Even if you have bad credit, there are still financing options available to you when considering purchasing a property. When looking for Canadian mortgage rate programs that consider bad or poor credit, the first thing to focus on is what currently shows on your actual credit score and credit profile. There are varying degrees of weak credit, and understanding your own credit profile in close detail can help locate suitable lenders.
Credit Score Crunch
A credit score that is below 650 for example, may be considered bad credit by many lenders, but there are still institutionally based low mortgage rate providers that will consider credit scores between zero and 650. The key is to focus on the lenders that are the most relevant to your credit profile and ignore the ones that will not be able to supply any bad credit mortgage options.
There are two ways for you to better understand your credit. You can contact either of the two credit bureaus that provide Canadian credit reports (Equifax and Trans Union) and get them to send you a copy of your credit report. You have the right to receive a copy of your credit report for free from these agencies. However, the free report does not include your score, which is typically an essential credit scoring element of most mortgage lenders.
To get a copy of your credit score, you need to go to either Equifax or Trans Union’s website and purchase a credit report package that includes your credit score. Not only does this allow you to see what a lender will see when you make an application, but because you made the request, the credit inquiry does not have any negative impact on your credit score (excessive credit inquiries requested by lending institutions on your behalf are considered by the credit reporting agencies to be negatives against your credit profile and can actually reduce your credit score).
Find Out Through Financing
Another method to understanding your credit is to apply for financing through an experienced mortgage broker. Once you provide written permission, the mortgage broker can access your credit report and provide you with the most relevant options that relate to your credit profile. At this point, any application you make will only be to a relevant lender whose criteria match up with your credit history and score.
For the average person with bad credit, the process of finding relevant lenders can be daunting. This is where a best mortgage rate broker can provide excellent value to your search process.