Toronto bad credit mortgage options can range programs offered by “B” institutional lenders to private mortgage lenders.
The key in most cases is going to be how bad you credit is as almost all mortgage programs will have some parameters in their mortgage assessment criteria with respect to credit score and credit profile information.
The starting point for bad credit mortgages is typically when your personal credit score falls below 650. This is the fico score that is provided by the major credit reporting agencies that provides credit reporting services on and for Canadian residents.
Once you get below the 650 score level, you will likely be eliminated from most “A” mortgage programs. The next level down of institutional mortgage financing can still provide very good rates, but they will be slightly higher if your credit profile was stronger. While the score is something that everyone tends to get fixated on, the rest of your credit profile and transactional history are also going to be important and taken into consideration when a mortgage lender is assessing your application. For example, you could still be declined by an “A” lender when you have a credit score above 650 if you have negatives on your credit history that may concern them.
As your credit score drops, you are continuously limited from the available institutional mortgage programs. There is no exact jumping off point from where institutional programs stop and and private mortgage financing starts, but a generate rule would be at the level where your personal credit score goes below 600.
While private lenders will consider bad credit profiles where the credit score is low and the are a number of recent negatives on the credit profile, privates may also review your profile to get a better sense of your commitment to honor your repayment obligations. As a result, there are also differences in rate availability on the private mortgage side of things as well where very bad credit may pay a higher private mortgage rate than a less severe credit profile.
If you have bad credit and want to better understand your Toronto bad credit mortgage options, I suggest that you give me a call at 416 464 4113 so I can quickly assess your situation and provide you with bad credit mortgage options for your consideration.
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