Bad Credit Mortgage
What is a 'Bad Credit' Mortgage?
We understand that life can present unexpected financial challenges, leading to situations where your credit history may not be perfect. But don't worry – we are here to help you find suitable solutions and secure a mortgage even with bad credit.
In Canada, bad credit is typically defined as a credit score below 650. A credit score is a number ranging from 300 to 900 that represents an individual's creditworthiness. Lenders use credit scores to determine the likelihood of a borrower defaulting on a loan. A higher credit score indicates that a borrower is more likely to make payments on time and is therefore more creditworthy. Conversely, a lower credit score indicates a higher risk of default.
If you have a bad credit score, it can be challenging to obtain financing, including a mortgage. Traditional lenders may view you as a high-risk borrower and be hesitant to approve your application. However, at Mortgage Wars, we specialize in assisting individuals and families with bad credit to obtain a mortgage.
One of the key advantages of working with Mortgage Wars is our ability to find tailored solutions that meet your specific needs. We understand that every situation is unique, and we take the time to assess your financial circumstances and credit history comprehensively. Our mortgage experts will work closely with you to explore the available options and recommend the best course of action.
Bad Credit Mortgage Solutions:
With a minimum down payment of 20%, we can help you secure a bad credit mortgage for your new home purchase. This means that even if your credit score is less than perfect, you can still fulfill your dream of becoming a homeowner. Our team will guide you through the entire process, answering your questions and providing expert advice at every step.
In addition to new home purchases, we also specialize in bad credit mortgage refinancing. If you already own a property and are looking to refinance, we can help you access the equity in your home. With a minimum of 20% equity, you can consolidate debt, undertake home renovations, or access funds for other purposes. Refinancing can provide a fresh start and help you improve your financial situation.
MAX 80% = Mortgage Amount/ Property Value
At Mortgage Wars, we understand the importance of quick and efficient service. We strive to provide a hassle-free experience for our clients, ensuring that you receive prompt responses to your inquiries and that your mortgage application is processed efficiently. Our team is dedicated to making the mortgage process as smooth as possible, alleviating any stress associated with obtaining a mortgage with bad credit.
Please remember that a bad credit mortgage is an opportunity to rebuild your credit score. By making regular mortgage payments, you can demonstrate financial responsibility and improve your creditworthiness over time. This will open up even more opportunities for favorable financing options in the future.
If you're ready to take the first step towards homeownership or explore refinancing options despite your bad credit history, contact Mortgage Wars today. Our team of experts is standing by to assist you in finding the best bad credit mortgage solution for your needs. We believe in second chances, and we are here to help you achieve your homeownership goals.
If you have any questions, we would love to hear from you. Contact us.
HELPING CANADIANS SINCE 2012
Mortgage Wars have been helping Canadians qualify for home financing since 2012. We have access to multiple alternative lenders and private lenders in Ontario. We find alternative and private mortgage solutions to the most common reasons that the bank declines you
Credit Problems
Many Canadians struggle with high debt loads and end up falling behind their monthly obligations. Some end of having their debts go to collections, others in consumer proposals and some even end up in bankruptcies. We have access to lenders that would approve ‘bad credit’ mortgages. Alternative lenders and private lenders would consider these applications given the credit issues have been resolved and the clients have a minimum 20% down payment for purchases or 20% equity for refinances.
Business Owners
We also focus on business owners who struggle to prove their incomes on paper. Most business owners especially small business owners and ‘start-ups’ do not reflect a lot of income when they file for their income taxes. Most traditional lenders review the 2-year average income filed for mortgage application purposes. Alternative lenders can consider income based on income received in the last 3-6 months. This consideration can be given to business owners looking to purchase a property with 20% down payment or refinancing their homes with a minimum 20% equity.
Real Estate Investors
Aside from assisting clients with bad credit mortgages and helping business owners find alternative mortgage solutions, we also focus on helping real estate investors. As real estate prices in the Greater Toronto Area and in Ontario continue to rise, it is becoming more difficult for investors to qualify for a higher mortgage. Traditional lenders have strict guidelines on how much mortgage they can approve based on the applicant’s gross income. This is calculated using Gross Debt Service and Total Debt Service (GDS/TDS) Ratios. Alternative lenders and private lenders have more lenient guidelines and therefore allow investors to qualify for a higher mortgage needed to continue investing in real estate.