Bad Credit Mortgage
Mississauga & Oakville
Having bad credit when you’re trying to find a mortgage deal can be a stressful time.
If you’ve been facing rejection after rejection, it can be easy to quickly become disheartened at the prospect of buying a home, but there are options out there if you have bad credit. Bad credit mortgages are a good way to get on the property ladder even if your credit isn’t the best.
That means you’ll be buying a home with a mortgage deal that suits you and your circumstances. To find out what a bad credit mortgage is and how you can secure one in Mississauga and Oakville, keep reading.
What is Bad Credit and What is Its Impact on Mortgages
So, what is bad credit? Bad credit is typically the result of missed credit card payments, late mortgage payments, and other financial discrepancies such as outstanding mortgages, high balances across credit cards, or having previously declared bankruptcy.
If you have bad credit, banks and money lenders are likely to deny loans as they’ll consider you to be less financially responsible than others who have good lines of credit. The reason why banks are a lot more cautious if you’ve got a bad credit history is they’ll deem you unreliable when it comes to repaying loans, so in an effort to reduce potential losses, they’ll assume that you don’t have the ability to repay and may reject you.
However, it’s entirely possible to get a loan or mortgage if you have a poor credit history, but the deal you get won’t be as good as it is for someone with a good credit history. The terms and rates of mortgages you receive rely significantly on your credit history, so if you’ve got a good history, you’ll likely secure a much better deal when it comes to interest rates.
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What are Bad Credit Mortgages and How Can They Help You?
It’s not all doom and gloom, as you do have options if you have bad credit. If you’re looking to get a mortgage, you can find a deal from one of the many lenders that offer bad credit mortgages.
Bad credit mortgages refer to mortgages specifically for people with poor lines of credit and are similar to standard mortgage deals, but instead tend to come with higher interest rates, and in some cases, you may not be able to borrow as much.
Bad credit mortgages aren’t just for people with bad credit, they can also be beneficial for low-income households looking to get on the property ladder or those with a self-declared income who may be at a disadvantage when it comes to securing a loan. Tajwar Rahman specializes in securing a bad credit mortgage for clients and reassuring them that their bad credit doesn’t mean they have to abandon their hopes of moving into a new home.
In fact, lenders that Tajwar Rahman works with look to mitigate their risks by also assessing the marketability, location, and condition of the property, not just your credit score. That means they won’t see your bad credit as the be-all and end-all when it comes to your mortgage terms and rates.
Are there any Disadvantages of Using Bad Credit Mortgages?
As with all things, there are some disadvantages to using bad credit mortgages over standard mortgages. Some disadvantages include increased rates and the potential for additional broker and lender fees.
However, it’s important to also consider the many positives that come with bad credit mortgages, such as quick approval times, no minimum credit checks, and the potential to improve your credit score for future loans.
Need help securing a bad credit mortgage? Contact Tajwar Rahman Today!
Are you thinking of opting for a bad credit mortgage? Are you worried that mortgage lenders in Mississauga and Oakville will turn you away for a poor line of credit? Contact Tajwar Rahman now! We specialize in negotiating lower rates for clients, regardless of their credit history. Get on the property ladder today with Tajwar Rahman!