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!