Bad Credit Mortgage Lender.
Bad Credit Mortgage Lender
Often times we are approached by clients who have been turned down for a mortgage due to less than perfect credit. As an introduction, we should clarify that federally regulated mortgage lenders are under extreme scrutiny. In 2012, The Office of the Superintendent of Finance Institutions (OFSI) introduced its Residential Mortgage Underwriting Practices and Procedures Guideline (Guideline B-20) to set out expectations for strong residential mortgage underwriting by federally regulated lenders.
Main Credit Scores Factors
- Payment History: Have you made all of your payments on time and as agreed?
- Balance-to-Limit Ratio: Are you using credit responsibly, or depending on credit?
- Credit History: Have you established credit in Canada?
- Insolvencies: Do you have a previous or active consumer proposal or bankruptcy?
- Inquiries: How many times have you applied for credit cards, loans, or mortgages?
How Credit Scores are Calculated
- Payment History: ~35%
- Balance-to-Limit Ratio: ~30%
- Credit History: ~15%
- Insolvencies: ~10%
- Inquiries: ~10%
- Poor: 330 – 559
- Fair: 560 – 659
- Good: 660 – 724
- Very Good: 725 – 759
- Excellent: 760 +
Reasons Your Mortgage Application Might Be Declined
- No established credit in Canada
- Late payments
- Multiple and seemingly needy credit inquiries
- Previous or active consumer proposal or bankruptcy
- Insufficient credit re-establishment post consumer proposal or bankruptcy discharge
- High credit utilization (balance-to-limit) ratio.
- Low credit score.
- Paid or outstanding collections or judgements.
- Apply a common sense approach
- Approve you regardless of your credit score
- Help you purchase or refinance with an existing insolvency provided consent from the trustee
- Provide you funds to discharge a consumer proposal or bankruptcy
- Work with you despite late payments or collection items.
- Provide you with a short term bandaid solution.
- Treat you with respect and not judge you based on your prior and current circumstances
- Ultimately target their underwriting more-so on the strength of the real estate asset and the equity.
- Equifax: Click here to order your free credit report.
- TransUnion: Click here to order your free credit report.
- DV Capital Corporation: Click here to apply online, anytime, anywhere.
DV Capital Corporation excels in the alternative mortgage market and has a successful track record of providing mortgage approvals to clients regardless of their credit score or being turned down elsewhere.
Contact us for a no-obligation quote in order for you to evaluate your options – you have our time and support.