Bad Credit? Mortgage Brokers Can Help

When it comes to credit, everyone’s had problems – the trick is figuring out how to get it solved before it gets you in a jam. Working with a Canada mortgage broker can help you understand lending criteria before it becomes an issue, as well as where you are in your finances. A bank or other traditional lender isn’t going to be able to offer this level of support – and why would they? They’re looking after their best interests and you’re going to have to look after yours. Here we’re going to go over everything you need to know about bad credit mortgages and how you can save big.

What is Bad Credit?

Everyone wants to know what bad credit is and how to get rid of it, but really it’s different for everyone, and it’s different depending on what you’re applying for. When it comes to mortgages bad credit can be anything below 600 or 650 depending on what lenders you’re dealing with. You’re going to have to work with a Canada mortgage broker that understands the different criteria that each lender has to make sure that you don’t end up stuck with a bunch of rejections that you have to pay for.

Why Are Bad Credit Mortgages so Hard to Find?

Because many lenders don’t want to take the risk, and understandably so. It’s expensive to originate a mortgage, and while if you fail they’re going to take the house and that sucks for you… but what are they going to do with a house in a down market? They’re not going to be able to sell it for a while, and they’re going to have to pay taxes on it and maintenance and all of that. They have to know that you’re going to pay up on your bad credit mortgage before they try and give you money.

Working with a Broker Always Helps

Working with a Canada mortgage broker is going to help you understand what your options are. You have to know that you have good enough credit to apply, and a broker can help you explore what you can do to bring up your credit score and what you can do to establish better credit. The last thing you want to do is end up spending all that money applying for mortgages that you aren’t eligible for.

Don’t try and do this on your own, make sure that you talk to different professionals in your area and see what the best options for a bad credit mortgage are for you.

Can You Qualify for a Conventional Mortgage?

You may be able to qualify for a conventional mortgage and you don’t even know it! It’s time to find out what’s right for you, make sure you look around and see if your credit is really as bad off as you think it is. Anything about 600 is just fine for some lenders, while anything below 650 could be frowned on. Talk to a mortgage broker and see what your options are.

Erin Thompson is a mortgage broker and financial blogger for Homebase Mortgages. HBM is a Toronto mortgage broker that provides home mortgages, mortgages for the self-employed, home equity loans and lines of credit, debt consolidation, private mortgage lending and second mortgages. For more information on home equity loans visit: http://www.homebasemortgages.ca/home-equity-loans/