For many lending institutions, a good credit score is a requirement for getting approved for a loan. Our brokerage specializes in connecting people with these private lenders and helping people get the best deal on their bad credit mortgages in Whitby.
How to Check Your Credit Score
In Canada, credit scores are generated by Equifax and TransUnion. Most places that offer loans can pull a copy of your credit score from these two credit bureaus. You can visit the websites of these credit bureaus and request your credit score for a small fee. Our team also can provide credit reports for free upon request.
Private Lenders for Bad Credit Mortgages in Whitby
Many private lenders work exclusively with those turned away by banks due to poor credit. These lenders will lend based on the equity in the property, not a credit score. Private lenders can lend on properties for up to 75% of the value of the property. People who have mortgages totalling more than 80% of the home’s value will not be able to qualify with a private lender. We have a network of bad credit lenders in Whitby and can provide you with several offers.
Requirements for Private Lender Mortgages
The single largest requirement for most private lenders is the loan-to-value ratio. A loan-to-value ratio is simply the home’s mortgage divided by its selling price. Private lenders typically work with you up to a 75% loan-to-value rate. The numbers can vary, but 75% is the standard for private lending individuals and companies.
Interest Rates and Fees for Bad Credit Mortgages
Interest rates and fees for people with bad credit are higher than those with good credit. Private lenders may charge more due to additional costs like lawyer fees and home appraisals, but they are more likely to approve loans.
How to Repair Your Credit Score
Set an appointment with our team to explore other options and ensure you get the home you need.