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Mortgage Squad Advisors
Bad Credit

Bad credit? No judgment. Real solutions.

Past bankruptcy, consumer proposal, or missed payments — we work with alternative and private lenders who can get you a mortgage today, and we map your path back to a Big-6 bank within 12 to 24 months.

Credit score 500+Alternative lendersEquity-based options2+ years after bankruptcyNo judgmentPath back to a Big-6 bank
5-star rated| FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by the Principal Broker, FSRA #13737 · Updated June 2026

Bad credit? Past money trouble?
There's still a path. No judgment.
We arrange a short-term mortgage today and map your way back to a Big-6 bank within 18–24 months.
540
Beacon score · rebuild
<600
Private
600-680
B-lender
680+
A-lender
Get pre-approved What I can afford
Maya · AI · 24/7
Can I get a mortgage with bruised credit?
5-star rated| FSRA #13737| 50+ langs

At Mortgage Squad Advisors we don't see a credit score — we see a person. Our alternative and private lender network specializes in credit-bruised files. We get you in now, then refinance you into A-lender pricing once your credit heals.

What you get

Why Canadians choose Mortgage Squad Advisors.

B-lenders accept Beacon as low as 500-550
Private lenders consider Beacon-agnostic, equity-based
Discharged bankruptcy? Often eligible after 2 years (with re-established credit)
Active or recently completed consumer proposal? Specialty lenders available
Up to 80% LTV on alt-A; 65-75% on private
Exit strategy mapped from Day 1 (refi to A-lender in 12-24 months)
No-judgment process — your file is reviewed on merits, not on past mistakes
Private lenders can fund in 7-14 days
Instant check · no credit pull

Which lenders will approve your credit?

Move the slider to your ballpark credit score — see the lender tier that fits and the realistic rate premium.

Your Beacon score560
450850
Down payment / equity20%
5%50%
B-lender or private (equity-based)
Lender tier that fits your score
B ≈ +0.75–1.5%, private ≈ +2–5%
Expected rate premium
43+ lenders
Specialist lenders in our network for this tier

Below ~600 Beacon with under 25% down, expect private/equity-based options — bumping your down payment widens choices and lowers the rate.

e.g. Canadian Western Bank, MCAP, RFA Mortgage Corporation, Optimum Mortgage — and more, matched to your file.

Estimates only — a licensed advisor confirms your file. FSRA #13737.

Or ask Maya directly:

Do I qualify for a bad credit mortgage?What documents will I need?How fast can this close?
Maya · 24/7 AI advisor

Question about bad credit mortgage? Maya answers instantly in 50+ languages.

Chat Call
How it works

Three simple steps, no pressure.

1

Honest Conversation

Tell us what happened. Discharge dates, current balances, current income. We don't flinch.

2

Match The Right Lender

B or private depending on your equity, income, and credit story. We pick the cheapest path that works.

3

Approve & Plan The Exit

Fund the deal. Then we monitor your credit and refinance you into A-pricing as soon as you qualify.

Run the math first

How low can your credit score actually be and still get a mortgage?

Bruised credit narrows the lender list; it rarely closes the door. With 100+ lenders including B and private, we place files most A-lenders decline outright. B-lenders accept Beacon scores from around 500 when the file is equity-supported — they offset a thin or damaged score with a larger down payment and provable income. Below roughly 500, you move into private territory, where lenders are largely score-agnostic. A private lender underwrites the equity in your home, not your past: if there is sufficient room, the score becomes almost a footnote.

The practical floor, then, is not really a number on a credit report — it is the equity and the story behind the score. We have closed files for clients whose Beacon sat in the low 500s, and others with no recent score at all. What changes as the score drops is the lender tier, the down payment expected, and the rate. The door stays open; the path simply changes shape.

Why does equity matter more than your credit score on these files?

On A-lender files, credit score and income ratios drive the decision. On alternative and private files, equity does. A B-lender will look at a 500 Beacon very differently with 20% down versus 35% down — the larger cushion gives the lender room if anything goes wrong, so weaker credit becomes underwritable. Private lenders take this further: they lend against the property first and the borrower second.

The loan-to-value reality follows from this. On alt-A (B-lender) deals, expect up to about 80% LTV on a purchase, meaning 20% down. As credit weakens or the file gets more complex, that ceiling tightens. Private first mortgages typically cap around 65–75% LTV, so you are looking at 25–35% down or existing home equity. The equation is simple and honest: the less the lender can rely on your score, the more they rely on your skin in the deal. Build the down payment, and the credit conversation gets easier.

What does bad-credit lending honestly cost?

Non-prime money costs more, and we put every number in writing before you commit — no surprises at signing. In general terms, B-lender rates typically run roughly 75–150 basis points above comparable A-lender pricing, and most B-lenders charge a lender or commitment fee in the range of about 1% of the loan. Private first mortgages sit higher again — commonly a few hundred basis points over prime pricing — reflecting the flexibility and speed they offer.

Private deals also carry fees. Expect a lender fee and a broker fee, often in the 1–2% range each on a private file, plus legal and appraisal costs. We disclose all of it in writing up front, because the worst thing we can do is surprise you. These are typical ranges, not a live quote — your actual pricing depends on equity, income, and the lender we match you to. The cost is real, but it buys you something specific: ownership now, instead of years on the sidelines waiting for a bank to say yes.

How do you get back to A-lender pricing — the recovery plan?

This is the part most brokers skip, and it is where we earn our keep. A B or private mortgage is a bridge, not a home. From day one we map your exit. Step one is getting you funded now on the right alternative product. Step two is re-establishing credit deliberately: two clean tradelines — a secured card and a small installment loan work well — reported on time every month, with utilization kept under 30%, ideally under 10%. Twelve to eighteen months of clean reporting moves most Beacon scores materially.

Step three is the refinance. Once your score recovers and the file ratios work, we move you into A-lender pricing, typically within 12 to 24 months. The savings on that refinance often exceed what you paid in B or private premiums over the bridge period. We monitor your credit through the term so we can act the moment you qualify — your A-lender exit is mapped, not hoped for.

What about bankruptcy, consumer proposals, collections, or self-employment?

Specific situations need specific answers, and we have placed all of them. Post-bankruptcy: most lenders consider you generally around two years past discharge with re-established credit — two clean tradelines reporting for 12+ months — though strong offsetting factors can shorten that. Consumer proposal: there are specialty paths even while a proposal is active and current, and options widen sharply once it is paid out and discharged. Collections: outstanding collections usually need to be paid or explained, but they rarely sink an otherwise solid, equity-supported file.

Missed payments are weighed by recency — lates in the last 12 months hurt most, and we disclose every one rather than let an underwriter find it. Self-employed with bruised credit is our home turf: we document income through bank statements and notices of assessment instead of relying on a tidy T4. Newcomers building Canadian credit get a parallel plan to establish tradelines fast. No judgment, and we work in 50+ languages so nothing gets lost in translation.

“I had a consumer proposal two years ago and assumed no one would touch me. My advisor never made me feel judged — just helped me find a path forward. We closed in 10 days.”

— David M., Alternative Lending Client, Toronto ON
FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

How low can my credit score be?
B-lenders go down to ~500. Private lenders are largely score-agnostic — they care about equity. Below 500, expect to need at least 25-35% down or equity.
I just had a bankruptcy. When can I get a mortgage?
Generally 2 years post-discharge with re-established credit (at least 2 active trade lines reporting clean for 12+ months). Some lenders will consider 1 year post-discharge with strong offsetting factors.
Active consumer proposal?
Some B-lenders will consider an active proposal if you're current on payments. Private lenders are more flexible. Once the proposal is paid off and discharged, options widen significantly.
What's the rate premium?
B-lender: typically +75-150bps over A-rate. Private: +200-500bps. The 'cost' is real but it's the bridge to homeownership today versus waiting years for the bank to say yes.
Can I improve my credit while in the mortgage?
Absolutely — and we coach you. The goal: refi to A-lender pricing in 12-24 months. Most clients save more on the refi than they paid in B-lender premium.
Will I have to pay a broker fee?
On A and B lenders, no — the lender pays us. On private files, fees are common (1-2% of the loan, disclosed upfront).
Will my missed payments be a deal-breaker?
Recent missed payments (last 12 months) hurt more than older ones. We disclose every late payment to the lender — surprising the underwriter is the worst thing we can do.
Is there a minimum income requirement?
Yes — but lower than at A-lenders. B-lenders typically want 35-40% TDS. Private lenders care less about ratios and more about equity + payment ability.

Related products

Private MortgageRent-to-own pathAlternative LendingCRA DebtConsumer ProposalWhy a broker beats a bank decline

Related guides

Go deeper on this topic.

How to Buy a House With Bad Credit in Canada (2026)7 Reasons a Mortgage Gets Declined in Canada (and What to Do Next) (2026)How Credit Scores Are Calculated in Canada (2026)

Ready when you are.

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