A bad credit mortgage is a term that is used when someone who has poor credit, bad credit, horrible credit, or no credit applies for a mortgage loan.
In this day and age, mortgages are hard to come across if you have less than excellent credit and high income. This is where bad credit mortgage loans come in.
Bad credit mortgages are mostly available through alternative lenders and through channels that are not as well known for mortgages. Since banks and many other larger institutional mortgage lenders will only approve the lending of mortgages to individuals who have good credit, great credit, or excellent credit. It is important to understand that even if your credit is not too bad, you could still get turned away by the banks when applying for a mortgage and other mortgage related loans.
If you are consistently late on mortgage payments, if your taxes are in arrears, have an outstanding first mortgage or second mortgages, have missed payments on your mortgage or credit cards, department store cards or other debts, high revolving balances on a credit card and store cards, or if you have had a bankruptcy or consumer proposal in the last 7 years, this along with other factors can most definitely contribute to a very bad or low credit score. Based on a person’s credit mortgages will vary in rate and terms.
Many of the lenders who we work with specialize in quickly approving mortgage loans for Canadians with bad credit, low income, or self declared income. We spend the time looking for the right mortgage loans solution for your needs at the current lowest rates and best terms that are available to you.
