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Bad Credit Mortgages Ontario

Bad credit mortgages and loans in Ontario, Canada are more common now than in the past. Our mortgage brokers are here to provide you with the assistance you need. A bad credit mortgage used to be very difficult to get. Our alternative and private lenders can provide the money you need.

You can apply for a bad credit mortgage by phone, fax or even online and get the loan you want. A bad credit mortgage can be very helpful in lowering your monthly payments. This is one of the factors that private lenders will look at. It’s a win-win situation when you save money and the private lender makes a return on their investment.

A bad credit loan has its pros as well as cons. One advantage using bad credit loan is that you can get lower interest rates on your mortgage which helps you lower the interest rate that you were paying on credit card debt.

The negative point is that bad credit loans will have higher interest rates than a bank. Arranging a bad credit mortgage can take from a few days to a few weeks. Mortgage brokers in Ontario use a point system to check your credit background. Once you are approved our mortgage agents will assist you in the entire bad credit mortgage application process.

How do banks define a bad credit mortgage in Ontario? The answer is a credit scoring is a system used by companies such as Equifax helps determine whether to give you credit for a mortgage. Before you request any credit loans in Ontario, get your credit score and a personal score analysis.

Read the information on the credit report to see if the report is accurate.  Many times, when clients are looking for a mortgage in Ontario 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. 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.

Please call us and receive your free consolation regarding an Ontario bad credit loan. We can inform you within minutes if you will qualify for a loan and let you know when the bad credit mortgage is available. Follow this link for Equifax.

Bad Credit Lenders

There are many bad credit (sub-prime) lenders in the GTA and across Ontario. These lenders are primarily interested in the value and marketability of the property. If the home owner defaults on the mortgage the property should be able to be sold and pay off all mortgage debts.

Bankruptcy

If the home owner has filed for bankruptcy or has a consumer proposal lender will be much stricter with their lending terms. A big red flag happens when the homeowner goes into high levels of debt right after the bankruptcy or consumer proposal.

High Loan to Value Ratios

Lenders generally do not like high loan to value ratios. If a house in Toronto is worth $600,000.00 and the mortgages total $540,000.00, there is still $60,000.00 in equity. The remaining equity may seem like a lot of money but if the property goes into default and a power of sale is started, all the equity will be consumed by real estate and legal fees.

Missed Mortgage Payments

Many lenders have automatic electronic payment every month. This saves the lender time and money. When the mortgage payment is NSF, the lender must manually process the payment. When a lender gets too many NSF cheques they will terminate the mortgage as soon as possible.

Improving Your Credit Score

There are a number of ways to improve your credit rating. The first step is to get a copy of your credit report from Equifax or Transunion. Look over the credit report to ensure it is correct, if there are any errors report it to Equifax and Transunion right away. Keep calling or emailing them until the error is corrected.

Next get a secured credit card from one of the banks. These cards require a deposit so that the card holder can never be in default. Never exceed 60% of the credit card limit and always make more than the minimum monthly payment. It takes time to improve your credit score, usually 6 months or longer.

 

 

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