Bad Credit Mortgage Whitby
For many lending institutions, a good credit score is a requirement in getting approved for a loan. A bad credit mortgage is simply a higher risk type of mortgage that is offered to people with bad credit. Most bad credit mortgages in Whitby are offered by private lenders that service people who have been turned away by banks. Our brokerage specialises in connecting people with these private lenders and helping people get the best deal on their bad credit mortgage.
How to Check Your Credit Score
In Canada, credit scores are generated by Equifax and TransUnion. Most places that offer loans are able to pull a copy of your credit score from these 2 credit bureaus. You can visit the websites for these credit bureaus and request your credit score for a small fee. Our team also is able to provide credit reports for free upon request.
Private Lenders for Bad Credit Mortgages
There are plenty of private lenders who exclusively deal with people who have been turned away by banks due to poor credit. These lenders will lend based on the equity in the property and not a credit score. Private lenders are able to lend on properties for up to 85% 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 an established network of bad credit lenders in Whitby and can arrange several different offers for your to choose from.
Requirements for Private Lender Mortgages
The single largest requirement for most private lenders is something called the loan to value ratio. A loan to value ratio is simply the home’s mortgages divided by its selling price. Private lenders are known to typically work with you up to 85% loan to value rate. The numbers can vary, but 85% is the usual standard for private lending individuals and companies.
Interest Rates and Fees for Bad Credit Mortgages
With bad credit, the interest rates as well as the fees are going to be higher than those with good credit. While private lenders are more likely to provide you with a loan they are going to charge a little more since they also must pay the lawyer, home appraisal team, and all of the countless others involved in the loaning process.
How to Repair Your Credit Score
The first step is to ensure that you make all payments necessary for all utilities and credit card payments on time, each and every month. You can also open a new credit card, use it very seldomly, and be mindful that you make all of the payments on it. You can also set up an appointment with our team to discuss other options that you may have in your situation to ensure that you are still able to get the home that you need.