Bad credit mortgage lenders in Canada
Bad credit mortgage lenders are lenders whose rules allow for a credit history a bank will not accept, missed payments, collections, a consumer proposal or a bankruptcy. In Canada that means alternative (B) lenders first, and private lenders and MICs where a B lender will not go.
The lenders listed here describe the files they will consider. A poor score changes which lenders will look and what the mortgage costs; it rarely closes the door completely, and it should not be permanent.
No bad credit mortgage lenders listed in Canada yet
This page fills in as professionals claim their listings. Try a nearby city, or a broader need.
Are you a lender? List here freeWhich lenders approve bad credit mortgages
B lenders are the normal home for a bruised-credit file. They look at why the damage happened, how recent it is and what has been re-established since, and they offset the risk with a higher rate, a larger down payment or equity requirement, and usually a lender fee.
Private lenders and MICs lend mainly on equity and will look at almost any credit history, at a considerably higher cost. They are the right answer only when a B lender has said no or cannot close in time.
Mortgage lenders after a consumer proposal or bankruptcy
Lenders count from the date of discharge, not the date of filing. After discharge they want to see new credit, typically a secured card and one other account, used lightly and paid on time. The more time since discharge and the larger the down payment, the more lenders will look.
Applying to several lenders directly adds credit inquiries at the moment your score can least afford them. One broker pulling your credit once and matching the file to the right lender is the usual way around that.
Planning the route back to a prime lender
A bad credit mortgage should be set up with the next one in mind. The term is the lever: long enough for the credit to recover, short enough that you are not paying the higher rate after you no longer need to.
Ask before you sign what has to be true at renewal for a prime lender to take the file. If nobody can answer, the arrangement is not being built to end.
Common questions
What is the easiest mortgage lender to get approved with?
Private lenders approve the widest range of files because they lend mainly on equity, but they are also the most expensive. For most bad credit files, an alternative (B) lender is the better balance of approval and cost. A broker can tell you which tier your file actually needs.
Can I get a mortgage after a consumer proposal?
Yes. B lenders will consider a file once the proposal is discharged and new credit has been re-established, sooner with a larger down payment. Prime lenders want more time after discharge. The clock starts at discharge, not at filing.
Do private lenders care about credit scores?
They look, but the equity in the property is what secures the loan. A low score raises the price rather than ending the conversation. The lender will still want to understand the exit, how and when the mortgage will be repaid.
Will applying to several bad credit lenders hurt my score?
Multiple hard inquiries in a short period can lower a score that is already under pressure. A broker pulling your credit once and presenting the file to the right lender avoids that.