Can you get a mortgage with bad credit in Canada?
The short answer: yes. B-lenders lend from about a 600 score, and private/equity-based lenders can fund with little or no score. The rate is higher and you’ll want an exit plan — here’s exactly how it works and how to qualify.
Score sets your starting tier — a bigger down payment or more equity offsets it.
See what you qualify forYour path by credit profile
Prime pricing — bad credit isn't a factor here. This is the target to graduate to.
A slightly higher rate; a strong file (low LTV, stable income) still qualifies.
Equity-based options fund you now, with a planned exit to A-pricing in 12–24 months.
Discharged bankruptcy, new to Canada, or thin file — private lends on equity, not history.
Bad credit is rarely a flat “no” — it changes which lender and what rate, not whether you can buy. A larger down payment or more home equity offsets a low score, because the lender’s risk drops. We model your whole file against 100+ lenders to find the lowest tier you qualify for today.
Get in now, then graduate to prime.
The strategy for bruised credit is simple: place a B-lender or private mortgage today, use the next 12–24 months to re-establish two clean tradelines and keep every payment current, then refinance to A-lender pricing. You own the home the whole time — the higher rate is a bridge, not a destination.
How a bad-credit mortgage actually works in Canada
“Bad credit” is a range, not a wall. In Canada, prime A-lenders — the big banks and monoline lenders — generally want a score in the high-600s or better, backed by provable income and a clean recent history. Fall below that and you don’t leave the market; you move to a different tier of lender that prices for the added risk. Your score sets your starting rate, but the rest of your file decides how close to prime you actually land.
B-lenders (also called alt-A) are regulated lenders built for borrowers the banks decline — bruised credit, self-employed income, or a debt ratio slightly over the line. They typically want around 20% down and charge a rate a point or two above prime plus a modest lender fee. Because they weigh the whole picture, a larger down payment, a co-applicant, or a clean recent 12 months can offset a low score and earn a better rate than the number alone would suggest.
Below the B-lender range, private lenders approve on equity rather than credit. If there’s enough value in the property, they can fund with little or no score — the usual path after a bankruptcy, a consumer proposal, or a stretch with no reporting history. Private money costs more and is meant to be short-term, so it always comes with an exit plan: repair credit over 12–24 months, then refinance down to a B- or A-lender.
The through-line: almost every credit situation has a path. A broker’s job is to find the lowest tier your file qualifies for today and map the route back to prime — so a higher rate now is a bridge, not a life sentence. That’s the difference between being told “no” by one bank and being shown the one lender in a hundred who will say yes.
6 things to know about getting a mortgage with bad credit
Why bruised credit rarely means no — and how to land the best tier you qualify for.
Bad credit rarely closes the door
Below the A-lender cutoff, B-lenders (alt-A) look past the score at your full file, and private/equity-based lenders can fund with little or no score. There's almost always a path — the question is the rate and the plan, not yes-or-no.
Lenders weigh the whole file
A larger down payment (lower loan-to-value), stable income, and a clean recent 12 months can pull a bruised score up a tier. We package the story — not just the number — to the lenders most likely to say yes.
There's an exit to A-pricing
The goal isn't to leave you at a high rate. We place a B or private mortgage now and map the route back to prime pricing in 12–24 months: re-establish two clean tradelines, keep every payment current, then refinance.
You can check without a credit hit
Maya gives you a realistic ballpark with no bureau pull first, so you only take the hard inquiry once you're genuinely ready to apply — no wasted pulls chipping at your score.
One application, every tier
A-lenders, B-lenders, and private capital all on a single application. We find the lowest tier your score and file actually qualify for instead of you guessing bank by bank.
No judgment, ever
Consumer proposal, past bankruptcy, collections, missed payments — we place these files every day. You'll get a straight answer and a plan, not a lecture.
Why shop your file with us
- Every tier shopped — A-lender, B-lender, and private — across 100+ lenders on one application.
- No bureau pull to start — get a realistic ballpark before the hard inquiry.
- An exit to A-pricing mapped for every bruised-credit file, not just a high-rate placement.
- FSRA #13737 · no judgment · the lowest tier your file qualifies for.