All Canadian banks and other lenders look at credit scores before they approve a mortgage application. A credit score of 600 is what banks require someone to have to approve a mortgage. Those who do not have high credit score can turn to private lenders who offer bad credit mortgage. We help our clients connect with private lenders and apply for bad credit mortgages in Niagara Falls.
Scores Required by Different Lenders
In Canada, credit scores are generated by the credit bureaus TransUnion and Equifax. Banks can fetch peoples’ credit scores provided by these credit bureaus. Our team ca also provide a credit report copy for free. You can access your credit score report also by visiting the websites of the two bureaus. If you have a history of non-payment or you went bankruptcy your credit score goes down.
When your credit score is less than 550, you cannot get a mortgage from a bank, only private lenders can help you. The private lenders for Kitchener provide mortgages regardless of your credit score. You should know consumer proposals and bankruptcy are other two key factors that can affect you bank mortgage legibility. We have a network of bad credit mortgage lenders in Niagara Falls and other cities in Ontario.
Private lenders usually do not rely on credit score to determine your mortgage eligibility. However, private lenders are quite sensitive in that if your property has accumulated too many debts they will not approve your mortgage. Private lenders can register a mortgage against your property so that they can retrieve their money by selling it if it goes into arrears. They calculate the Loan to Value “LTV” of a property to determine the risk involved. This is done by taking the value of the existing mortgages and dividing it with selling price of the property. If your property has an LTV that is up to 80% our lenders in Niagara Falls can provide a bad credit mortgage.
Bad credit mortgage lenders in Niagara Falls usually charge higher rates so that they can compensate for the high-risk level in these investments. Bad credit lenders charge interest rates between 7% to 15%, while bank lenders charge a rate of 3% to 4%. They also charge fees associated with their lawyers, administrative staff and property appraisals. To get a good deal contact a number of bad credit mortgage lenders. We have connections with a lot of lenders that service Niagara Falls and we send multiple quotations to our clients from various lenders.
Ensure you pay your credit cards and bills on time every month. Bill payments and other timely payments will make your credit score to improve quickly. Credit cards can help improve your credit score. By putting on small credit card charges every month you can improve your credit score with ease. Getting a secured credit card from a Canadian bank can also help in improving your credit score.
Secured credit cards are offered by almost every big bank in Canada. Before you are given a secured credit card, you must pay a deposit which is used for overdue payments. Within six months of paying up your bills consistently, you will find your credit score improving.