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Do You Need a Poor Credit Mortgage in Ontario?

If you are looking for a poor credit mortgage in Ontario, you might be wondering what your options are in Canada. Because mortgages are based largely on credit history, having poor credit does greatly reduce your chances for approval. However, if you have equity in your home (or a sizeable downpayment for buyers) working with CMI can be an easy and affordable way to obtain a poor credit mortgage.

Those who are already a homeowner but have poor credit still have many options available to them for getting a mortgage. At CMI we work with an extensive list of lenders who will mainly require that there be equity in the property. Depending on the location and the amount of equity in the home, lenders may offer anywhere from 65-85% with homeowners in urban areas generally being able to borrow against more of their equity. Homeowners may find poor credit mortgages in Toronto based on up to as much as 90% of the home’s equity, with the exception of condos; poor credit mortgages in Ottawa can go for equal to or only slightly less than that. At CMI, we also work with lenders that approve mortgages for poor credit to homeowners whether they have verified income or if they are self-employed.

Homebuyers can often also be approved for mortgages with poor credit, however without existing home equity it can be a bit more challenging. At CMI we do have options for those with bad credit, fair credit, and those that are looking to rent-to-own.

At CMI we work with lenders that offer mortgages to homebuyers with bad credit, as long as they have a down payment of at least 20-25% including closing costs, we may be able to help. The amount required is often a bit higher in rural areas and sometimes lower in urban centres; but as long as the down payment is available, many lenders will work with these borrowers – and we know about all of them!

Homebuyers with fair to better credit have even more options when it’s time to get a mortgage. Down payments for these borrowers can be as little as 5-10%; and those who have a co-signer will have an easier time and can result in us being able to obtain better rates.

Don’t have the required 10% – 25% down payment? Rent-to-own may be an option for you to consider with at least 5% downpayment and strong job income and stability. Credit guidance is provided to ensure a smooth transition to ownership after a 1 – 3 year term.

Having poor credit can make it more difficult to get a mortgage in Canada, but it doesn’t make it impossible. When you have poor credit but have built up equity in your home or have enough for a down payment, contact us at CMI. We’re mortgage brokers for poor credit, and we’ve been helping clients in this specialty area for decades. Call us today and we’ll outline all your options and help guide you towards the one that is right for you.

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