It may surprise you to know that even Canadians who have bad credit may qualify for a mortgage. Mortgage Emporium works to help all types of people, even those with bad credit, overcome their financial obstacles to get the mortgage financing they need.
For instance, if you have had reliable employment and/or income and have had some slow payments, Mortgage Emporium can help secure first mortgage for you. Even Canadians who have extremely bad credit including bankruptcies, those that are self-employed or a recent immigrants can be qualified to get a first or, in some cases, a second mortgage. Situations are unique and at Mortgage Emporium we will take the time to evaluate all of your circumstances to ensure that you get financing and at best mortgage rates and terms available.
In Canada, a down payment is a very critical factor in securing a mortgage loan. The down payment is what the lenders will receive if the mortgage goes into collections. Most lenders will require a minimum of 15% down from potential homeowner especially one with bad credit. How much a lender will ultimately require; however, does take into account other factors such as income and the severity of the bad credit.
Proving income can be tricky, especially for those who are self-employed, but income requirements become more flexible if the down payment as the percentage of the down payment increases. One thing holds true and that is that the longer period a prospective homebuyer can prove a steady flow of income, the easier it will be to secure financing.
In Canada, the property itself is a key factor in securing a bad credit mortgage loan. The home must be in good shape and be considered “marketable”. Should the borrower default, the lender wants to be sure that they can recoup their losses through the sale of the home. This works to the advantage of Canadians living in urban areas where the demand for homes is higher.
The credit requirements for a bad credit mortgage vary. Some Canadian lenders require that all bad debts are paid off prior to lending the money. Other lenders will not be concerned with the prior bad debt as long as the down payment is at 20%. Mortgage Emporium will work with you to get the financing that best suits your unique situation.
For those Canadians who have a bankruptcy in their past, a mortgage loan may still be available. Some of the requirements include: the bankruptcy has been discharged for longer than 2 years, a down payment is available and credit has been reestablished following the bankruptcy; however, even those who have not reached the two year benchmark may qualify for a loan if they have a larger down payment.