Financing for Bruised Credit 

  • Insured mortgages typically necessitate a credit score of 600 or higher, a criterion commonly upheld by banks as well.
  • Individuals with poor credit may explore mortgage options with B lenders or private mortgage lenders.
  • Numerous private mortgage lenders impose no minimum credit score requirement, making them suitable for those with poor credit.
  • Bad credit mortgages are intended as a temporary solution while borrowers work on improving their credit.
  • These mortgages often entail higher interest rates and potentially increased fees.
  • Some banks extend special mortgages to newcomers lacking a Canadian credit history.

Having a subpar credit score can hinder mortgage eligibility, especially with lenders imposing minimum credit score thresholds. Generally, a credit score below 600 is considered unfavorable. Lenders willing to accommodate borrowers with poor credit typically require higher mortgage rates, making it a costly status. As bad credit mortgages are typically short-term measures, their usual term length ranges from 6 months to 2 years, during which borrowers are expected to enhance their credit. Alternatively, individuals with strong familial or friendship ties may consider asking a creditworthy relation to cosign with a traditional lender offering lower rates.

How to Secure a Mortgage with Poor Credit

  • Assess your credit score to gauge potential lender perceptions, especially if it falls below 680.
  • Scrutinize your credit report for errors or lingering payments affecting your score.
  • Evaluate whether your credit suffices for an affordable mortgage, considering that alternative lenders may charge higher interest rates.

Seek a mortgage broker experienced in alternative lending:

Collaborate with a broker with expertise in alternative lending to enhance your chances of securing a favorable rate.
Brokers can advocate for your creditworthiness, emphasizing positive trends and current financial standing, even if historical events impacted your credit.

Obtain pre-approval for a mortgage:

Regardless of your credit score, securing a mortgage pre-approval is essential before venturing into the housing market.
Pre-approval offers a realistic estimate of potential lending, crucial for making informed property decisions.

Compare mortgage offers:

Don’t settle for the first offer; explore multiple options.
If working with a broker, they may negotiate for a better deal.
Independently comparing offers is essential, considering rates, fees, terms, and total costs for an informed decision.

calculate your mortgage

Helping you go from getting started to getting the keys!


The most trusted mortgage company in Ontario.