Bad Credit Mortgage in Ottawa
Bad credit doesn’t have to mean a bad deal. At Borrowing Made Simple, we specialize in finding great mortgages for people with poor credit scores. We connect our clients with a variety of lenders, helping them shop the most competitive deals on the market.
Call us at (343) 763-2019 to schedule a consultation today.
Can I Get a Mortgage with Bad Credit?
It’s a common misconception that having bad credit will stop you from getting a mortgage. In fact, there are plenty of mortgage plans that are designed specifically for borrowers with poor credit.
You’ll most likely be able to find a mortgage, even if you have bad credit. However, where you may run into trouble is your number of options. Generally speaking, there will be fewer lenders who will be willing to give you a loan. Nevertheless, you should be able to find something, if not from a national bank, then from a secondary lender or a private lender that specializes in mortgages for people with bad credit.
How Do I Buy a House with Bad Credit?
In most cases, buying a house with bad credit follows the same overall steps as buying a house with good credit. If you need to take out a mortgage, you’ll need to find a lender to supply it.
Bad credit may make it harder for you to find a lender. Prime lenders, such as national banks, tend to be the most risk-averse, and therefore the least likely to agree to a mortgage with someone who has a low credit score.
If you can’t obtain a mortgage with the bank, you may want to look at a secondary lending institution or even a private lender.
To secure a loan with a bad credit mortgage lender, you will typically need:
- Proof of income/employment
- Proof of down payment
- Appraisal of property to be purchased
- Co-signer (if necessary)
In some cases, the lender will also require you to have a co-signer who guarantees that the loan will be paid. Having a co-signer can also improve your chances of obtaining more favourable conditions for your mortgage.
Will Bad Credit Affect My Mortgage?
Unfortunately, having bad credit will affect your mortgage. Financial institutions consider lending to people with poor credit as a riskier venture. As such, they try to offset that risk by seeking better loan conditions for themselves. With poor credit, you should expect your mortgage to cost you a fair share more than it would if you had an above-average credit score.
In general, a poor credit mortgage will feature:
- A higher mortgage rate
- A larger down payment
- No pre-approval process
Some lenders may also charge an application fee.
A broker from Borrowing Made Simple can help you avoid the worst of these effects. We connect you with a wide range of lenders, making sure we find you the best deal available. With us, you can expect a fair mortgage, a low rate, and exceptional long-term money savings. Take advantage and get in touch with us today.
Ottawa’s Best Bad Credit Mortgage Broker
Get in Touch Today
We’ll be happy to answer any questions you may have about our services, how we can save you money, and what we can do to help you obtain a fair mortgage plan. Book a consultation, and we’ll be sure to show you your best course of action.
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