No one likes to hear that they have bad credit. Mortgage
lenders in Brampton understand that people may want to own a home while still
in the process of re-establishing good credit. Most banks and other large
financial institutions are tightening their qualification standards, making it
more difficult for people with subpar credit to be approved for mortgage loans.
There are private lenders who are willing to help. These private lenders
specialize in helping people with tainted credit histories secure loans and become
homebuyers. Perhaps you are just getting out of a tight situation or an
unforeseeable event that jeopardized your good credit. Contacting a mortgage
specialist can help you secure the right type of financing and get you on the
right track to owning a home. Most people aren’t aware of the state of their
credit history until they have been denied credit of some sort. Understanding
your credit score and credit report is the first step in re-establishing a good
What Does it Mean to Have "Bad Credit”?
A person’s credit report is summarized into a three-digit number that gives
lenders a quick understanding of the borrower’s current financial standing and
ability to repay debts. The higher a person’s credit score is, the better their
propensity to repay the loan, making the loan a less risky investment for the
lender. Sometimes, people with bad credit are able to secure mortgages, albeit
at higher interest rates. This is done to compensate for the risk of defaulting
on the payment schedule. A person who has declared bankruptcy must be
discharged for at least two years and usually is forced to put down a hefty
down payment, in order to secure the home.
How Can I Learn About My Credit Score?
When you apply for credit, be it a loan or some type of credit card, a
credit file is created in your name. This credit file is stored along with the
credit histories of millions of other people and maintained by one of Canada’s
major credit reporting agencies: Equifax Canada or TransUnion Canada. You can
choose to view your credit report online or have it mailed to your home.
Obtaining your credit report via mail does not allow you the option to view
your credit score, which for some people may be the sole purpose for reviewing
the report. This option is free of charge and can take some time to receive.
You can also view your credit report online, which allows you to receive your
credit score. Though this option is nearly instantaneous and more convenient,
there is usually a fee associated with checking your credit report online.
Whether you’re coming out of a tight spot or simply are not in a situation
where you can wait to re-establish good credit, contacting a mortgage
specialist can help you secure a mortgage that fits your current financial
standing. Even if you have bad credit, it is possible to get a mortgage in
Brampton. Contact a mortgage specialist today to review your financial
situation and determine how much credit you can be approved for.