Bad Credit Mortgage Ontario
With Canada’s tough economy, and with the surprises that life throws our way, we see more and more financial difficulty and an increasing need for bad credit mortgage approvals in Ontario.
If you’re reading this, You’re Not Alone.
The problem is, all too often, those searching for bad credit mortgages Ontario get quoted higher mortgage rates and fees than they could be paying, costing $1,000’s extra. They also get bad advice about how to improve their credit situation long term.
That frustrates the heck out of us.
So we wrote this article to show you how bad credit mortgage approvals work, and to help you get approved for a credit impaired mortgage with lower rates and better terms.
Whatever your credit situation for a home purchase or mortgage refinance, we can help.
>> Example of a 1 year mortgage term comparison of 3 lenders, with a lower credit score of 605 <<
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 over $7,000 in 1 year and is set up to lower their rate even further with Altrua Financials’ credit score booster service. <<
Bad Credit Mortgage Options in 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 to search all lenders to help ensure your best rate, including:
- B mortgage lenders
- Credit unions
- Private lenders
Bad Credit Mortgage Rate Lender Review for December 2024
B Lender Mortgage
| Lender | 1 YR Fixed |
|---|---|
| Equitable | 5.19% |
| Optimum | 5.39% |
| Home Trust | 5.44% |
| Wealth One | 5.19% |
| MCAN | 5.29% |
| Community Trust | 5.24% |
Credit Unions in Ontario
| Lender | Mortgage Rate Example |
|---|---|
| First Ontario | 4.99% |
| DUCA | 5.09% |
| IC Savings | 5.34% |
| Meridian | 4.99% |
| YNCU | 4.89% |
| Desjardins | 4.89% |
Private Mortgage Lenders
| Lender | 1 YR Fixed |
|---|---|
| Newhaven Mortgage | 6.99% |
| Magenta | 7.99% |
| River Rock | 7.99% |
| Westborough | 8.99% |
| MCF Mortgage Corp | 7.99% |
| Fisgard | 8.99% |
Bad Credit Mortgages Before and After
Before:
- Missed Credit/ Lender Payments
- Credit Balance Over the Limit
- Consumer Proposal or Bankruptcy
- Mortgage Arrears
- CRA Income Tax Arrears
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.
After:
- Debts settle
- One easy payment
- Credit score growth
- Thousands in interest saved
- A plan to lower your mortgage interest rate
APPLY to help ensure the best mortgage rate, regardless of your situation!
Better Rates for Bad Credit Mortgages
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
Lender and broker fees can be cut substantially if not cleared completely, depending on the application.
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.
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.
Given this, you can get a mortgage with a credit score 550. While it is still considered a bad credit score, it’s not the lowest. It’s easier to work with a credit score 550, and many mortgage lenders are available for those with more home equity or down payment.