If 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.