Bad Credit Mortgages in Ottawa
If your credit isn’t perfect, you may feel quite limited when shopping for a home. You might even be wondering if you can qualify for a loan at all. Chris Allard has extensive experience working with mortgage lenders and knows how to get a mortgage for a borrower with bad credit. This guide covers what you need to know about bad credit mortgages, and how we can assist to ensure you make a well-informed decision.
What is a Bad Credit Mortgage?
A bad credit mortgage is an option for borrowers who have no credit history or who have made mistakes in the past. While you’re not going to get the very best interest rate, it’s possible to build your credit back up by making your payments each month. You may be able to refinance at a later time to reduce your interest rate.
How to Get a Mortgage with Bad Credit
If you’re trying to apply for a bad credit mortgage, there are some steps that you can take to increase your chance of approval and even lower your interest rate. Consider the following:
Check Your Credit Score
Your credit report could be inaccurate. Obtaining it allows you to dispute inaccurate marks on your history. Having them removed will increase your score and make you appear more credit-worthy.
Plan for a Larger Down Payment
If you’re able to put more money down, this increases the odds of approval. You’re not only borrowing less money, but you’re showing that you have a greater investment in your property. Lenders may see that you’re more likely to make payments if you have more to lose.
Improve Your Credit Score
When you look at your credit report, you can come up with a plan to improve your score by reducing your credit utilization, paying off collections accounts and disputing errors. Continuing to pay your monthly bills on time and reducing your credit card debt can give your score a needed boost when looking for a loan.
Work with a Mortgage Broker
Even though larger banks may not offer you a loan right now, there are plenty of alternative lenders and private lenders that may offer second-chance bad credit mortgage options. The problem is that it’s difficult to weigh every option on your own. An experienced mortgage broker already has relationships with numerous lenders and can work on your behalf to find one that will approve you.
What Can a Bad Credit Mortgage be Used for?
If you have a poor credit history, getting a loan and making your regular monthly payments can show future lenders that you’re able to meet your financial obligations. For many people, a bad credit mortgage is a way to buy a home and improve their credit score so that they can refinance in a few years. Because your credit isn’t perfect, you’re not likely to get a low-interest rate on this type of loan. You can certainly lower your interest rate later if you continue taking steps to improve your credit rating.
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Frequently Asked Questions
You won’t be able to obtain a loan from one of the large banks, but many alternative lenders offer bad credit mortgage options.
The short answer is yes. Even if you have negative marks on your credit, you may still qualify for a bad credit mortgage.
This varies by lender. The minimum score to qualify with a bank, credit union, or mortgage company is 600, but don’t worry if your score is lower than this. We can find you an alternative mortgage lender willing to make you an offer.
Chris Allard is an experienced mortgage broker specializing in finding the best loan terms for his clients. A poor credit score doesn’t need to hold you back if you’re looking for a home. Contact us today to find out whether you qualify for a bad credit mortgage, and for details on programs that may be able to help you buy a new home.
About Your Bad Credit?
If you’re worried your credit rating will impact your mortgage application, you are not alone. The number of Canadians in debt is on the rise, and even people with a high income are refinancing their home or taking out loans more frequently than in the past. Refinancing to pay out debt can, in some cases, be the quickest way to increase your credit score.
Even after declaring bankruptcy, a mortgage may still be an option. Mortgage brokers understand the human element behind your bad credit, always taking into account the full story behind your credit history, and can negotiate with private lenders on your behalf to get you the best mortgage rate possible.
More Than Just
Your Mortgage Broker
If your overall credit situation is less than stellar and you’ve already been declined for a mortgage by your bank, Chris Allard will do more than get you the best rate. His vast experience and passion for mortgages have made him a dedicated expert in the field. His desire to help others has led to him providing his experience to clients needing help getting their credit back on track. In some cases, Chris has been able to get his clients approved at the same bank that declined them the first time!
Choose Chris Allard
If you’re living in Ottawa and have bad credit, no credit,
or have had to declare bankruptcy because of:
- Job loss
- And more
Chris believes that you should still qualify for a mortgage rate that works for you. Pick up your phone and give him a call today. He is happy to provide a no-obligation consultation to discuss your options with you.