First of all, what is bad credit? There are varying degrees of bad or poor credit, each with different financing applications.
Bad credit in general refers to a low credit score and a poor credit repayment record. But each person’s credit profile will tell a different story which can result in different potential mortgage options.
For many institutional lenders, if you don’t have a credit score of 650 or higher, you will not be eligible for their best rates and in some cases they won’t consider you at all.
With credit scores below 650, there are still bank or institutional mortgage sources that can provide reasonable rates, depending on the reason for the poor credit. For instance, it you were away for an extended period of time and accidentally neglected to pay an outstanding credit card balance for a few months, your credit score is going to get hammered, but the severity of the credit issue is very low which will be taken into consideration by certain lenders.
If you credit is below 500 and you have a history of continually missing payments on a number of loans and credit cards, then any type of mortgage financing is going to be difficult to secure because no one wants to constantly be chasing a borrower for late payments.
You can also have a credit score below 500 for events that have happened in the past, but you can also show one or two years of constantly improving credit by you incorporating better credit management practices.
The point here is that bad credit mortgages in Toronto are going to need to be considered on a cash by cash basis, with different options potentially available for different credit profiles.
The best way to determine what bad credit mortgage options are available to you is to work with an experienced mortgage broker that has a focus on bad credit mortgage financing applications.
The mortgage broker will be able to review your credit with you and quickly assess the mortgage lenders that are going to actually be able to help you or will be interested in your deal.
This is going to avoid wasting time with mortgage providers that are likely not going to be able to provide a Toronto bad credit mortgage.
If you require a Toronto bad credit mortgage, give me a call so I can assess your situation and discuss relevant options with you.
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel