Credit issues are a fact of life for many Canadians and we are here to help as your mortgage broker in Toronto. Maybe you lost your job or are suffering through an illness. If you’re like a lot of Canadians these days the global pandemic has taken a dent out of your financial outlook.
If you fit into these categories, don’t despair if you’re looking for a mortgage with bad credit. There are options for you to look at. Here’s a few tips on how to get a loan during tough times.
Work On That Credit Score
Here’s the bottom line on your credit score and the ability you have to get a mortgage. The higher the score, the lower the mortgage rates and the lower the payments you’ll need to make. If you’ve got bad credit, you might want to take some time repairing these numbers.
Staying in your credit limit on any credit cards or lines of credit helps. This tells any banking or financial institutions that you are not too badly overextended.
Mortgage Broker in Toronto Tips on Down Payments
Sending the right signals to financial institutions is a good way to get a mortgage when you’ve got bad credit. Consider a bigger down payment than normal if you’re in this position. The minimum down payment is generally 5% on a home that’s worth $500,000 or less. Keep in mind that if you’re trying to get a mortgage with a down payment of less than 20%, you’ll also need mortgage insurance.
Remember there’s some simple math involved with a larger down payment. The more you can put down at the beginning, the less you’ll need to pay off. That means you can save literally thousands of dollars in interest over the course of a mortgage. Finally, remember we’re always here to answer your questions and lend a hand.
