Private mortgage lenders in Calgary are more common now than in the past. Our mortgage brokers 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 or a loss of job can affect your credit score. Most of these situations can be resolved over time and your credit score can be improved.
Our private lenders in Calgary understand that a credit score is only one component 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 private mortgages with a bad credit score.
Below 50% loan to value ratio – you can get a private mortgage, the interest rate should be very competitive.
Between 50% – 75% loan to value ratio – you can get a private mortgage, the interest rate should be very competitive.
Between 75% – 85% loan to value ratio – you should be able to 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 bad credit mortgage in Calgary they will find that creditors have not reported information correctly. The bad credit rating may come as a surprise to both you and the lender.