A bad credit mortgage is a financial solution designed
specifically to help people with credit issues to purchase a home or refinance
their home to pay off other debts. A bad credit mortgage can give Ottawa
residents the financial flexibility necessary to buy a home, fund a large-scale
renovation, or even send their kids to school. Though prime lenders and big
banks generally see people with bad credit as a risky investment, there are
private companies that provide competitive mortgage products willing to lend a
hand. Many of these companies specialize in helping people who are still in the
process of re-establishing their credit. It is possible for people with bad
credit to become first time homebuyers or take advantage of the equity they
have already built up in the pre-existing home through refinancing. Bad credit
mortgages give people the financial freedom to move forward with their life and
purchase or refinance their home.
How Can Bad Credit
Most people are unaware about the status of their credit report until there is
an issue to report. It is important to stay on top of your credit history to
understand where you stand financially. Prospective homeowners can learn more
about the state of the credit by obtaining a credit report either via mail or
online through one of Canada’s major credit reporting agencies. Your credit
report shows a brief snapshot of your financial standing, repayment history,
and available credit. All of these things affect your credit score and play an important
role when lenders decide whether or not to approve you for a loan agreement.
Having bad credit can affect your ability to finance large-scale purchase such
as buying a home, owning a car, or even obtaining a new credit card. Even if
you have tarnished your credit rating, you can re-establish a good credit score
by showing a good repayment history over a few years. Bad decisions and
defaults can have implications on your credit for many years to come, up to 10
years depending on the type of loan. For those people with bad credit, it can
be incredibly difficult to be approved by a bank for a mortgage.
Private lenders have stepped in to fill the void left by
banks and other large financial institutions that have tightened up their
lending standards. By offering competitive mortgage products, these private
lenders offer an alternative solution for people that have been denied by their
bank. Private lenders are also a great alternative for people looking to "flip”
properties or for those properties that require extensive home renovations.
These fixer-upper type properties may be hard to secure a mortgage for from a
bank; whereas private lenders may be more willing to approve your
If you have bad credit and are looking to secure a mortgage
or refinance your Ottawa home, seeking the help of a mortgage specialist is a
great way to start. Hiring a mortgage specialist can help save you time and
money, while giving you the best chance to get approved for you mortgage loan.