Before a mortgage lender agrees to forward any funds to a potential borrower, they will want to look at the credit history of the borrower, to assure that the lent money is safe and will be repaid on time, as agreed upon.
The term “bad credit” gets tagged on to an individual when that individual fails to meet his or her payment obligations (i.e. defaults) on the loan from a lender. This tag stays with the individual’s credit history for 7 to 10 years depending on the type of default.
A person’s credit score is computed by a company called Fair Isaac Company – FICO, the most trusted, and used score. The credit score ranges from 300 to 850, with the higher end of the scale indicating you are a good credit risk. This credit score is affected by your payment history for the various loans and debts that you take on. Since most banks shy away from credit scores 650 or lower, we at Canadalend.com will work with all credit scores.
The lower a person’s credit score is, the higher a risk that person is considered by a private money lender and therefore the higher the cost of borrowing is likely to be. There are many more private mortgage lenders available today who are willing to finance higher risk and high ratio mortgages that the banks won’t touch.
At Canadalend.com we have access to a large pool of such mortgage providers or private lenders who provide a variety of mortgage products catering for clients living in and across Ontario with past bad credit issues and even bankruptcy.
If you fall into one of these groups:
A Canadalend.com mortgage and credit specialist can review your situation with you to see how much credit you can qualify for based on your history and the amount of equity you have in your home. If you are interested in finding out what your mortgage options are, simply call Canadalend.com or click on Apply Now! to get in touch with a Canadalend.com bad credit mortgage specialist.
We will work with you to create a solution that benefits you and optimizes the use of your equity.