Canadian banks need to see that you have a high score for them to approve a mortgage application. Banks and other lending institutions want to see a credit score of 600 or more before they can continue to approve your mortgage application. People with low credit score cannot be approved for mortgages with Canadian banks, making to turn to private bad credit mortgage lenders. Our staff helps people find lenders to provide them with bad credit mortgages in Guelph.
Scores Required by Different Lenders
Various lenders including banks depend on TransUnion and Equifax bureaus to provide them with your credit score. We also offer credit score report copy to our clients on their requests for free. You can also access a copy of your credit score from either of the mentioned Canadian credit bureaus by going to their websites. Credit scores fall when someone fails to pay their bills, takes too much debt or declare bankruptcy.
When you get your copy of credit score and it reads something less than 550, you will need to find private bad credit mortgage lenders. Our bad credit private lenders in Guelph will provide you with mortgages for any type of credit score. Consumer proposals and bankruptcy are other two factors that will lock you out of getting a mortgage from a trust company or a bank. We have a very big network of lenders who provide private bad credit mortgage in Guelph and other different cities across Ontario.
Private bad credit mortgage lenders do not demand a credit score for someone to qualify for a mortgage. They evaluate the accumulated debts on a property and estimate the selling price of the property. Private lenders usually consider the safety of their investment and they will not give you a mortgage if the debt that you have accumulated on the property is too high. They register the mortgage against your property so that if it goes to arrears they can recover their money by selling the property. They calculate the Loan to Value “LTV” of your property in order to determine the risk involved. Our private bad credit mortgage lenders can provide mortgages for all kind of homes with an LTV of no more than eighty percent. A large income and a good credit score can be of help in getting better interest rates but they do not impact approval rates.
Lenders who provide bad credit mortgage services usually charge higher interest in comparison to banks. Major banks will charge an interest that is within the range of three to four while private lenders charges an interest that is between seven to fifteen percent. Private lenders who provide these services also charge other fees that are associated with mortgage setting up. They charge administrative fees, lawyer fees for the legal work as well as home appraisal fees. Comparing fees and rates from different lenders can be a good decision in the path of getting the best deal. We provide multiple quotes on the different lenders that we have to our clients.
In order to improve your credit score you need to ensure that you pay your credit cards and bills on time. Being on time on payment of bills and other debts will make your credit score improve quickly. Another important choice that you can make towards improving your credit score is applying for secured credit card from major banks in Canada. These cards are easy to apply for and get processed. But you must pay an initial deposit which is used when you fail to pay the card’s fees. It is recommended to not exceed sixty percent of the credit cards limit.