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Getting Approved for a Mortgage with a Bad Credit Score in Oshawa

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Obtaining a mortgage can be a difficult proposition for a person with bad credit. Mortgage loans in Oshawa can be hard to come by for people with a credit score under 600. Most prime lenders are major banks and financial institutions. The bank that holds your chequing account is likely to be one of these "A” lenders. In the event that your bank does not approve you, there are still alternatives. There are mortgage specialists and private lenders willing to help people with poor credit, even those that have declared bankruptcy. These private lenders offer competitive mortgage products that are perfect for people who have experienced credit issues in the past.

 

Most people do not find out about the state of their credit history until they receive notice that they have been denied some form of credit. Anyone who has applied to borrow money should be aware that it is possible to check your current financial standing. Your credit report, along with that of every other Canadian who has a credit file, is held by one of two major Canadian credit reporting agencies: Equifax Canada and TransUnion Canada. It is possible to obtain your credit report for free via mail; however, this credit report will not contain your credit score. The advantage, of course, is that this snapshot of your credit history comes free of charge. You can also view your credit report online, almost instantaneously, for a small fee. This also gives you the option to view you credit score, which is the number most lenders (and consumers) are concerned with.

 

What Is a Good Credit Score?

 

The credit reporting agencies Equifax and TransUnion use a scale from 300 to 900. Nine hundred represents a perfect credit rating, while 300 represent the worst credit rating. The higher you go on the scale, the lower the risk is to the lender, and vice versa. Your credit score may force you to subject to certain terms, minimum down payments, or interest rates, depending on the lender.

 

What Affects My Credit Score?

 

One of the biggest factors that affects your credit score is whether you pay your bills in full and on time. Your payment history helps lenders gauge your propensity to repay your debts as agreed upon. The amount of credit you have available compared to the total amount you have borrowed will also factor into your score. Other things that may affect your credit score are inquires, new debt, the type of debt or defaults you are incurring, and the length of your credit history.

 

Your credit score represents the perceived amount of risk you present to the lender. Typically, people with bad credit will be forced to pay a higher down payment or be subject to higher interest rates due to their credit score. It is possible to re-establish good credit through improving your repayment history. For people with bad credit, there are still mortgage options, even if you are denied by one of the big banks in Oshawa. Private lenders have been helping homeowners purchase and refinance their homes to improve their quality of life and financial standing.

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