Canadian Banks require you to have a high credit score to qualify for a mortgage. They need to see a credit score which is not less than 550 for fast mortgage application approval. Those who have a bad credit score cannot qualify from the top lenders, so they need to find a private mortgage lender. Our staff team helps our clients apply for bad credit mortgages in Georgina.

Scores Required by Different Lenders

  • To qualify for a bank mortgage you must have a credit score of 600 or more
  • Most trust companies want you to have a 550 credit score or more
  • Private do not look at credit score to approve your mortgage

How to Check Your Credit Score

TransUnion and Equifax are the only two bureaus that process credit score for people in Canada. Banks and other financial institutions depend on them to get your credit score. We can provide a copy of a credit score report for our customers without any charges. You can also opt to go online on either of the two companies’ websites and request for your credit score. Credit score falls especially when someone accumulates too much debt, doesn’t pay his or her bills or goes into bankruptcy.

Private Lenders for Bad Credit Mortgages in Georgina

When you get your credit score and you find that it below 550, you will need to turn to private bad credit mortgage lenders. Our bad credit lenders in Georgina provide mortgages for people with any credit score. Consumer proposal and bankruptcy will not allow a person to get approved for a mortgage from a bank or trust company. We have a large network of private lenders in Georgina who provide bad credit mortgage to our clients.

Requirements for Private Lender Mortgages

Private bad credit mortgage lenders do not look at credit score to weigh if someone qualifies for a mortgage. They look at the accumulated debts on your property and the current value of the property. Private bad credit mortgage lenders are very sensitive and they will refuse to give you a mortgage if the debts that your property has accumulated is too much. To ensure that they are on the safe side, private lenders registers your property against their mortgage so that they can sell it if your mortgage goes into arrears. They calculate the Loan to Value (LTV) of your property to determine the risk involved. The LTV is usually determined by dividing the selling price of the property by the value of the existing mortgage. The network of lenders we have in Georgina can provide mortgages to people with bad credit for all homes if the LTV is no more than 80%. A good credit score coupled with a large income can help you get fair interest rate, but this does not determine your mortgage approval.

Interest Rates and Fees for Bad Credit Mortgages

Due to the risks that are involved with bad credit mortgages, private lenders tend to charge higher interests in comparison to banks. Private lenders can charge an interest rate of about seven to eight percent, while banks charge an interest within a range of two point seven to four percent. Private lenders who offer mortgage also charge an extra fee for mortgage set up. There is also a fee for administrative, lawyers for legal work and a fee for a home appraisal. When trying to access mortgage comparing different lenders deals is always paramount. Our private bad credit mortgages can provide their services within Georgina as well as in the rest of Ontario, Canada.

How to Repair Your Credit Score

Paying your bills and credit cards are the only ways that you can use in order to improve your credit score. Being timely with your payments will help to alleviate your credit score within a short duration of time. While paying bills using credit cards you get better chances of improving your credit score. The only full proof of improving your credit score in Canada is by applying for a secured credit card at a bank.

Secured credit cards are issued by all big banks and they are easy to get. In order for the card to be processed, you are supposed to pay the outstanding debts on the card. It is worthwhile to ensure that you do not use more than sixty percent of the card limit and to make timely payment of debts on the card. You find that your credit score will raise with consistent credit card payments.

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