Banks in Canada require a very high credit score before they are able to approve you for a mortgage. Credit unions are a little more lenient than banks at 550 points but both institutions cannot approve mortgages for borrowers below that point. These people have to look elsewhere for help and in Kingsville, we have a network of private bad credit lenders ready to advance mortgages regardless the score.

Scores Needed by Different Lenders

  • 600 or more points for banks
  • 550 points or above to get a mortgage from private lenders
  • Private lenders do not demand to see your credit score

Checking Your Credit Score

This is an easy thing to do as you only need to contact the leading credit bureaus in Canada and request for your credit report. These institutions play a major role in the industry by providing financial institutions a credible reference point for borrower information. Banks and traditional lenders have direct access to credit reference bureaus so that they can access any individual’s credit report. We also do credit reporting so feel free to contact us for a free copy. If you have bad credit habits like taking more debt than you can afford or delaying bill payments, it is likely that yours is a poor score.

Bad Credit Lenders in Kingsville

Do not despair upon the discovery that you have a poor credit score because there are many lenders willing to overlook that. Bad credit mortgage lenders in Kingsville are private companies and citizens whose business isn’t under too much regulation by the authorities. They are free to define their own terms when lending and that does not include credit rating. Private mortgage lenders do not care if you’re recently faced consumer and bankruptcy proposals.

Criteria for Bad Credit Mortgage Approval

Instead of credit, these lenders will look at the sales value and existing debts. These lenders are particularly sensitive to risk meaning that they will not lend to a property with exceeding property debt. They create registered mortgages, which give them the power to sell the property if the borrower fails to repay. If this happens, the lender can only get their cut once other mortgage holders are compensated.

When evaluating risk lenders calculates loan to value ratio or LTV of property. To do this you must divide mortgage value by the sale value of similar properties in that market. Kingsville bad credit mortgage lenders can extend loans on properties with LTV less than 75%. If this is coupled with high income and moderate credit scores borrowers can negotiate better interest rates.

Fees and Rates for Bad Credit mMortgages

Bad credit lenders will often charge a higher rate compared to banks as a way of mitigating risk. While banks only need 3% to 4% interest, private entities will charge more than 10% interest on mortgages. Besides the high fees, bad credit mortgage lenders require their clients to pay appraisal, legal and other fees needed to kick start the entire process. If you have the time, do not hesitate to compare prices because that is the only way to get a desirable mortgage deal. To save your time we have a network of private lenders in Kingsville to issue such loans to anyone besides having a poor credit score.

Gradually Improving your Credit Score

A credit rating is vital in today’s society where all financial institutions are interested in working with creditworthy people. Low scores not only prevent people from accessing the right credit facilities but also lead to lower quality of life. If a bank cannot approve your mortgage, for this reason, work with a private lender to get the money you need most and help you gradually improve your score for better results in future.

Even if you are not seeking a mortgage, it is possible to improve your credit score by changing the way you handle cash and credit cards. Resist the temptation to charge heavy purchases to the credit card and never miss a payment. You might also be interested in a secured credit card designed to cover your debt when unpaid payments are generated. To get one you must place a deposit that must not be consumed beyond 60%. If you remain focused on improving your score then in 6 months your score will be better.

Get a Quote

Our experts will review your situation and offer a quick approval.

    Your Name (required)

    Your Email (required)

    Phone Number (required)