Bad Credit Mortgage
A credit score is a simplified way for lenders to get an idea of how reliable and consistent you are at paying off debts and loans. Your credit score will determine whether you are eligible for a regular mortgage or if you will have to finance your home with a bad credit mortgage. Young people and newcomers will often be affected because they won’t have a long credit history. If you have a low credit score and are looking to purchase a home you may still be able to get a bad credit mortgage. Credit scores in Canada range from 300 to 900, and the higher your score is the better. If your credit score is below 700 and you are seeking financing for your home purchase you may be interested in looking at bad credit mortgage options with prime lenders like banks or with trust companies and other bad credit specialist lenders.
When applying for a bad credit mortgage the lender will typically look at your credit score and history, your income and employment history, the size of the down payment, and the property when deciding on if they want to provide you with a loan. The mortgage rate for a bad credit mortgage will be higher than a regular mortgage and may range above 5% and even 10% in some cases. The better your credit score and income are and the larger your down payment is the lower the mortgage rate will be.