Bad Credit Mortgage in BC | How does this work?
BC is a competitive mortgage market for brokers. What differentiates good brokers from the rest is the ability to handle credit issues with the lenders. A poor credit history should not stop you from owning a home.
The Question then is.... How do I get a Mortgage BC with Bad Credit?
We work will our clients to determine the best method to move forward towards a mortgage. In some cases it can happen immediately, in others more work is involved to clean up credit, improve the credit or ensure there is enough money for closing and down payments if required.
Here is what we will cover on this page:
- Examples of how clients obtained a mortgage with bad credit in British Columbia
- Down payment requirements for poor credit mortgage loans in BC
- Lender requirements
- Income requirements
- How long will it take to get a mortgage with poor past credit
Examples of how clients with poor past credit in British Columbia were able to get a mortgage:
- Past bankruptcy - There are lenders
who will lend to clients as little as six months after bankruptcy. The
key is to ensure that the client fits inside the lender profile. In some
cases, while the client does fit the profile the client has sufficient
merit to provide an exception.
- Example 1: The client had been in an extended bankruptcy arrangement but was eventually discharged. A lender was contacted and provided an commitment letter. The lender discovered that the bankruptcy had been extended. A secondary lender was contacted, the client did not fit their matrix, however the merit of the client was reviewed by the broker with the lender. "The broker was able to convince the lender that this client deserved a review." The client closed on their house 10 days later.
- Does not qualify for CHMC or Genworth Insurance
- There are options instead of mortgage insurance. Some lenders
will provide second mortgages in BC up to 100% of the sale price of the home.
While the interest rate is higher, the total cost to the borrower can
be less. Here is an example.
- Example 2: Assuming the sale price of the home is $300,000 and an insurance fee of 3% applies. The insurance fee is $9000. Take a second mortgage to 100% with a 9% rate on the second and 5.5% on the first. If you assume you can make additional payments of $3000 per year over 3 years and you assume your house will increase in value the statistical average in Canada at the end of 3 years you will have close to $50,000 in equity in your home....Yes - Thats zero to $50,000 in three years... Yes, the opportunity presented by home ownership can be life changing.. Continued....
These are just two examples of how we help our clients in BC find the financing for a home. If you want to talk about your specific situation, please contact us at 1-800-655-6572.
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