Bad Credit Mortgage Solutions in Ontario
- We focus on credit improvement, to lower your bad credit mortgage rate
- We often improve credit and lower the rate, within 1 month
- All bad credit mortgage lenders are shopped, no matter your situation, to provide the best mortgage rate from any Broker
Brent Richardson, Certified Financial Planner (CFP) and Mortgage Broker specializes in bad credit mortgage solutions in Ontario and credit repair, so you can move forward today, and improve for years to come.
Your Lowest Rate Bad Credit Mortgage Solution
If your credit has headed south and you’re shopping for the lowest bad credit mortgage rate solution in Ontario, I can help.
My focus is on helping you repair your credit and get ahead – sometimes in less than one month. We always attempt to improve credit quickly and approach some of the more flexible ‘A’ lenders or Prime Lending Rate lenders first.
Otherwise, the bad credit mortgage can be a stepping stone to help in this process of credit repair. Several types of lenders and rates apply to bad credit mortgages in Ontario. We search each of the 3 credit impaired lender types, as seen below, to ensure your best deal.
Bad Credit Mortgage Lender Rate Review for February 2025
Credit Unions in Ontario
| Lender | Mortgage Rate Example |
|---|---|
| First Ontario | 4.59% |
| DUCA | 4.89% |
| IC Savings | 5.34% |
| Meridian | 4.99% |
| YNCU | 4.79% |
| Desjardins | 4.79% |
B Lender Mortgage
| Lender | 1 YR Fixed |
|---|---|
| Excalibur | 4.69% |
| Wealth One | 5.09% |
| Eclipse | 5.19% |
| MCAN Discover | 5.19% |
| Community Trust | 4.99% |
| Optimum | 5.49% |
Private Mortgage Lenders
| Lender | 1 YR Fixed |
|---|---|
| Altrua Financial | 5.99% |
| Magenta | 6.84% |
| River Rock | 7.99% |
| Westborough | 8.99% |
| MCF Mortgage Corp | 7.99% |
| Fisgard | 8.99% |
Credit Impaired Mortgages Before and After Working Together
The mortgages for bad credit situations are designed to be a ‘stepping stone’ for a shorter period of time, such as 1 to 3 years. The focus is helping the borrower to graduate to better rates on each renewal. Given this, one of the main focuses for a bad credit mortgage is how to pay off the mortgage.
Before:
- Missed Credit/ Lender Payments
- Credit Balance Over the Limit
- Consumer Proposal or Bankruptcy
- Mortgage Arrears
- CRA Income Tax Arrears
After:
- Debts settle
- One easy payment
- Credit score growth
- Thousands in interest saved
- A plan to lower your mortgage interest rate
Example of a 1 year mortgage term comparison of 3 lenders, with a lower credit score of 600
Lender 1 (Big Bank): 4.39% (declined the approval)
Lender 2 (Major B type lender) 5.99% + 2.5% fees (APPROVED)
Lender 3 (Credit Union) 4.99% with no lender fee (APPROVED)
By selecting Lender 3, the borrower saved $3,500 in 1 year on just $100,000 of mortgage, and is set up to lower their rate even further with Altrua Financials’ credit score booster service.
Bad Credit Mortgage Options Ontario – Get YOUR Best Option!
There are over 100 bad credit mortgage Ontario lender options available, but for one reason or another, usually, only a fraction of these options are made available to borrowers. It’s important we search all lenders to help ensure your best rate, including:
- Flexible ‘A’ Rate/ Prime Mortgage Lenders
- B mortgage lenders
- Credit unions
- Private lenders
Switch from Poor Credit to Good Credit Low Rate Mortgage
One of the most important goals with a bad credit mortgage is switching out of it into a lower mortgage rate at the end of the term. There are a few lenders we work with that make the transition easier at the end of the term, so that you can go from the ‘B lender’ side to ‘A lender side’ on the renewal after 1 year, without even switching lenders. All we need to do in these cases is demonstrate improved credit and the renewal happens easily from higher to lower rate. Connect with us for more information.
Better Rates for All Mortgage Types
Just because your credit is lower doesn’t mean you should be getting a bad deal. Far too often, borrowers with lower credit scores accept bad credit mortgage approvals with rates, fees and terms that are not as good as they could be.
The solution is working with a mortgage broker who searches for more options, cuts the lender fees, and works to set you up for a better mortgage at each renewal. We strive to be that Broker of choice at Altrua Financial and work to gain each client’s trust by showing them the difference.
Cutting Mortgage Lender Fees
Depending on the application, lender and broker fees can be cut substantially if not cleared completely.
In almost every case at Altrua Financial, when we compare an existing bad credit mortgage approval to ours, we find ways to reduce the fees involved, saving borrowers thousands of dollars. In the rare case we can’t reduce or clear the fees, we happily confirm that the borrower is already set up with the best mortgage.
Guaranteed Approval for Bad Credit Mortgages?
While nothing in life is guaranteed, some lenders we work with have very relaxed guidelines. As long as there is at least 20% equity in the home, we can usually obtain approval, regardless of credit score. The more equity in the home, the lower the rate. For example, if there is 50%+ equity in the home, we can obtain some of the lowest bad credit mortgage rates for a home purchase or mortgage refinance.
Improving Your Credit for Lower Mortgage Rates
Improving your credit score to get a lower mortgage rate is both a short term and long term game plan. In the short term of just 2 or 3 months, it’s amazing how a few minor, relatively simple changes can make a huge positive impact on the credit score. Over 2 or 3 years is when we can make the most noticeable gains for lowering the mortgage rate.
The goal is to spend even just a few minutes working together to help bolster your score as fast and as easily as possible and to watch your rate drop in the process.
What is the lowest credit score to get a mortgage?
The lowest credit score to get a mortgage is technically 300, because this is the lowest possible credit score. Even with the lowest possible credit score, several bad credit mortgage lenders will consider approving. Mortgage rates tend to be higher with lower credit scores. However, there are still ways to lower the rate with any credit score, as will be discussed below.