While you might be in a tough spot, with financial woes and credit agencies at your heels, there is light at the end of the tunnel. And it might just come in the form of a Bad Credit Mortgage. Bad Credit Mortgages are only available in Alberta & B.C. and clients must have a minimum 25% down or 25% equity in their home.
Let’s face it, what person would like to hear they have bad credit? There are many people who are disappointed to be informed they have bad credit. Bad credit can be a result of many things; too many late payments, inability to make payments for different reasons, you might have "bad credit" because you just haven't had any credit in the past, or maybe even reasons beyond the person’s control. However once a person has a bad credit score, it can be difficult to get any sort of help from a bank or financial institution.
Although people have bad credit, they still require money to live. They still require a roof over their heads and likely will need a mortgage. How difficult is it to get bad credit mortgages in Canada? At one time it was impossible to get a mortgage in Canada if your credit score was below a certain percentage. Once in the bad credit category, forget it, the banks would not take a second look. However with the real estate market in Canada recovering, a bad credit mortgage seems somewhat easier to obtain. Lenders are also taking into account the reasons for this bad credit rating.
Don't let your financial troubles prevent you from purchasing the mortgage you require. MyMortgage.ca Inc will find you the best deal on your mortgage loan in spite of any bad credits.
Bad credit mortgages in Canada can be obtained. The financial
institution will need to be certain that the monthly payments can be made. An individual’s debt-to-income ratio has to fall within a certain category. The lender must be sure that the property being purchased is affordable. The lender uses a point system to help in determining eligibility for bad credit mortgages in Canada.
Most lenders offering bad credit mortgage loans in Canada will charge you higher interest rates compared to those with good credit, also, your upfront costs may be comparatively higher. This may be a great incentive to make payments and aim to get the mortgage paid off. It is important for both the borrower and the lender of a bad credit mortgage in Canada to make sure the borrower will be able to make the monthly payments. If not, the individual may fall right back into the bad credit category again. Bad credit mortgages in Canada are available; however the process may be much more time-consuming than applying for a regular mortgage in Canada. There are many factors to take into account and many details to be worked out between the financial institution and the borrower before a bad credit mortgage in Canada is approved.
Bad Credit Mortgage Debt Consolidation
If you are troubled by continuous harassing phone calls from creditors then consider obtaining a bad credit mortgage through MyMortgage.ca in order to consolidate all your external bills in to one low monthly payment. Bad credit loans not only assist in avoiding bankruptcy but also help you improve your credit status and your credit report.
Benefits of obtaining a new Bad Credit Mortgage:
Purchasing a new home
Carry out home improvements
Settle high interest debts
Personal purposes such as Divorce settlements, child support, plan for a vacation, purchasing a new car, saving for retirement, etc.