Bad credit mortgage
Canada — a broker
who can help you qualify.

B-lenders go down to about 500 on owner-occupied fixed-rate files, and 600 on variable. Private lenders are largely score-agnostic — they often lend on the property's value rather than your income or score. Below 500, expect to need at least 25–35% down or equivalent equity.

For insured financing, insurers require you to be discharged for a minimum of two years with a minimum two years of re-established credit. B-lenders and private lenders set their own, often shorter, requirements — we have placed files well inside that window where equity and income were strong.

Some B-lenders will consider an active proposal if you are current on payments, and private lenders are more flexible still. Insured financing requires the proposal to have been fulfilled for at least two years, with two years of re-established credit. Once it is paid off and discharged, options widen significantly.

B-lender pricing sits above A pricing and usually carries a 1% lender fee. The 25 largest private MIEs averaged 9.6% on single-family lending in Q3 2025 (CMHC), plus a lender fee of ~1–2% and a broker fee of ~1–2% — typically 2–4% combined. The cost is real; it is the bridge to owning now instead of waiting years.

Yes — and we coach you through it. Keep credit utilization under 30% of your total limit (the FCAC's recommended threshold) and every payment on time. The goal is a refinance to A-lender pricing in 12–24 months. In our experience, the savings on that refinance can offset much of the premium paid over the bridge; your numbers will differ.

On A and B lenders, no — the lender compensates us on funding. On private files the borrower usually pays the broker fee directly; a lender fee of ~1–2% plus a broker fee of ~1–2% typically totals 2–4% of the loan. We disclose every dollar in writing before you commit.

Recent missed payments (the 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, and a disclosed late is far more survivable than a discovered one.

Yes, but lower than at an A-lender. Insured A-lender files are capped at 39% GDS and 44% TDS. B-lenders stretch beyond those ratios at a higher rate. Private lenders care less about ratios and more about equity plus provable ability to carry the payment.

Yes. No credit history is a different problem from bad credit — there is nothing negative to overcome, just nothing to score. Lenders substitute alternative proof: 12 months of rent paid on time, utility and phone accounts, and insurance history. Newcomers and young buyers qualify this way regularly. Private and B-lenders are the usual starting point.

On our files, a private mortgage can fund in 7–14 days once we have your documents, and a B-lender file runs close to standard A-lender timelines. The variable is rarely the lender — it is how quickly you can produce income documents, discharge papers, and a current mortgage statement.

Often, yes. A co-signer with strong credit and income can lift a file from private into B-lender pricing, or from B into A. The co-signer is fully liable for the debt and it appears on their credit report — a real commitment, not a formality. Lenders still underwrite your credit story alongside theirs.

A second mortgage from a private lender is usually available where a HELOC is not — it is equity-driven, so score matters less. HELOCs are harder: OSFI limits the non-amortizing HELOC portion at federally regulated lenders to 65% LTV, and those lenders still require acceptable credit.

Yes, if you have equity. A bad credit refinance consolidates high-interest debt into the mortgage, which usually drops your monthly obligations and lowers your credit utilization — the single fastest lever on a damaged score. Prime refinances cap at 80% LTV; a private second can go higher on the right property.