Brampton Mortgage Broker – Rumy Gill

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Brampton Mortgage Broker - Rumy Gill

When you have bad credit, getting a mortgage may seem impossible or as though you’ll never be able to afford it because your rate will be so high. There are ways you can get a mortgage approval when you have bad credit, which will give you a chance to build up your credit score while working to own your own home. Here’s what you need to know about getting a bad credit mortgage in Brampton.

What is a bad credit score?

In Canada, a credit score below 600 is generally considered a low credit score. Lenders that are willing to work with borrowers who have a credit score below this are generally considered high-risk lenders and they may require borrowers to pay a higher interest rate, even in the short term, than other borrowers.
Brampton Mortgage Bropker – The Facts on Getting a Bad Credit Mortgage Approval
When you have bad credit, getting a mortgage may seem impossible or as though you’ll never be able to afford it because your rate will be so high. There are ways you can get a mortgage approval when you have bad credit, which will give you a chance to build up your credit score while working to own your own home. Here’s what you need to know about getting a bad credit mortgage in Brampton.

What is a bad credit score?

In Canada, a credit score below 600 is generally considered a low credit score. Lenders that are willing to work with borrowers who have a credit score below this are generally considered high-risk lenders and they may require borrowers to pay a higher interest rate, even in the short-term, than other borrowers.

The role of your credit report

Your credit report will follow you everywhere, and so it’s important to make sure you do your best to keep on top of your payments. The accounts, and the status on of them, on your credit report will determine your credit score and this will show lenders how reliable you are to make payments on the amount of money you borrow.

Bankruptcy and your mortgage application

Insolvencies will stay on your credit report for 6 years in Canada, including bankruptcies. This means that lenders will see this information for up to 6 years, and then it will look as though you don’t have any credit afterwards. If you are trying to buy a house after a bankruptcy you may want to look for a mortgage professional who deals specifically with these kinds of situations as they will know which lenders to approach and who is willing to work with you to rebuild your credit.

Getting a bad credit mortgage

Now that you know how certain things can affect your credit, it’s important to know how to get a mortgage with less than desirable credit in Canada. You may have to work with a private lender, which may mean that you will need to pay a higher interest rate temporarily until you’ve established that history of payments.

Depending on what your credit score actually is, you may just need to get a higher rate from a prime lender instead of dealing with a private lender. The prime lenders will have scales for what credit scores they are willing to work with and which rates apply to those scores.

Working with a mortgage broker will help you find the right options for you as talking to only one bank may not give you the right options. Mortgage brokers are connected to lenders all over the country with all kinds of options so this means you may be able to get a bad credit mortgage easier than if you’re just dealing with a bank.

You may want to pull your own credit report first just to see where you are at and what you may need to do to improve your own score. If the score isn’t too low, then it may be easier to rebuild your credit over and then apply for a mortgage as opposed to applying for a mortgage with poor credit.

Looking for a bad credit mortgage? Contact me today.

If you are looking to get a bad credit mortgage in Brampton, I can help. I work with many lenders who specialize in helping those with poor credit scores become homeowners. I will assess your current situation and help you find the mortgage that makes sense for you. Call me today to get started.

Your credit report will follow you everywhere, so it’s important to make sure you do your best to keep on top of your payments. The accounts, and their status, on your credit report will determine your credit score and this will show lenders how reliable you are to make payments on the amount of money you borrow.

Bankruptcy and your mortgage application

Insolvencies will stay on your credit report for 6 years in Canada, including bankruptcies. This means that lenders will see this information for up to 6 years, and then it will look as though you don’t have any credit afterwards. If you are trying to buy a house after bankruptcy you may want to look for a mortgage professional who deals specifically with these kinds of situations as they will know which lenders to approach and who is willing to work with you to rebuild your credit.

Getting a bad credit mortgage

Now that you know how certain things can affect your credit, it’s important to know how to get a mortgage with less than desirable credit in Canada. You may have to work with a private lender, which may mean that you will need to pay a higher interest rate temporarily until you’ve established that history of payments.

Depending on what your credit score actually is, you may just need to get a higher rate from a prime lender instead of dealing with a private lender. The prime lenders will have scales for what credit scores they are willing to work with and which rates apply to those scores.

Working with a mortgage broker will help you find the right options for you as talking to only one bank may not give you the right options. Mortgage brokers are connected to lenders all over the country with all kinds of options so this means you may be able to get a bad credit mortgage easier than if you’re just dealing with a bank.

You may want to pull your own credit report first just to see where you are at and what you may need to do to improve your own score. If the score isn’t too low, then it may be easier to rebuild your credit over and then apply for a mortgage as opposed to applying for a mortgage with poor credit.

Looking for a bad credit mortgage? Contact me today.

If you are looking to get a bad credit mortgage in Brampton, I can help. I work with many lenders who specialize in helping those with poor credit scores become homeowners. I will assess your current situation and help you find the mortgage that makes sense for you. Call me today to get started.