Monday, May 9, 2022

No products in the cart.

  • About
    • Contributors
    • Disclaimers
    • Terms & Conditions
    • Giving back
    • Mission Statement
    • Past Issues
    • Where to Find
    • Call us at 613-935-3763
  • Advertise with us!
COVID-19 Response Framework: STEP THREE OF REOPENING

Get the Seeker Delivered straight to your door, click here
  • Home
  • News
  • Leisure & Lifestyle
  • Columns
  • LTE
  • Events
  • Contributors
No Result
View All Result
No Result
View All Result
The Seeker Newsmagazine Cornwall

5 Ways to Get a Mortgage With Bad Credit

Editorial Board by Editorial Board
April 23, 2021
in News and Announcements
Reading Time: 4 mins read
31 1
white and brown wooden house near bare trees under white sky

Photo by Curtis Adams on Pexels.com

19
SHARES
211
VIEWS

Living with a low credit score can make life more difficult. Borrowing money can seem next to impossible, making large goals like buying a home in Toronto, Ottawa, Vancouver, or Halifax seem just out of reach. Many things in life, including renting an apartment, leasing a car, or getting a new job all hinge on the seemingly small number that makes up your credit score.

The reality is that lenders and employers are interested in minimizing their risk. They use information like your credit score to make important decisions about lending money or giving employment. A credit score that is considered low is generally under 650. If your score is lower than 650, you will face difficulties trying to get a mortgage, but it’s not impossible.

You might also like

Township of South Stormont Seeking Nominations for Youth Volunteer Award

CCH Celebrates National Nursing Week

Hospitality Connex Online Workshops Launch in South Eastern Ontario

Mortgage lenders rely on credit scores to help them decide, but it is not the only factor that they review. If you work with the right team and research bad credit loans in Toronto, you have a better chance of qualifying for a mortgage. Let’s look at a few ways to get a mortgage when you have poor credit.

Larger Down Payment

Most financial experts will recommend that you put a minimum of 20% down on your mortgage payment to qualify for the best interest rates. It is possible to get a mortgage for a smaller down payment which will increase your monthly payments. However, if you have a lower credit score, you may not have the option for a less than 20% down payment. Many lenders will look more favorably towards borrowers that can put a higher down a higher deposit. Having the ability to put down a 30% to 40% deposit may help offset your low credit score and help you qualify for a mortgage.

Down Payment Assistance

If you have poor credit and are unable to save a minimum of 20% for your down payment you may qualify for down payment assistance (DPA). You will need to apply for one of the following DPA’s:

  • Forgivable no-interest loans
  • Grants
  • A deferred payment no-interest loan
  • A low-interest loan with an extended repayment period

Do your research about all of these loan options and download the applications for down payment assistance online. Keep in mind that this type of assistance will require you to take on additional debt and repayment terms in the future. You will need to work your down payment loan payments into your budget.

Credit Boost

Your credit report doesn’t necessarily tell the whole story about your borrowing and financial history. Most standard credit reports only display items that negatively impact whether you are a reliable lending risk. If you are struggling with bad credit from past mistakes, there are other ways that you can help to give your credit a boost.

Everyday bills like your phone and cable billing are items not included in your credit report but your good standing on these accounts could change the picture of your credit. You can sign up for programs that will help to have these types of smaller accounts included in your credit history and boost your overall score. Companies like Experian Boost and UltraFICO can help you to rewrite your credit report to your advantage.

Private Lender

Traditional lenders can be stringent in their decision-making process to loan money. They calculate any risk to their investment and make it difficult for anyone that doesn’t have a high credit score to secure a mortgage loan. If you have poor credit, your best option may be to apply for a mortgage with a private lender. Private investors are less focused on your credit score and more on the value of the property and your other factors or risk. High-risk lenders will work with you to get a mortgage, although you may not have the same flexibility in contract length along with higher interest rates.

Co-Signer

If you can’t qualify for a mortgage on your own, you can consider using a co-signer. A co-signatory is someone that you know that can add their good credit score and reputation to your application to help you qualify for a mortgage. The risk is that the co-signer becomes equally responsible for the payment terms on your mortgage. If you fail to make payments, the co-signer could end up being liable for your debt. This is a tough decision that should be made very carefully, especially when asking a family member or a friend to put their name on your application.

Although it is possible to get a mortgage when you have poor credit, there are disadvantages, including a less flexible repayment contract and higher interest payments that can increase your overall investment significantly. The best path is to try to raise your credit score before you apply for a mortgage. However, if you need to purchase a home quickly, you can follow these tips to help you qualify for a mortgage with poor credit.

Author

  • Editorial Board

    View all posts

Next Post

Employment Planning for the New Normal

Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
guest
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
guest
0 Comments
Inline Feedbacks
View all comments

Place YOUR ad here now
Facebook Twitter Instagram Youtube TikTok

Don't miss anything!

Get notified of all our new news by ringing the bell at the bottom right corner!

The Seeker Newspaper is located at 327 Second Street E., Cornwall, ON K6H 1Y8 -- All rights reserved
The Seeker does not accept responsibility for errors, misprints or inaccuracies published within. The opinions and statements of our columnists are not to be presumed as the statements and opinions of The Seeker, and should not substitute professional or medical advice.
ISSN 2562-1750 (Print)

ISSN 2562-1769 (Online)
No Result
View All Result
  • Home
  • News
  • Leisure & Lifestyle
  • Columns
  • LTE
  • Events
  • Contributors

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
wpDiscuz
0
0
Would love your thoughts, please comment.x
()
x
| Reply
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
X
X