Getting a Secured Line of Credit With Bad Credit

A secured line of credit is just what it sounds like: a line of credit secured by collateral. This may be money or it could be equity in your home. Either way, you’re going to need to be able to put up something in exchange for the money that you need; here we’re going to talk about using equity in your home to get a secured line of credit. The application process is just like a mortgage. Let one of our smart Toronto mortgage brokers help you get the financing that you need to pay off your debts or make big ticket purchases.

What is a Secured Line of Credit?

This is a type of credit for people who just don’t have the best credit histories; if you have no credit at all, you may have to go this route. If you’re using one of these to buy a home they will hold equity in your house until you can pay the amount back. If you’re using these as part of a Canadian home equity loan, you’ll be borrowing against your home until youc an pay it back. Remember that you can’t borrow more than 70% of the worth of the home (they may go by the Appraised Repair Value if you’re going to use the line of credit to fix the house). This prevents borrowers from becoming “upside down” on their mortgages too quickly.

This is not a one time loan, it is a secured line of credit. This means that it operates like a credit card, allowing you to borrow, repay, borrow, etc. You’ll be able to get the money you need when you need it and repay it when you can. This type of financing is best used for big ticket purchases and one off large payments (like a debt payment), but you’ll want to be certain that you’re not losing more money than you’re paying off (e.g. paying off debt at 20% interest with a secured line of credit that has a 30% interest rate).

Can You Get a Secured Line of Credit?

Everyone is different, and there is really no way to tell if you can get a secured line of credit unless you come in and let us walk you through the process. We’ll help you fill out the paperwork, we’ll go over your credit and then we’ll help you find different lenders to see what is out there for you. Interest rates right now are the lowest they’ve been in decades, so you’ll want to make sure that you can get in on this golden age of mortgages before it’s all over.

If you have really bad credit, the good news is that you’re in the same boat as someone with poor to middling credit. You will need to put up part of your home to get this kind of secured line of credit, so let us help pair you with a great lender who will give you a fair deal today!

Also, visit our home equity line of credit page today to learn more!

Are Bad Credit Mortgages Hard to Get?

bad credit mortgagesWhen you have bad credit and you want to refinance your home or buy a new one, a bad credit mortgage may be the answer you’re looking for. You’re going to need to look at many different lenders, compare interest rates, think about how much you need and how much you can repay. This can be a major time and financial investment trying to find the right mortgage lender, or you could just hire one of our Toronto mortgage brokers to help you get the financing you need to buy a home. Just because you have bad credit doesn’t mean you can’t get financing!

What is a Bad Credit Mortgage?

Bad credit mortgages sound bad, but they’re not really. You’ll be able to get the money that you need to finance a home or refinance your current one. Here are some things that make this kind of mortgage different from a conventional mortgage:

  • Less Emphasis on Credit: Here you’re going to find a lot less emphasis on credit. You’re more than just a FICO score and lenders who give these types of loans will be more open to lending to someone who doesn’t have the best credit. You will want to bring up your FICO score as high as you can before you apply for one of these loans, or you may end up paying a great deal of money in interest payments.
  • Easier Loans: If you’ve had trouble getting financing in the past, you know how important it is to have a quick and easy application process. You’ll find out within a few weeks usually if your application has been accepted. Just because someone takes your mortgage application doesn’t mean you have to do business with that lender. Mortgage brokers apply to many different lenders on your behalf to improve your chances of getting the right loan for your needs.
  • Save Your Home from Foreclosure: If you’re facing foreclosure you may want to think about this kind of lending. It will help you stay in your house and give you easier repayment terms than you faced with your original lender. You shouldn’t lose your home just because you have bad credit, and just because you’ve already lost your home doesn’t mean you shouldn’t be able to get the money you need to buy a new one.

Is a Bad Credit Mortgage Right for You?

If you’ve had difficulty getting financing before and you want to own a home it may be the right choice for you. Just because you have bad credit doesn’t mean you can’t start rebuilding your credit. We’ll help you explore your options; when you work with one of our Toronto mortgage brokers you’ll be able to get pre-approved for your mortgage before you even start looking for a house. You’ll know how much you can expect to get, and we’ll get the interest rate as low as it can go. We’ll work until you’re happy! If you’d like to learn more, contact us and see what we can do for you today.

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

Restore Bad Credit with a Second Mortgage

Few people have perfect credit, but with a second mortgage and the right mortgage broker you can repair your credit and get the money you need to make life a little easier. First thing you should know is just because you have bad credit doesn’t mean that you won’t be able to get a decent loan. If you can’t get an ”A” grade mortgage, the bank may offer you a high risk second mortgage; it’s always best to consult with a mortgage broker to make sure that you’re getting a good rate and fixing your credit report.

Should You Take on Another Mortgage?

A second mortgage might seem like a really bad idea when you’re already in debt, but it can help. Depending on what you need your money for and how fast you need it will determine what kind of mortgage you get. If you need your money right now, you may want to get a fixed dollar mortgage to pay all of your bills off. If you need money and you’re older, you can choose a reverse private mortgage where you can live off the money and the bank takes the house once you’re gone. But how do you repair your credit with a second mortgage?

Why Do Second Mortgages Work?

Your credit score is based on something known as “debt to credit ratio”. How much credit you have available to you (your $5,000 visa card for example) versus how much debt you have. If you owe $4,000 on your $5,000 Visa card, you have a high debt to credit ratio and you wouldn’t be a good candidate for more credit. But if you take out a second mortgage and pay it on time for 6+ months, your credit score will rise since it’s an account in good standing that you’re paying off.

Can More Debt Really Repair Your Credit?

Before you apply for a second mortgage, you’re going to want to take a long hard look at your credit and see where you are. If you find incorrect information reported, you will need to dispute it; contact the lender that put the incorrect information on your credit report and ask them to request a correction with the main three credit bureaus. If you have bad credit card debt or other debts that you need to pay down, do it!

A second mortgage can help you pay off these debts quicker and easier, but you need a mortgage broker to help you get a good rate. While you may think that going with a bank is the best way to get a good loan, it doesn’t always work this way. Banks don’t really have to work to get you the lowest interest rate on your second mortgage; a broker, on the other hand, shops around for you locally and finds you the best rate for your situation.

A second mortgage can be a great way to repair your credit; just make sure you find a mortgage broker to help you get the best rate for your credit situation.

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

What is a Bad Credit Mortgage?

Bad credit mortgages are great for people who want to rebuild their credit or just need to get the money they need to get back on their feet. Bad credit is nothing to be ashamed of, and if you want to refinance your home or buy a new one, these can help you achieve your dreams. Here we’re going to go over what a bad credit mortgage is and isn’t, how they can help you get your life back on track and how you can get the best one possible. Toronto mortgage brokers (or a broker where you live) can help you do it! Let’s get started.

What Are Bad Credit Mortgages?

It’s just like it sounds: a bad credit mortgage allows you, a person with bad credit, to get the financing you need to buy a home or borrow against a home you already loan. Conventional Canadian mortgages are geared more towards people with pristine credit; if you’ve ever had problems with paying your bills or with credit, you know how difficult it can be to get back on track. A bad credit mortgage can give you the best chance at getting your mortgage; talk with a Toronto mortgage broker to see if it’s the right option for you.

Is it Hard to Get a Bad Credit Mortgage?

While these are geared towards people who have bad credit, that doesn’t mean they just hand them out willy nilly. You’re going to need to be able to show that you have a regular income and can make your mortgage payments. If you have a problem paying all of your down payment, you may have to invest in private mortgage insurance as part of the deal. You can find out more with a mortgage broker; they’ll be able to help you figure out if you need to apply for a bad credit mortgage or if you qualify for conventional financing. Each lender is different and some may not think you have bad credit!

Are There Downsides to Bad Credit Mortgages?

There can be downsides to bad credit mortgages, but these mainly come from dealing with an abusive lender. You can almost always avoid these types of lenders by dealing with a Toronto mortgage broker. They’ll be able to cut through all the bad lenders and help you find the one that will give you the best deal. No one should be stuck with a bad mortgage, and with the right help you can get everything you need to succeed with your mortgage.

Do You Need a Bad Credit Mortgage?

Just because you have bad credit doesn’t mean you’ll necessarily need a bad credit mortgage. Some people are teetering on the edge of good and bad and could just work on some credit repair issues to get things sorted out. Others will need this kind of mortgage to fix up their credit. Whatever you decide, talk to a Toronto mortgage broker first so you know what your options are. Don’t just take a mortgage because it’s offered, education yourself and know what’s out there for you!

To learn more about our great rates on bad credit mortgages, click here!

Are Bad Credit Mortgages Really Better than Conventional Mortgages?

If you really want to repair your credit, a bad credit mortgage could be the right thing for you – just make sure you have the right Toronto mortgage broker on your side like us! We’ll help you look over your credit, understand your financial situation and really know what decision will help you move forward. Bad credit can happen to anyone, but it’s important that you get on the path to repairing your credit and a brighter future. Let us help you find the right mortgage that fits your needs and your budget, a mortgage that you can live with now and in the future.

What is a Bad Credit Mortgage?

They’re just like any other mortgage you get, but they’re formulated more for people with bad credit. When you have bad credit you’re going to come up against all kinds of obstacles – from high interest rates to distrustful lenders you need to have someone on your side that can help you get the best deal. When you work with us as your Canada mortgage broker you’re going to get all the help you need to find a mortgage and a lender that fit your unique situation.

Do They Cost More than Conventional Mortgages?

No, as long as you’re working with the right lender! There are so many predatory lenders out there that are looking to fleece you – do you know the difference between a bad deal and a fraud? Hopefully not, don’t find out the wrong way when you can have us help you. A bad credit mortgage will be formulated to fit your needs with the notion of rebuilding your credit in mind. No one wants to end up with a bad mortgage just because they made a mistake, and when you’re looking at mortgages you need one that’s going to fit your needs.

Which One is Right for You?

If you have a FICO score under 600, you will almost always need a bad credit mortgage. If you have slow pays or no pays in your credit history, or you’re getting a second mortgage to settle debts, a bad credit mortgage is going to help you. If you have decent credit and you don’t have a bad history when it comes to your payments, you’re going to want to think more about taking out a conventional mortgage. Why pay more on your mortgage than you have to when you can get the right one, a bad credit mortgage that will help you rebuild your credit and get on the road to being debt free. It’s your time.

Call Us and Save Today!

We as Toronto mortgage brokers can help you understand where your credit situation is now and where it’s heading in the future. Don’t get stuck with a mortgage that’s all wrong for you when you can get the one that helps you not only rebuild your credit but get on the road to being debt free. Give us a call today and see what we can do for you.

Can Anyone Benefit from a Bad Credit Mortgage?

Virtually anyone can benefit from a bad credit mortgage, but some will do better going with a traditionally structured mortgage; here we’re going to talk about the importance of choosing us as your Toronto mortgage broker and what you can do to get ready before you apply. While lenders offer mortgages for people with bad credit, it’s important to remember that you want conditions as favourable as possible before you apply! Let’s get started.

Why Bad Credit Mortgages?

Everyone has a period in their life where their credit situation is less than perfect, but how are you ever going to recover if no one will give you a fair shake? When you work with one of our Canada mortgage brokers you’ll get all the help you need; we’ll pair you with the right bad credit mortgage lender that understands mistakes happen. You’ll be able to buy a home or refinance one, rebuild your credit and move forward with your life. If you’re sick of being stuck in your financial past let us help you move forward and get the credit you need to get started.

What Makes These Different from Conventional Mortgages?

Borrowers with bad credit are going to have different needs than those who have excellent credit; you’re going to need services like a lender that won’t penalize you for paying early (it happens!), debt forgiveness and more. They’re geared more towards borrowers that have had financing issues in the past but they can be hard to find on your own. Many traditional lenders like banks and lending groups feature these but you have to know where to look. Our expert Toronto mortgage brokers can help you find the lender that’s offering just what you need to get a mortgage.

Are the Criteria Different for a Bad Credit Mortgage?

You’ll still need to have proof of income, a deposit (if you’re buying a home) and equity (if you’re refinancing a home). If you go the private mortgage route you may be able to get a home with as little as 5% down, but this varies depending on what lender you work with. Whatever you do, please speak with us before you start applying. We’ll go over your credit report and more to help you understand how you can improve your finances and get a better deal when you apply. Just getting 10% of your debt repaid can lower your APR 5%! Why pay more than you have to?

Buying and refinancing a home can be hard, especially when you have bad credit. Mortgages for people with finance issues are out there – let us help you find the lender that will work with you! We’ll be there throughout the process and work hard to make sure you aren’t paying more than your fair share. Don’t let bad credit get in the way of buying or refinancing a home. Call today and see what we can do for you – lower interest rates are a call away.

Getting Financed with Bad Credit

bad credit mortgageIf you’re having trouble getting financed, it’s time to start thinking about bad credit mortgages! There are so many lenders out there that are eager to work with you, even if your credit is a bit iffy. Here we’re going to go over a few things you’re going to have to ask yourself and what you can do to fix your bad credit in the process. Remember: just because you have bad credit doesn’t mean you have to get a bad interest rate! Let us help you get the most out of your next mortgage.

Why is Your Credit Bad?

The first thing you need to ask yourself is WHY are you in this situation? Did you have a misstep, is there a pattern of behaviour that you need to fix? We’re not here to preach at you, but getting another mortgage or line of credit isn’t the solution when you’re not sure what the problem is. While everyone makes mistakes every once in a while, you’re going to need to know what the problem is – you can’t fix it if you just don’t know!

Start Fixing Your Credit

Once you figure out what your problem is (unpaid debts, slow pays, no credit) it’s time to get to work. If you have a home right now we can help you refinance your home for debt consolidation. If you’re just starting out and need some help establishing your credit, we can help you there. You’re always going to want a Canada mortgage broker like us to help you get the best deal possible. Opening up some accounts, taking out a car loan and having a debt you’re paying or have paid off is so important for establishing your credit. Once you pay off your accounts LEAVE them OPEN. Don’t close them! 

Work With Us

Working with us is going to help you get the most for your money. Bad credit mortgages might seem like a pain, but they don’t have to be when you work with us. We’ll help you get the best deal down to a fraction of a percentage point and we’ll get you the lowest monthly payment possible. Why should you have to pay more than you have to when we can help you get where you need to be? But bad credit mortgages aren’t for everyone and you’ll want to make sure that this is the right choice for you before you sign on.

Is it Right for You?

How bad does your credit have to be for a bad credit mortgage? Anywhere from 600 and below is considered the red zone, but some lenders will work with you at 550+. They’ll also take into consideration how much money you have liquid, how much you owe, how much income you have and a whole list of over things to decide your “creditworthiness”. You’re going to have so many things that you’re going to come up against. Let us help you get the right mortgage, good credit or bad.