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Mortgage Canada Bad Credit

There was a time when only people with good jobs, no loan payment issues, and expensive property as security could avail home loans from banks. Before lending you the money, the bank would run a thorough background check on you. If they found out that your credit history was poor, or you had payments pending on another loan, or you had a history of delayed repayments, you could say goodbye to the dream of owning your own home. Thanks to mortgage Canada bad credit options that you can now get loans even if your credit history is less than stellar.

Eligibility And Conditions:

The terms and conditions for eligibility and interest depend on the following:
1. Whether you are opting for first mortgage or remortgage.
2. Your employment situation.
3. Your credit history (poor/very poor/bankruptcy).
4. Citizenship status.
5. Location of the property.

In general, people with a steady income are more likely to get better loan offers, covering up to 85% of the property value. Self employed people who have been earning steadily for at least three years also stand better chances that people without regular employment or income. If you merely defaulted in some payments and compensated for them later, you have better chances than people who filed for bankruptcy or have several bad debts to your name.

One of the major problems those with mortgage Canada bad credit is that they are unable to make the down payment. In general, lenders insist on a higher down payment for people with poor credit records. This payment can be as much as 20% the value of the property. The better your record, the less is the down payment.

While mortgage Canada bad credit makes it possible for you to own a dream house, it might be a little difficult to buy a property in a rural ranch as opposed to a busy urban area. Also, you stand a better chance of obtaining mortgage if the home is in good shape.

Some mortgage brokers and lenders might charge a prearranged fee for finding or providing loans to those with a poor credit record. The better your credit history the less is the fee. Therefore, it is always a good idea to make some attempt at redeeming your credit record before you approach lenders.

Repairing Credit History:

One of the best methods to increase your chances of getting loans for purchasing a home or for decreasing the down payment is to repair your credit history. Once lenders are convinced that you have been paying loans steadily and have no outstanding defaults, they might be willing to provide you money on lower security. One of the quickest ways to repair credit record is by opting for a credit card and repaying the bills on time. Regular banks might be reluctant to offer a credit card to someone who has been declared bankrupt once. However, there are specialized lenders who offer credit cards provided you have collateral to offer. These credit cards do not allow unlimited spending. If they do, the security on them is high.

Once you have paid off all outstanding debts, which are a precondition set by many lenders, you need to stay debt free for at least two years. This interval between the first and second debts helps in repairing your credit record. If you opt for loans during this time, make sure your repayment is timely and regular.

Whether you want a mortgage Canada bad credit or simply want to check your credit record, it is always a good idea to approach Equifax or TransUnion periodically to keep an eye on your credit history. Many people refuse to take loans for what appears to be for no reason – until they find out that they have been victims of an identity theft. The thief can impersonate you, opt for loans, never pay them back, and leave you to deal with the aftermath.

You don’t have to give up your dreams of owning a fabulous home – or even a modest one – just because you were unable to repay debts in the past. There are many agencies offering mortgage Canada bad credit to someone who has taken steps to rectify their credit record. If your credit record is still bad, you should be willing to pay just a little more as down payment or fees.

Current Mortgage Rates

Mortgage Term Rate  
1 year2.89%
2 year2.19%
3 year2.19%
4 year2.79%
5 year2.44%
7 year3.79%
10 year4.39%
ARM2.10%

View All Rates & Conditions

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