Bad credit mortgages in Ajax are an excellent way for some applicants to get started in a great location. Here’s what you need to know.
Ajax is 35 kilometres from downtown Toronto. As of 2021, the town had a population of 126,666 residents. Ajax has various neighbourhoods, including Westney Heights, Lake Vista, and Carruthers Creek.
The median age of people who live in Ajax is 37.4 years according to areavibes. A full 73% of the people who live there are married couples. The median household income in the town is $110,972. That puts Ajax 35% higher than the Canadian average.
Ajax MLS® stats show the average sold price for a home in the area as of September 2022 is $928K. That represents a slight monthly dip of 3.9% and a yearly drop of 8.1%.
These statistics and others point to Ajax as an excellent place to buy real estate. If you’re interested but have had some financial difficulties, there is an alternative route. Read on to find out more about bad credit mortgages in Ajax.
When You’ve Got a Bad Credit Score
A bad credit score doesn’t mean you can’t get a mortgage. If you’ve been declined by a bank, for this reason, there’s no need to worry or panic.
Bad credit lenders in Ajax can help. They supply products that are great for people with low credit scores, perfect for those without them, and good for applicants trying to repair their credit. That applies to people suffering from the same financial hardships in Scarborough, Whitby, Oshawa, and Richmond Hill.
We help hundreds of clients like you find private lenders who provide bad credit mortgages in Ajax. Here’s some more information you’ll need to make the right financial choice.
Credit Score Numbers Required by Different Lenders
Different lenders have different requirements when it comes to credit score numbers. Here’s a quick overview.
- Equifax lists a decent credit score between 660 and 724. That will get you competitive rates at many Canadian banks.
- Trust companies want to see credit scores of 550 and 700.
- Private lenders serve clients with credit scores below 600.
Knowing your credit score numbers helps you decide how and where to apply for a loan.
What You Need to Know About Checking Your Credit Score
Here’s what you need to know about checking your credit score.
It’s important to get a copy of your credit report once a year and correct any mistakes in the document. You can get a copy of your credit report by snail mail or online for free. However, you’ll need to pay a fee to get a copy of your credit score.
In Canada, there are two agencies to deal with–Equifax Canada and/or TransUnion Canada.
What’s Included in a Credit Report
Your credit report will include information that tells lenders how you deal with your financial obligations. It will include your date of birth, address and name, employment information, and details on your credit transactions and accounts. Learn more about your credit report here.
What a Credit Score Indicates
Your credit score indicates the amount of risk you present to a potential lender. It’s a number that provides a financial snapshot of your credit information at a specific time.
Even people with bad credit scores have financial options to explore. Read the following.
Private Lenders in Ajax for Bad Credit Mortgages
It’s not impossible to get a mortgage with a bad credit score. Private lenders in Ajax provide bad credit mortgages at rates different from banks and other financial institutions.
If you have a credit score under 550, getting a mortgage from the main banks and trust companies in Canada can be challenging. It’s the same scenario when you’ve filed for bankruptcy and/or consumer proposals.
Private lenders can come to your rescue with bad credit mortgages. We provide our clients with lists of private lenders who provide bad credit mortgages in Ajax and other cities in Ontario.
Requirements for Private Lender Mortgages
Private lending is risky. That’s why private lender mortgages have a different scope.
That’s the main reason why most private lenders don’t provide mortgages for properties with a high amount of existing debt and ones in poor condition. One of the big requirements for private lender mortgages is discussed below.
The Loan-to-Value (LTV) ratio is a useful formula. It is calculated by dividing the home’s mortgage value by its selling price. Private lenders in Ajax can provide bad credit mortgages for homes with LTV of up to 75%.
Your credit score and income are other factors that can help you get a good interest rate.
Interest Rates and Fees for Bad Credit Mortgages
Bad credit mortgages have different interest rates and fees than traditional lenders. The Interest rates range from 8% to 15% depending on the current economic conditions, the applicant, and their equity. These are higher than the rates offered by traditional banks at 3% to 4%.
Additional mortgage setup costs or fees include administrative, property appraisal, and lawyer fees.
We help you get the best bad credit mortgage in Ajax by putting together multiple quotes and information from different lenders. You’ll have the opportunity to compare the terms, mortgage interest rates, and the reputation of each lender before you select one.
You can help your financial situation by tweaking your credit score. Here are a few tips that help.
How To Repair Your Credit Score
There are several steps when you’re looking to repair your credit score. What you need to do is based on your unique financial situation. However, there are several common paths most people take. They include:
- Requesting your credit reports yearly to correct any errors.
- Getting a credit card or loan to build a credit history if you don’t have one.
- Keeping credit card balances below 50% of your limit.
- Paying off phone, vehicle, and utility bills completely.
- Getting a secured credit card from your bank.
Paying your credit cards and loan installments on time is another good way to repair your numbers. Implementing these measures can increase your credit score in as little as six months.
- Introduction
- When You’ve Got a Bad Credit Score
- Credit Score Numbers Required by Different Lenders
- What You Need to Know About Checking Your Credit Score
- Private Lenders in Ajax for Bad Credit Mortgages
- Requirements for Private Lender Mortgages
- Interest Rates and Fees for Bad Credit Mortgages
- How To Repair Your Credit Score