
  • Debt Consolidation
  • Investments
  • Financial Emergency
  • Health or Medical Cost
  • Business Needs
  • Bill Payments
  • Tax Payments
  • Mortgage Arrear Payments

 

You can even use the money to purchase a car, truck, motorcycle or even a boat if you want, your options are endless.

So, if you need get money for any reason and you own a home a 2nd Mortgage could be a great option for you. We have years of experience in helping clients with Fast 2nd Mortgages in Brampton. To find out how much of a 2nd Mortgage you can qualify for, contact our team at Brampton Mortgage Broker today.

How to get a Mortgage with Bad Credit

Let’s be honest, bad credit can happen to anyone, even good people can end of with bad credit with no fault of their own. With all that life throws at you, it can become downright difficult in maintaining good credit, especially if there are some circumstances beyond your control such as family or financial emergencies. Having bad credit can become a roadblock and affect your chances of getting a loan approved, so this begs to ask the following question, how to get a mortgage with bad credit.

Since it is a well-known fact that having bad credit can hurt your chances of getting a mortgage, this especially holds true when we are speaking about getting a mortgage from the banks. This is because banks have a minimum credit score requirement and if you are not able to meet the minimum score there will be a high chance that your mortgage will not be approved. The minimum credit score requirement that the bank lenders have set out is to have a credit score above 600.

That sounds great but what can you do if you don’t meet this credit score requirement, what if your credit score is below 600 say it is at 580 or below? Then asking how to get a mortgage with bad credit becomes a real point of emphases, and what mortgage options do you have available to you if you have bad credit?

Well, there is good news, you do not need to stress out over your bad credit situation because our team at Brampton Mortgage Broker has many years of experience and the knowledge in obtaining mortgage approvals for clients with bad credit. Our team has put together this post to go into some details on how to get a mortgage with bad credit. Keep reading on to the end, and if you have any question regarding your situation, make sure you reach out to our team so we can help you out with your bad credit mortgage.

How a Credit Report Impacts Your Mortgage

To understand how a credit report impacts your mortgage, we will need to briefly discuss what a credit report is. What is a credit report? Well, simply put a credit report is an outlined report that contains your credit history that is graded on a numeric scale. When it comes your credit report, there are two companies also known as credit bureaus that generate these credit reports. The two bureaus are called Equifax and TransUnion.

For the mortgages we approve for our clients with bad credit, we utilize the Equifax credit report for clients. As this is the preferred credit report for majority of mortgage lenders.

It is best to review your Equifax credit report and check for any mistakes and errors in your credit report. You can obtain a copy of your Equifax credit report by visiting the Equifax website or you can get a copy from the Borrowell website. Here are the links to each of the website so you can choose which report you want.

By reviewing your credit report on a regular basis, you will be able to ensure that credit score is up to date and reported accurately which plays a major role in you obtaining a mortgage. There are a few areas of your Equifax credit report that mortgage lenders look at in detail. These areas are, your Equifax credit score, payment history of your credit, utilization of your credit and credit inquires. Below we will look into these areas of your Equifax credit report below so you can get a better understanding of the importance of your credit report.

Equifax Credit Score

What is an Equifax credit score? An Equifax credit scores is a range of numbers that provide a grading score for your overall credit report. These numbers range from as low as 300 to as high as 800 and above. The higher your credit score rating the better. Below is a chart to show you a break down of the ratings for your Equifax Credit Score.

  • Excellent rating is having a credit score above 800+
  • Very Good rating is having a credit score between 740-799
  • Good rating is having a credit score above 670-739
  • Fair rating is having a credit score between 600-669
  • Poor rating is having a credit score between 300- 599

How does your credit score impact your mortgage approval when you have bad credit? Well, when it comes to your mortgage, some banks will approve mortgages for individuals with a minimum credit score of 600, which is referred to a fair credit score. However, majority of banks will want a minimum credit score of 670+ which is referred to a good credit score rating. But what do you do if you have a credit score of 600 or below? If your credit score is below 600 then you will need to get a bad credit mortgage. Just because you have a credit score of 600 doesn’t mean you can’t get a mortgage from a bank. It just means in your current situation you will need to get a bad credit mortgage and then work on repairing your credit score so you can be approved by a bank when you credit score is above 600.

Payment History

What is payment history? Payment history is the record of the payments you have made on the debt you carry. All payment made or missed are reported to your credit report and have an impact your credit score rating.

Late payments, missed payments, collections, and bankruptcies will have a negative impact on your credit score and lower your credit score. It is important to note that the damage done by continuous late payments, missed payments, collections, and bankruptcies can take a long time to reverse the impact it leaves. By continuing on this path, you will end up with bad credit and, often at times it can even take up to a few years to repair the damage.

However, by having a history of making payments on time, you will impact your credit score in a positive way. But if you have a history of bad credit and you suddenly start to make payments on time, then you can start to see your credit score increase over a period of a few short months to a year. This because you need to establish a history of continuous on time repayment for your score over a stable period of time, like a year or two.

How does payment history impact on your mortgage approval with bad credit? Well, when it comes to your mortgage approval, having a history of late payments, missed payments, collections, and bankruptcies will show mortgage lenders that you are not able to meet payments on your debts and will be very hesitant to approve a mortgage for you. Mortgage lenders such as banks will not be interested in offering you a mortgage as your history of payments are not on time. This will leave an impression on lenders that if they lend you money for a mortgage, you will mostly likely be late or miss payments, as your current payment history shows. So, to avoid any late or missed payments, mortgage lenders such as banks will not approve mortgages for individuals with bad credit.

Credit Utilization

What is credit utilization? Credit utilization is referred to the amount of credit you are using against the credit limit. For example, if your credit card with a limit of $10,000 and you have a balance of $7,500, then you have a credit utilization of 75% of your available credit.

You want to avoid maxing out your credit limit or getting right up to the limit across all your debts. By carrying a credit utilization of close to 100% available limit every month without bring your balance down, will do harm to your credit score. Over the long run maintaining 100% utilization of your credit limit will cost you a lot of money in interest paid.

There are a lot different views on how much your credit utilization of your credit limit should be, but our team has found that the sweet spot for your credit utilization is to be around 65% of your credit limit. However, the best method If you want to maximize your credit score, is ideally to use as much as credit you can afford to pay off immediately. Which means you want your balance at end of each month to be at $0. This is the best way of utilizing your credit and showing financial responsibility and if maintained for the long run it will help with improving your credit score.

How does credit utilization impact your mortgage approval when you have bad credit? Mortgage lenders want to see if that you are being responsible with your credit utilization and that you are not overextending yourself with unnecessary financial debt. If you have a high utilization across all your debts mortgage lenders such as banks will not be interested in offering you a mortgage. As being overextending on your credit utilization will show you are not being financially responsible with your credit.

Credit inquires

What are credit inquires? When it comes to credit inquires, there are two types of credit inquire, a hard credit inquiry and a soft credit inquiry.

Hard credit inquiries are deep drives into your credit report and are registered as hard credit hits on your credit repot. You want to limit the amount of hard credit inquiries as these types of inquiries have a direct impact on your credit score and lower your credit score with each inquiry made. Hard credit inquiries are made when you are applying for a loan, such a car loan, credit card, and a mortgage so a lender can get full understanding of your credit.

Soft credit inquires on the other hand do not have an impact on your credit score or affect your credit score. A soft hit evaluates your credit on basic level without taking a deep dive. All the necessary details on your credit report are revealed without your credit report taking a hit on your credit score. If you were to pull your own credit report, the credit inquiry would be registered as soft inquiry and impact your credit score.

How does credit inquires impact your mortgage approval when you have bad credit? Although soft inquiries do not impact your credit score, it is very possible, that by having too many hard credit inquiries alone can bring your credit report score down from 670 rating to even below 600. This is because the hard hit registered from a single hard credit inquiry will lower your credit score. So multiple hard credit hits can drop your credit score as much as 100 points in a short period of time. In order to maintain a good credit score you will need enough time for your credit score to recover from each hard hit, other wise you credit score will just be headed on a decline.

Can Someone with Really Bad Credit get a Mortgage?

The lowest credit score you can have is an Equifax of 300, which is a really bad credit score and is categorized as having a poor credit rating. But can someone with really bad credit get a mortgage? The answer is yes, but the mortgage options that are available to you if you have a poor credit rating ranging from 300 to 579 are very limited.

However, our team at Brampton Mortgage Broker, specializes in obtaining bad credit mortgages approvals for clients who have bad credit. Although the banks will not be an option for your mortgage if you have bad credit, with the help of our team, we will help secure you a bad credit mortgage regardless of your credit situation that will benefit you. Even after your bad credit mortgage approval, our team works with you and customize a credit repair program to help improve your credit score so we can help move your mortgage to the banks as soon as possible. The end goal of our team is to help you get the best mortgage possible for your credit situation. Even if your credit situation is in bad shape our team will work with you to get you back on the right track, so you are not stuck with a bad credit mortgage for the long run.

Cost of a Getting a Bad Credit Mortgage

Having good credit has significant advantages over not having good credit. Just keep this one fact in mind about your credit. It can take as little as a few days to a few months to completely ruin your credit and on the opposite side it can take many months and even years to repair your credit score.

There is no sugar coating the cost around a bad credit mortgage, when you have bad credit, you can almost be certain that there will be a cost of getting a bad credit mortgage. The cost of getting a bad credit mortgage will impacted in your mortgage rate, lending fees, and possibly require you to increase your down payment. Let’s briefly discuss all three points around the costs of a bad credit mortgage.

One, the mortgage rate you will receive when you get a bad credit mortgage will depend on how bad your credit really is. Generally speaking, as a rule of thumb, the rate you can estimate that you can receive when you have a bad credit mortgage is about 2% higher than what the bank offer for their interest rate. So, for example, if the bank is offering a rate of 1.99% then a bad credit mortgage rate can be somewhere around 3.99%. Just keep in mind this is just a rough idea, and to know what rate you can qualify for make sure to reach out to our team so we can properly look into your credit situation.

Two, the lending fees involved in getting a bad credit mortgage will depend on the mortgage lender that will approve you bad credit mortgage. When it comes to the lending fees, all mortgage lender who approve bad credit mortgages will have lending fees that vary. The lending fees that they charge will depend on your particular bad credit situation. If in your case, you have slightly bad credit then you may be able to get your mortgage approved with very low-cost lending fees. But if your credit score is in really bad shape then you will most likely be on the very high end of lending fees that bad credit mortgage lenders charge. As a general guideline you can estimate 1% of the mortgage amount for the lending fees when it comes to getting a bad credit mortgage. For example, if your mortgage is for $350,00 then the lending fees at 1% will equal to as low as $3,500. Again, just keep in mind that this is just a rough idea, and we advise you to reach out to our team to find out how much lending fees will be for your bad mortgage situation.

Three, furthering your down payment when you are buying a home with bad credit. In Canada, the least amount of down payment you can put down when purchasing a home is 5% but this is reserved for those who have excellent credit. But if you have bad credit then the least amount you can put down is 20% as a down payment. Just keep in mind that this is just the minimum and depending on how bad your credit situation is you maybe required to put down a larger down payment. For example, if you have had a consumer proposal or a bankruptcy then your minimum down payment can be of 25% of your home purchase price. However, other factors do come into play here, when we are talking about down payment for a purchase of a property. These factors may include type of property you are purchasing, location of the property, and what the intended use of the property will be, in addition to your credit score and credit history. Just note that these down payment figures are just estimates and to get a definite down payment amount for your bad credit situation, we strongly advise you to reach out to our team to find out how much of a down payment you will need for your home purchase with bad credit.

After discussing all these points, don’t be intimidated by what you think it will cost you to get a bad credit mortgage, we strongly recommend you reach out to our team and get the exact numbers for your bad credit mortgage situation. It is an important fact to know that bad credit mortgages are meant to be a short-term solution to your financing situation and are not meant to be for a long period of time. Once our team has worked with you to overcome your bad credit, then we will immediately work to move your mortgage to the banks.

Why Work with us for your Bad Credit Mortgage

We have helped over hundreds of clients over the years obtain a mortgage for their current situation even with bad credit. We are able to arrange mortgages for our clients with great rates and low affordable payments for their bad credit mortgage. We are trusted and highly reviewed by our clients for the mortgage services we provide. We understand that having bad credit can make things difficult, but it doesn’t have to be that way, we can help make your situation better and help get your mortgage approved. We have access to a large network of bad credit mortgage lenders that our team is able to leverage to get your bad credit situation approved no matter how difficult it may seem. We have the experience and mortgage knowledge to help you. Don’t wait any longer apply online or give us a call today!

Approving Bad Credit Mortgages in Brampton

Our team makes approving bad credit mortgages in Brampton an easy process. Even if you have a low Equifax credit score of 550 or less, our team at Brampton Mortgage Broker can find you a mortgage approval for your bad credit mortgage. Although you maybe limited in the mortgage lenders that you will be able to access due to your credit score, our team can help access bad credit mortgage lenders so you can get great mortgage rates and low monthly payments. Our team specializes in approvals for bad credit mortgages in Brampton and a member of our team is always available to help you with a mortgage approval regardless of Equifax credit score.

 

Bad Credit Mortgage Approval | Brampton Mortgage Broker – Rumy Gill

 

Equifax Credit Score Ranges for Mortgage Lenders

Below is a basic credit score range for mortgage lenders when looking at your Equifax credit score and Equifax credit report.

  • A Lenders or commonly referred to as the Bank Lenders and for the most part will require you to have an Equifax credit score of 600 to 800+.
  • B Lenders or commonly referred to Sub Prime Lenders for the most part will require you to have an Equifax credit score of 500 to 600.
  • C Lenders or commonly referred to Private Mortgage Lenders do not require you any Equifax credit score and get your mortgage approved.

How to check your Credit Score

In Canada there are two major credit bureaus companies that generate your credit score rating and report. These two bureaus are Equifax and TransUnion. Although these two bureaus do the same job in generating your credit score rating and credit repot. The credit scores these two bureaus provide are based on different criteria and the credit score ranges are different.

Equifax will report credit score ranges from a 300 score which is a poor rating to 800+ score which is an excellent rating.

Equifax credit score ranges

  • 300-579 (Poor)
  • 580-669 (Fair)
  • 670-739 (Good)
  • 740-799 (Very Good)
  • 800-850 (Excellent)

If you want to learn more about Equifax credit score range, you can click the link here and read more about it on the Equifax website.

TransUnion will report credit score ranges from 300 score which is very poor rating to 781+ score which is an excellent rating.
TransUnion credit score ranges

  • 300-600 (Very Poor)
  • 600-657 (Poor)
  • 658-719 (Fair)
  • 720-780 (Good)
  • 781-850 (Excellent)

If you want to learn more about TransUnion credit score range, you can click the link here and read more about it on the TransUnion website.

As you can see the credit score ranges are reported differently on both Equifax and TransUnion. This is because debts are reported differently and some of your debts not shown on your Equifax credit report, but they appear on your TransUnion credit report. This can also be the case for your TransUnion credit report, where some debts are not shown but they appear on your Equifax report.

It is important to note that the mortgage lenders who we work with approving bad credit mortgages in Brampton for clients, use an Equifax credit report. It is very important to make sure your Equifax credit score and report are up to date and is accurately reflect your debts, so you can get the best rate for your bad credit mortgage.

Repairing Your Credit Score

In order to obtain the best possible mortgage rate for your bad credit mortgage you will need to work on repairing your credit score in the long run. The sooner you are able to start working on the process of repairing your credit score the sooner you will be able to obtain the best mortgage rate possible for your mortgage.

As you may already know there are tons of tips and tricks on how to repair your credit score on the internet and can just be downright confusing. For simplicity, we will go over a few simple ways that can help you start repairing your credit score.

  • Paying off your debts: Paying off your debts will provide a boost to your credit score. If your debts are too large, then you can start with paying off all your small debts and then build up to pay off the larger debts one at a time.
  • Making payments on time: Make sure you are making regular monthly payments towards your debt. Make sure you always make your payments on time even if it is just the minimum payment. However, you want to aim for more than just the minimum payment amount so you can bring down the overall balance.
  • Apply for credit: Applying for credit can help boost your credit score and help with managing your debt. For example, applying for a line of credit with an interest rate of 7% to consolidate and pay off your credit cards which has an interest rate of 18% is beneficial. The interest rate on the line of credit is significantly lower and will save you money. Just remember to not over do it and not to apply for credit every month for newest credit card or store card, just apply for credit you will be able to pay off and use responsibly.
  • Utilization of credit: it is important to not use all your available credit. You want to stay under 65% of your credit limit as much as possible and always try to pay off your debts fully.

Now that you know what you can do to start repairing your credit score, just keep in mind that in general it can take a minimum of up to 6 months before you start to see improvements in your credit score. Don’t let this stop you from starting on the process of repairing your credit score, the sooner you start the sooner these 6 months will come and go, and your credit score will be better off for it.

Mortgage Broker for Approving Brampton Bad Credit Mortgages

Our team at Brampton Mortgage Broker have the experience and the bad credit mortgage know how to get you the approval you are looking for. Regardless of your bad credit score and bad credit history our team can obtain a mortgage that works best for you and your bad credit situation. That means even if you had or are currently going through the follow:

  • Bankruptcy
  • Consumer Proposal
  • Late Payments
  • Missed Payments
  • Mortgage Arrears
  • Foreclosure
  • Divorce
  • Judgement
  • Loss of Job
  • Or any other reason that has resulted in a bad credit score

Regardless of any reasons for your bad credit score, our team can help and have helped hundreds of clients with approving bad credit mortgages in Brampton. We have access to a large network of bad credit mortgage lenders in Brampton and we can provide you with a mortgage approval with a great rate and low affordable monthly payments.

To get the right advise for your bad credit mortgage make sure you contact our team at Brampton Mortgage Broker. A member of our team is ready to get help with approving bad credit mortgages in Brampton. Don’t wait any longer apply online or give us a call today.

Refinance Your Mortgage for Home Renovations

It’s no surprise low Mortgage interest rates can motivate you to Refinance your Mortgage so you can get the cash you want to complete Home Renovations you have been holding off on, all the while enjoying low monthly payments.

Our team at Brampton Mortgage Broker knows firsthand how costly Home Renovations can be, and to come up with a large amount of cash in an instant can be downright difficult. Not to worry, if you have been thinking about starting a Home Renovation or completing the Home Renovation that you have already begun, then Refinancing your Mortgage can be a great option. Refinancing your Mortgage will allow you to gain access to your home’s equity so you can get the money you require for your Home Renovation at a low rate and low affordable monthly payments.

Our team at Brampton Mortgage Broker recommends that you Refinance your Mortgage if you are looking to complete a Home Renovation rather than using your credit cards or personal lines of credit or personal loans as those forms of debt can be very expensive. The best option as a homeowner will be utilizing your home equity through Refinancing your Mortgage for the purpose of a Home Renovation.

That’s all good, but what does Refinancing your Mortgage mean, and how does it work? To quickly explain, Refinancing your Mortgage is when you replace your current Mortgage with a new Mortgage for various reasons such as lowering your Interest rate, tapping into your home’s equity for a fast cash payout, switching from a fixed-rate Mortgage to a variable-rate Mortgage.

There are many benefits to Refinancing your Mortgage, but we’ll just list a few to keep it simple, such as, securing a larger mortgage amount, obtaining a lower mortgage interest rate, consolidating all of your debts into one payment instead of multiple payments, and getting the funds needed to complete your Home Renovations.

If you are Refinancing your Mortgage for the purpose of completing Home Renovations, here are some types of Home Renovations you can consider:

  • Kitchen
  • Bathroom
  • Basement
  • An addition of a room
  • Garage
  • Deck
  • Patio
  • Roof
  • Landscaping
  • Pool
  • Backyard
  • New Windows
  • New Appliances

As you can see from this list, there are many Home Renovations you can choose from, and all these Home Renovations are a great reasons to Refinance your Mortgage. For the most part, all major Home Renovations are well worth completing as they can improve the appearance and function of your Home and Home Renovations can also add a significant increase to the value of your home.

Now that you know what Refinancing your Mortgage for a Home Renovation can allow you to do, it’s time to talk about how much you can Refinance your Mortgage for a Home Renovation. When Refinancing your Mortgage, there is one major requirement that will need to be met, which is the amount of home equity you have available. You will be required to have a minimum of 20% equity available in your home. This will be confirmed through an appraisal report, done by an Appraisal company that is accredited and approved by the Mortgage Lender of choice you are working with.

This appraised value will allow you to be able to borrow up to a maximum of 80% of your homes value. For example, if your Homes appraised value is $1,000,000 then 80% of the appraised value would be $800,000. So, based on this example you would be able to Refinance your Mortgage up to an amount of $800,000. Just make sure the amount you are looking to Refinance your Mortgage for is suitable with the amount you are looking to obtain, otherwise, you may want to hold off.

Now that you know how much you can Refinance for and what it takes to Refinance your Mortgage for a Home Renovation, you are all set to start the process. To ensure you have stress free process, make sure to contact our team at Brampton Mortgage Broker so we can make your Mortgage Refinance an easy one.

Brampton Debt Consolidation Mortgage Relief

With many Brampton homeowners taking on more and more debt, it can become an overwhelming and even a downright challenge to manage it all but, this is where a Debt Consolidation Mortgage can help you. If you are feeling overwhelmed by debt, you don’t need to stress yourself over it, our team at Brampton Mortgage Broker can help you manage your debt properly and can reduce or even eliminate your high-interest debt entirely and change your life for the better.

At Brampton Mortgage Broker our team’s focus is on finding nothing short of the “Best Debt Consolidation Mortgage Outcome” for You! All of our Debt Consolidation Mortgage services are personalized just for you. We provide one on one consultations and tailor our services to suit your situation with a focus on arriving at the best Debt Consolidation Mortgage relief outcome for you. Helping people solve their Debt problems is our primary focus, but doing so in a responsive, friendly, and respectful manner is our highest priority.

At Brampton Mortgage Broker we pride ourselves on the exceptional service we provide to our clients, and we invite you to call or Contact Us, even if it’s just to find out more information on a Debt Consolidation Mortgage or if it just to put your mind at ease from your overwhelming stress from your debt. Our initial consultations are always free, and our consultations are offered on a no-obligation basis with no strings attached and we want to learn everything possible about your situation so we can truly eliminate your Debt stress for good.

In dealing with many clients over the years, we know it can be hard asking for help when you are overwhelmed with debt, it may even make you feel ashamed or even embarrassed, but don’t let it. The truth is debt can take a hold of anyone and turn your life upside down but, our team at Brampton Mortgage Broker understand the trying to deal with and manage debt all on your own is not easy and that’s why we always make sure to give you the best Debt Consolidation Mortgage options for your situation, so you can get back to enjoying your life without the fear and stress of debt.

Although it can be difficult to make the first call and ask for help, however, we strongly encourage you to take this necessary step and give us a call. The common theme among all of our clients that we have helped over the years, is that they say wish they had made the call to our team at Brampton Mortgage Broker sooner, and that once they did, the stress of their debt was relieved almost immediately. Just read the Google reviews they have left us for helping them with debt problems.

Remember no matter how stressed out you feel over your debt, it’s important to know that there are options available to consolidate debt, and our experienced team members at Brampton Mortgage Broker will work tirelessly to find the best Debt Consolidation Mortgage for your situation that will help change your life for the better.

An opportunity to make real changes in your life is only a phone call away.  Imagine your life with the stress of DEBT no longer holding you back!

Once you speak with us, we know you will immediately feel better knowing you have a team dedicated to working with you to help relieve you of your stress of debt. Don’t wait any longer, call or contact us today, and let our team at Brampton Mortgage Broker help you get the Best Debt Consolidation Mortgage you deserve.