9 Tips to Protect and Repair Your Credit Score

With how much we use credit cards these days, your credit score says a lot of things about you. It affects many aspects of your life and can affect your future because your credit score will have an impact on your future credit limit, borrowing, and other important aspects of your finances.

Your credit score plays a huge role in your future financial decisions so it is better to start as early as possible in terms of protecting it and repairing it. Below are some tips to help you do this.

Familiarize Yourself with Your Credit History

And also your credit score. Having an understanding of what is holding down your credit score will allow you to make the important first step in repairing and protecting your credit rating.

Ask for a copy of your credit report via TransUnion Canada or Equifax Canada. It is free via mail and is available for a fee if you opt for a digital copy. Having a copy of your credit report allows you to check it for errors such as erroneous records of late payments and wrong figures in terms of how much you owe so that you can file a dispute to have those corrected.

Pay On Time

Your credit score rests on your payment history. Being late for a few days and paying a collection amount can have a negative impact on your score. Staying current with your payments has a huge positive impact.

Protect Your Credit Against Identity Theft

As more of our information gets circulated via the web, there’s more room for nefarious individuals to steal your personal details so that they can make fraudulent purchases in your name. Protect your credit history from this by using services such as one that can alert you for fraud.

Think Twice Before Hiring a Credit Repair Company

After all, they don’t have access to as much of your personal details as you do. Most of what they can do can be done by yourself so you better work on saving your cash instead.

Don’t Go Over Your Card’s Credit Limit

Going over it even just once can have a huge negative impact on your credit score.

Avoid Too Many Credit Applications

An attempt to take on multiple loans will look bad in your report while a single loan or multiple ones in a very short span of time is taken favourably.

Do Not Close Cards On a Whim

Lowering your credit limit by closing accounts that you’ve already paid off will have a negative effect on your credit score.

Take Actions to Reduce Your Debt

Paying off your debt or simply taking actions to reduce it will increase your credit rating. Consolidating debts can work wonders.

Don’t Be Too Hasty in Opening New Accounts

Too many open accounts too soon can lower your average account age thereby affecting your credit score negatively. This is why it is also wise to keep old accounts that you aren’t using open.

Need more expert tips on managing your finances and credit score? Have a chat with the mortgage experts in Toronto. Contact Toronto Mortgage Brokers today!

3 Common Misconceptions About Bad Credit Mortgages

Poor credit can lead to having a hard time getting a mortgage, but having a hard time getting a good deal is not the same as being stuck to no-possibility-of-mortgage-zone! Truth is, having poor credit is more common than you think. People who are right out of college or have had a few months of financial difficulty usually have bad credit; but the same people can get the mortgage they need if they know where to look and how.

There are many lenders and firms that are willing to help people with bad credit score get a good mortgage. Sure, the terms may not be as attractive as the mortgages that people with impeccable credit can get, but they are out there, with just slightly different terms to help cover for the additional risks the lenders will take when dealing with people with a not-so-attractive credit score.

How do you find them? Well, you have to do your research; and also let go of some misconceptions that can prevent you from getting the mortgage you need. Avoid the faulty ways of thinking below!

Getting a Mortgage Will Destroy Your Life

People with a bad credit score tend to avoid getting a mortgage because they think that doing so will ruin them financially. Wrong! Something like this will only happen of you get a loan that you have no means of paying at all.

If you make sure that your mortgage’s terms are reasonable and that you are capable of paying your monthly obligation, there is nothing stopping you from getting a mortgage. In fact, if handled correctly, a mortgage can be your way to fix your damaged credit.

Having Bad Credit Means You’ve Got No Say in the Terms of Mortgage

So many people think that they will have no bargaining chips in negotiating their loan just because they got a bad credit record. This is, of course, a fallacy. Reputable mortgage firms will talk with you and help draft terms that you’ll be comfortable with. That’s what high-quality lenders do, keeping in mind that you bargain in a realistic manner.

If you can present your requests for a change in terms in a logical and mature way, there is huge chance that high-quality lenders would be willing to meet you halfway.

Bad Credit Means You Will Pay Heavily for the Mortgage

People who have this misconception often view a lender as someone who is giving them a favour, rather than someone who is providing them a service. Because of this erroneous way of thinking, they feel that they somehow ‘owe’ more than they actually do or planning to get.

High-quality lenders are not out to take you down. Their goal is to make business and keep you (the customer), happy. The tricky part here is in finding a high-quality lender with years or decades of great track record and avoiding ones that are out to exploit you.

Looking for a high-quality lender in Toronto? Contact us at Homebase Mortgages. When banks decline, we approve!

5 Ways to Turn Your Bad Credit Around with Refinancing

No one finds bad credit attractive. It is even much worse when you need to borrow from credit facilities because it shows all the skeletons in your borrowing history. Times when you’ve defaulted in your payments for one reason or another such as failing to pay on time can gravely affect a lender’s decision to give you mortgage. A pending loan that got out of hand and bad credit from previous borrowing will magnify the problem even more. If you’re aware of all this, then there’s hope in the horizon!

What to do then? How can you boost your credit score? Proactively trying to keep your financial health in good condition can prevent you from achieving worse credit in the future, but how?

Applying for a refinancing to get a new loan with better terms and payment plan can save you a lot of money. New mortgage terms can help you pay back your debt and therefore boost your credit score. Sounds like a plan? You bet!

So how can you get a new loan when you have a bad credit history? Here are tips to help you get refinancing at much better interest rates:

Tidy Up Your Paperwork

Wrong information can break your credit score. Check your credit documents and see if the information contained therein is valid. Rectifying errors can make you more eligible for refinancing at lower interest rates.

Make it Personal

You need to make your lender understand why you have a bad credit situation and the best way to do that is to meet your lender in person. By helping your lender understand your situation, you’re letting them see what you’re doing to pay back and that you care.

Know Your Ability to Pay

Things change, and what you can afford to pay a few months ago may be totally out of what you can afford now. The good news is that you can change your loan terms to help make payments easier for you. How can you do that? By refinancing! But remember that you have to be able to convince your lenders that you have the ability to pay your new terms. One thing you can do to convince them is to show proof of your ability to pay by depositing some money in the bank or by showing proof of your expected revenue. This often leads to favourable payment terms with lower interest rates so be sure that you can hold your end of the bargain!

Have Strong Guarantors

Pick your guarantors right. The people guaranteeing your loan should have a better credit rating and score than you because this shows lenders that your guarantors believe that you have the ability to pay your mortgage. After all, being a guarantor means they’re willing to pay your loan should you default on payment. Establishing that you have a low risk of defaulting will make your lender more willing to refinance your mortgage at more favourable rates.

Shop for a Better Lender with a Strict Loan Policy

Your main goal should be to get a better credit rating/credit score and to get out of debt, so don’t be tempted to go for loans with tempting terms such as those that allow you to withdraw extra payments. Facilities that tempt you to spend more are no better than parents who spoil their children and will do you more harm than good in the long run.

A better mortgage package means that you don’t have to borrow again, because hopefully, you’ll be able to have a better hold of your financial health. A great mortgage broker can guide you to the best lenders who can offer you the best rates and terms.

Looking for a mortgage consultant in Ontario to help you apply the tips above? Allow us help you with our 60 years of industry expertise fixing bad credit and helping people like you with their mortgage. Contact Homebase Mortgages today!

 

Which Mortgage Lender is Good for Bad Credit?

bad credit mortgagesThere are two types of mortgage lenders, but which is right for you when your credit is less than perfect? Unless you consult with a mortgage broker, you may never know! Here we’re going to talk about mortgage brokers; be they conventional or alternative, there’s always a financing solution out there waiting for you. Don’t let bad credit be a road block to getting a good deal!

What Exactly is Bad Credit?

Bad credit can be different things to different people, so let’s put it into perspective: a score of “600” is considered average. Most people really land around the 550 mark, and some land around 500 who’ve had a little trouble. A score of “800” is considered the best you can have, but very few people ever have this kind of credit. So if you have “600” or better, you’re in good shape to get a mortgage from just about any lender.

If your score falls below this, you may want to consider credit repair or debt consolidation. You shouldn’t have to take a worse rate just because your credit sucks. You should be able to get everything you need from a mortgage broker. They can first tell you what you need to do to improve your credit. They’ll go over your finances and help you know if you’re equipped to get a mortgage now or if you should save up a little more.

What Are the Differences Between Mortgage Lenders?

 There are two main types of mortgage lenders: conventional and alternative. Conventional mortgage lenders will help you get the money you need to buy a home or refinance your current mortgage, but they want people who have good to great credit to borrow from them. While many will give mortgages to people who don’t have good credit, they’ll take it out in interest and make it not worth pursuing.

Alternative financing with private mortgage lenders is easy.  Instead of borrowing from a bank, you’ll be borrowing from lending companies or private individuals who give these types of loans. With an alternative lender you won’t have to worry so much about your credit score as you will your credit history.

 If you wander too far out of the 500 credit range, you’ll still need credit repair with these kinds of loans. You’re going to want to raise your score by 50 points over a few months (this is totally doable), and you’ll be able to use this as leverage to get a good loan.

Which is Right for You?

Each case is different and you’ll want to talk to a Toronto mortgage broker to find out which one will be right for you. Some people with great credit may find that a private mortgage will give them a better deal, and others with average to bad credit could get a great deal with a conventional lender. No matter what you do, make sure you have a mortgage broker working with you.

To learn more about our great rates on bad credit mortgages, click here: http://www.homebasemortgages.ca/debt-consolidation/bad-credit/

Three Reasons to Check Out Bad Credit Second Mortgages

bad credit mortgagesWhen you have bad credit getting a mortgage can be extremely difficult, but with the right mortgage lender you’re going to be able to find one that works. There’s nothing worse than finding a home and going to the negotiating table, only to find out that you don’t have the money you need to buy the house. Here we’re going to go over the pre-approval process, bad credit mortgage lenders and everything else you’re going to need to know to be successful. Let’s get started!

Do You Have Bad Credit?

The first thing you have to ask yourself is… do you have bad credit? Bad credit happens to everyone, but not all “bad credit” is actually bad. Think about it this way: if your FICO score is below 600, you could be in trouble. It will always come down to who your mortgage lender is and what their criteria are. If you’re working with someone who specializes in bad credit second mortgages you’ll have a much better chance regardless of your credit history. They’ll rely much more on the equity over your home than they do in how much credit you have available. If your credit score falls below the line, even a lender that specializes in bad credit second mortgages may be difficult to deal with.

Do You Need Money Quickly?

The great thing about equity is that it’s there when you need it to be. Different mortgage lenders will want to tap into it, and you’ll have something that you can leverage against a lender. They’ll compete to get your business and you’ll be able to pay it off as fast or as slowly as you need. There are fixed rate mortgages that work great over long periods of time and variable rate mortgages that work good for the short term.

Pay Off Your First Mortgage or Debts

Paying off your first mortgage or big debts will give you more flexibility. Make sure that your bad credit second mortgage will give you a better interest rate than the ones that you’re trading off with. When you choose us as your Toronto mortgage broker, you’ll be able to have a fresh pair of eyes help you look over the information. We’ll help you know if this is really the right decision for you, if you’re going to be able to save money by taking out more debt.

If you really want to find lenders with bad credit second mortgages, you’re going to need to work with us! A Toronto mortgage broker will know everyone in the area who offers these kinds of mortgages, and we’ll also be able to help you accurately gauge your situation. 

Bad Credit Mortgages Can Help You Get Into a Home Today!

bad credit mortgagesIf you have bad credit, you know how hard it can be to get the credit you need to buy a home or refinance one you own. All you need to do is find a good mortgage with a Toronto mortgage broker and you’ll be able to make your home dreams into reality, but you’ll need to make sure that you’re working with the right lenders! Lenders are what make all the difference in this kind of a deal! You’ll want someone who understands your situation and won’t judge you for a few mistakes ages ago that don’t reflect who you are today.

What Kind of Credit do You Have?

Almost no one has “good credit”, but it’s important to remember that everyone has different definitions for good and bad credit. If you want to know a range that you have to watch out for, it’s going to be the 600+ FICO score range. Anything above a 600 is considered nominal to great, but anything below that is considered a red flag. You’ll want to talk to a Toronto mortgage broker before you proceed to know what kind of chances you have and which kind of lender will be right for you.

What Lenders Give Bad Credit Mortgages?

Almost every kind of lender gives out this kind of mortgage, but you’re going to want to make sure that you choose the right one for you. Some mortgage brokers will tell you to look at private mortgage lenders, others will tell you to lean more towards conventional mortgages.  Whatever you do, you’re going to want to talk to many different lenders before you decide on the one that will lend you the money. They’re going to have to offer you one heck of a deal before you just sign up with them.

Know Who You’re Dealing With

Knowing what lender you’re dealing with will help you avoid any problems in the future. When you work with a Toronto mortgage broker you’ll be able to avoid the worst lenders in the area. They will know who has and doesn’t have a good reputation. The problem with these kinds of lenders is that they’re only interested in short term profits and not long term relationships. If you choose the wrong lender you could lose out on good interest rates, lose your money and even worse lose your home.  Don’t let this happen to you, know who you’re dealing with before you sign on for a bad credit mortgage.

Can You Save Money with a Bad Credit Mortgage?

If you get a mortgage that is especially formulated for people with bad credit, it can save you thousands if not more over the life of your loan. You want a lender who isn’t going to penalize you for mistakes in the past. This is why you want to make sure you’re working with the right Toronto mortgage broker before you start shopping for a loan.

Bad Credit Mortgages for First Time Buyers

If you’re a first time buyer with not so great credit, there’s no better time like the present to start looking at bad credit mortgages. Maybe you don’t have established credit just yet, or maybe you had a student loan or credit card you abused when you were younger and couldn’t repay. Whatever the reason may be that you need this kind of mortgage, we won’t judge. When we work for you as your Toronto mortgage broker we’ll be there for you every step of the way, helping you understand just how much you can get.

What is a Bad Credit Mortgage?

A bad credit mortgage is a mortgage for people who have… BAD CREDIT! Seriously though, you may have middling credit, you may not have any credit, but this is the right kind of mortgage for you. You’ll want to make sure that you’re getting one from a lender that understands your needs, so it’s important to look at what lender you’re working with before you start applying for mortgages.

Can Anyone Get One?

Almost anyone can find a bad credit mortgage, but finding the one that’s right for you is the hard part. That’s where we come in; we’re Toronto mortgage brokers that understand what lenders will give you a good deal and which ones want to take you for a ride.

We’ll also help you make sure that you can’t get a different kind of mortgage – after all, bad credit comes in many flavors. You need to know that whatever you do, you’re getting the help you need to buy a home or refinance the one you already own.

Will This Help Me Rebuild My Credit?

Yes, depending on your situation. Different kinds of bad credit mortgages will do different things. Some will help you boost your credit score by 100 points, others will help you get your credit ball rolling. It really depends on how things are structured and what you can do to make the most of your situation. It all starts by understanding where you’re at with your credit.

Have you looked at your credit report lately? Do you know what your credit score is, do you know what outstanding debts you have to deal with? The better your credit is when you start applying for mortgages the better off you’re going to be in the long run.

Is it Right for Me?

If you’re not sure a bad credit mortgage is right for you, give us a call. We’ll help walk you through all of your options and understand where you’re at. You may want to work on your credit before applying for a mortgage, you may want to look at refinancing as an option instead of getting another mortgage. Every situation is different and working with one of our Toronto mortgage brokers will help you know where you’re at.

Visit our Bad Credit Mortgage page today to learn how we can help you: http://www.homebasemortgages.ca/debt-consolidation/bad-credit/

Are Home Mortgages Hard to Get with Bad Credit?

bad credit mortgagesIf you have bad credit you might think that you just don’t have options in home mortgages; but with a mortgage broker you’ll be able to get the money you need to buy a home or refinance your current one. They’re not hard for people with bad credit to get, but you’ll want to make sure that you get the right one for your needs. There are no “one size fits all” financing options, so don’t let someone try and pawn off a bad home mortgage on you. Here we’re going to talk about how to choose a Canadian home mortgage that’s right for you, so let’s get started.

What is a Home Mortgage?

The word “mortgage” sounds so serious, so final, that it can be a little intimidating. It basically only means that the full amount is due at the end, or upon “death”, of the loan. You’ll be able to start paying it immediately or sometimes it will be deferred by certain lenders. You’ll want to make sure that you get pre-approved before you start looking for homes.

Why is Pre-Approval Important?

Pre-approval means being able to get the financing you need before you need it. You could get it with your normal lender, but you may want to consider going to a Toronto mortgage broker to see if you can get a better deal. There are many different kinds of loans that you can get like second mortgages, private mortgages, home equity loans and more. You’ll need someone who can help you through the process and to understand what you’re actually trying to do with your loan and what your needs are.

With pre-approval you’ll fill out the same paperwork as a regular mortgage, but instead of turning it into one lender your Toronto mortgage broker will take the paperwork and apply on your behalf to many different lenders. This will maximise your chances for the best loan while minimising your chances of getting a bad mortgage and taking a hit on your credit.

Is it Hard to Get a Mortgage?

Many Canadians have bad credit, but that shouldn’t be a roadblock to getting a mortgage or any kind of financing. You’ll always be able to use your home has collateral with any kind of financing, but you will want someone on your side who can help you get the best deal on financing. This means you’re going to need a mortgage broker who knows what they’re doing

The right broker will be able to help you understand if you should do credit repair like debt consolidation to improve your chances for getting a better interest rate.  Most lenders, no matter how open minded, will look at your credit history when considering you for a loan. You want to get the best interest rate possible you may need to work on your credit before you begin to apply to different lenders. Ask for help with your application and you’ll be able to get a home mortgage even with the worst credit.

Contact us today and see what we can do for you.

Can I Get a Mortgage with a 550 Credit Score?

bad credit mortgagesYou can get a mortgage, but it’ll be a bad credit mortgage. These can be a great option if you haven’t had much of a chance to get your credit score higher or if you’ve just had bad luck with borrowing. You’ll need to understand subprime lending, how bad credit affects interest rates, mortgage points and your down payment before you start looking – by working with us as your Canada mortgage broker you’re going to get all the help you need to find a mortgage that won’t break the bank. You’ll always want to understand all of your options before you start applying, so let’s get started.

550 isn’t Bad, but it isn’t Good Either

You can go lower, but you can’t go much lower. This is in just the right area where you might be able to work on your credit enough to get a normal mortgage without extra interest points or a co-signer. You’re going to want to work hard to make your credit bump up to the 600-620+ range.

What are Sub-Prime Loans?

Sub-prime mortgages have had a bad rap lately, but used right and with full knowledge of just what they are they’re not so bad. They help people that wouldn’t qualify for traditional financing get a bad credit mortgage and buy a home, but it’s important to understand the fine print. Working with a broker like us you’ll be able to find the one that works best for you; if you try and do this on your own research them thoroughly and understand the benefits and risks.

What are Mortgage Points?

Mortgage points are a percentage of the value of your home that your lender charges you on top of your mortgage to get a little money out of you. It’s generally going to happen when you apply with bad credit, but when you work with one of our Canada mortgage brokers we’ll make sure that you get the lowest points possible. You shouldn’t have to pay more just because you have bad credit, and with us you won’t have to.

Bad Credit Affects Interest Rates

When you have bad credit, you’re going to end up with a higher interest rate, that’s just how it goes. We’ll work hard to bring this down as much as possible, but by working to bring down how much you owe (while keeping good accounts open), you’ll be able to raise your credit score and get a better interest rate when you apply.

Have a Higher Down Payment

If you can provide a 20% down payment you’re going to be able to get a much cheaper mortgage, even if you do have bad credit. Mortgages can be real pain if you have to pay private mortgage insurance; pair a 1% PMI payment plus 3 points of interest, interest payments AND your principal you can easily end up underwater. Don’t let this happen to you, work with us and get the mortgage that’s right for you.

Visit our bad credit mortgage page today to learn more!

Can a Low Credit Score Wreck Your Chances for a Good Mortgage?

bad credit mortgageIf you’re looking for help with bad credit, mortgages can be hard to find – that’s when you’ll want to turn to bad credit mortgages. When you work with one of our Toronto mortgage brokers you’ll have someone on your side to help you figure out how to get the best mortgage. Is your credit really that bad? Do you even know what your score is? Why are lenders so skittish when it comes down to scores below 600? Here we’re going to answer these question and more, so let’s get started and figure out if it’s the best one for you.

What is a Good Credit Score?

An “okay” credit score lies between 600 and 650, while a “great” credit score is 700. If you’re below 600, you’re in trouble! It’s okay though, because you can still fix things. You’ll want to get a copy of your credit report and look for any problems. Accounts that you never paid off, accounts you never had (errors) and more will need to be rectified before you even think about getting any kind of mortgage, much less a bad credit mortgage. Working with one of our Toronto mortgage brokers you’ll be able to get the most out of your next mortgage and know when you’re ready to apply.

Having the Right Down Payment Helps

You’re going to need 20% down or MORE before you apply for a mortgage. Try to get pre-approved before you start shopping for houses; this way you’ll be able to see how much money you can get now and have an idea of how much you need to improve. If you’re stuck in a situation where you just can’t get your credit score any higher, think about buying the home with someone (a co-applicant) or having a friend or family member with good credit help you qualify for a better mortgage (a co-signer). This way you’ll be able to get something more suitable in a shorter amount of time.

Finding the Right Lender is Important Too

You’ll need to make sure you’re working with a lender that has a good track record with bad credit mortgages. When you work with us as your Canada mortgage broker we’ll help you figure out what lending situation is right for you. Maybe a conventional lender will help, maybe you’ll need to go the private lending route – whatever you’re looking for, and you should let us help!

Work With Us!

We have a long history of helping Toronto borrowers find the lending situation that fits them best. There’s no such thing as “one size fits all” when it comes to your mortgage, so why approach it that way? With interest rates at near all-time lows lenders are competing for your business and you can come out on top. Give us a call today and see what we can do for you; after all, don’t you deserve a great mortgage?

Visit our bad credit mortgage page today for more information!