For the most part, people with bad credit have a difficult
time securing a mortgage. In Cambridge and across Canada, banks are tightening
up their qualifications standards, making it more difficult for people to
secure loans. There are some private lenders who have stepped in to fill the
void, with a history of providing a variety of mortgage products to people with
past credit issues, including bankruptcy. Whether you are a first time
homebuyer or looking to refinance your home, mortgage specialists can review
your financial standing and determine how much credit you are eligible to
qualify for. Most mortgages are set up as secured loans, meaning that you
secure the loan against the asset in question, usually the home itself. If the
homeowner defaults on the mortgage payments, the asset can be repossessed by
the lender and sold to recoup their investment. However, if you have equity built
up in your home, the more money you will be approved for when it comes time to
secure a loan.
Can I Get a Mortgage with Bad Credit?
Don’t let bad credit stop you from purchasing a new home or refinancing your
current home. It is possible to secure a mortgage even with a poor credit
score. Major banks and prime lenders may turn down people that are in between
ranges due to a number of factors, including: income, down payment, property
type or value. Even if you are denied approval from a prime lender, there are
subprime lenders and private lenders willing to work with you to secure a
mortgage product that works for you.
When purchasing a home, your down payment plays an important role in being
approved. The down payment is usually a percentage of the total value of your
home. The larger the down payment, the more likely you are to get approved, as
it demonstrates that the homeowner understands how to save money. It also gives
you more of a stake in the property, which lowers the total risk from the
When choosing to refinance your home, some lenders are willing to increase your
mortgage up to 90% of the total value of your home. The more equity you have
built up in your home, the more money you will be eligible to be approved for.
As with purchasing your home, the loan is secured against your home and failure
to make the mortgage payments could result in you losing your home. This makes
it very important for homeowners to understand the terms of the mortgage and
how changes in the interest rate might affect their ability to make payments.
When applying with bad credit, it is still possible to be approved for a
mortgage from a bank or prime lender in Cambridge. In the event that you are
denied by your bank or are seeking help from a subprime lender, there are
mortgage specialists with access to a number of private lenders with a history
of helping people with bad credit. Private lenders have helped many people
purchase and refinance their homes across Canada, no matter their financial