Bad Credit Mortgages in Toronto, Ontario

Bad credit mortgages in Toronto, Ontario are more common now than in the past, our mortgage agents are here to help you get the assistance you need for your mortgage.

There are many reasons why people have a bad credit score, simply being late on a few payments, separation from spouse, loss of job, etc. Most of these sitituations will be resolved over time and your credit score will improve.

Our lenders understand that a credit score is only one componet of your credit history. The most important factor will be how much equity you have in you home.

The loan to value chart below is for getting a mortgage with a bad credit score.

Below 50% loan to value ratio – you can get a mortgage, the interest rate should be very competitive.

Between 50% – 75% loan to value ratio – you can get a mortgage, the interest rate should be very competitive.

Between 75% – 85% loan to value ratio – you can get a mortgage, the interest rate may be higher than normal.

Over 85% loan to value ratio – very difficult to get a mortgage.

Banks use a credit scoring system provided by companies such as TransUnion to determine whether to provide a loan for your mortgage. Before you apply for any more loans, it is a good idea to get a copy of your credit score.

Read the information on the credit report to see if the report is accurate. Many times, when clients are looking for a mortgage in Canada they will find that creditors have not reported information correctly and the bad rating may come as a surprise to both you and the lender. Therefore, the best advice is to get your credit report well in advance and make sure it is accurate. If there are any errors you can contact the credit rating agencies and explain why there is an error.