Bad Credit Mortgage

Bad Credit

A Basic Understanding of Bad Credit Loans or Mortgages

It is a type of scheme where you clear your existing mortgage and replace it with a new one. The scheme may offer a higher mortgage balance to ensure that you can borrow more money and may have a different mortgage interest rate as well. The CMHC or the Canadian Mortgage and Housing Company describes mortgage refinancing as a type of policy that allows a homeowner to pay their existing mortgage in full by securing another loan. The loan will have new terms and clauses and property equity can be used as collateral Lenders allow homeowners to pay for the refinanced mortgage for a long period, and their interest rates are generally lower compared to the rates of other types of personal loans.

Bad credit mortgage

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Bad credit mortgages for customers across Canada

Having a bad or a low credit score should not be an obstacle for you to apply for a loan. If you have the resources to pay the amount back, you should have access to it. However, most traditional money lending institutions like the bank or credit unions take your credit score as a major factor in whether you should be eligible for a loan or not. If you get in touch with Harpreet Puri, you will not have to face that problem at all. To arrange an appointment, contact our team, we look forward to hearing from you.

How It Works

Why should I choose a bad credit mortgage?

That’s an excellent question and below are some of the reasons why should consider applying for a bad credit mortgage. Have a look below:

Quick and easy approvals:

If you go to the bank for a mortgage with a bad credit score for a loan, there are high chances of getting rejected. However, if you visit Harpreet Puri Mortgage, we will hear your situation and your requirements first and based on that we will share some plans with you. On confirmation, we can get the approval quickly as bad credit mortgages do now require a lot of documentation. Your loan can be approved as quickly as in less than 48 hours.

No minimum credit check:

With bad credit mortgages, you won’t need to worry about how low your credit score is. Our lenders check on other factors when it comes to offering loans, hence there are no minimum credit checks required.

Option to improve your credit score:

if your income is low or you have a poor credit score or you are self-employed and declare your income in a non-conventional way then you might not be eligible for those super low-interest rates on loans. However, getting bad credit mortgages from Harpreet Puri and making monthly payments on time can help you repair and improve the scores of borrowers over time. Another way to help improve your score is limiting your unnecessary purchases to only the money you have on your bank cards rather than buying things on credit. As you will be paying back your credit bills, your score will also improve.

If you want more reasons, feel free to get in touch with our team.

The bottom line

With a bad credit score, it’s important for you to consider why that is, and also take the necessary steps to change the habits that resulted in a low credit score. Changing your habits will simultaneously improve your finances and give you access to lower interest rates for your mortgage. If you’re thinking of buying a house with bad credit you can contact Harpreet Puri and our team will be more than happy to help you. Contact us today!

Schedule an appointment with Harpreet Puri for bad credit mortgages and more!

Can I get an affordable interest rate on my bad credit mortgage?

That might be a bit difficult as your credit score would be on the lower side. However, there are ways to get a low-interest rate as well. For instance, if you’re making a higher down payment, then there will be low-interest rate options available for you. (a larger down payment means, more than the asked 20% on general mortgages for a property.)

Also, if you can find a co-signor or a guarantor, that would be great. A co-signer signs all the mortgage documents and their name appears on the title with the purchaser which would be you. They co-own the home with the person living in it and as per the paperwork, they are liable for the mortgage payments. In other words, if the person living in the home can’t make payments, the co-signer will be held responsible for them.

As the name implies, a  guarantor ensures that the mortgage payments will be made and in doing so becomes responsible for the payments the mortgage is unpaid. However, they will not own the property and their name doesn’t appear on the title.

The advantages that come with a bad credit mortgage

  • Your loan will be approved quickly, you will get access to the funds as soon as possible
  • Other than purchasing a property, bad credit mortgage loans can be used to clear off debts and dues as well.
  • Bad credit mortgage loans can help you repair your credit history. As you pay back your due, your credit score will improve.
  • You will have the option to consolidate your outstanding debts and pay them off at a low-interest rate. This way, you will be saving some cash as well.