Get Approved for a Mortgage in Cambridge Even with Bad Credit

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.

How 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 lender’s perspective.
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 situation.
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4 member reviews
    By Mark
    Thank you Canadalend for helping me with mortgage approval advice.
    so hellpful with their responses to mortgage related questions
    The Canadalend team helped me when I had no where else to turn. Thank you so much
    By Flux
    Very Helpful financing and lending information!