Getting a bad credit mortgage in Canada is far from straightforward but is still achievable. Bad mortgage brokers can help, but there are several important steps everyone with a lower credit score can take to decrease rates and improve their chances of securing a mortgage.

Knowing your credit score is essential. If you are reading this, then chances are you know that your credit score falls below the threshold where you could apply to banks and other big lenders. You can find out your credit score online or ask for help from your bad credit mortgage broker.

After you know your credit score, you can gradually improve it by following simple routines that will increase your chances of securing a mortgage. In many cases, you will also need a larger down payment to qualify.  Finding a reliable co-signer for your mortgage can also help. You will find more details on how to get a mortgage with bad credit below.

Improve Your Credit Score

Although improving your credit score to secure a mortgage may not be the first piece of advice many would expect, it should not be taken lightly. A better credit score not only increases your chances of getting a mortgage but also helps decrease the applicable mortgage rate and payments.

There are several simple steps to achieve this. First, those interested in improving their credit score shouldn't ignore unpaid bills. They should try to pay them on time or contact the provider and defer payment. They should also avoid applying for new credit cards and not overextend their credit card limit. Finally, it is advisable to keep the oldest credit card active to have a longer credit history.

Work With a Bad Credit Mortgage Lender

'A' mortgage lenders, such as banks and other bigger financial institutions, don't work with borrowers whose credit score is below 600. If you find that your credit score is already below that threshold, you will need to work with bad credit mortgage lenders, also known as  'subprime' lenders.

These institutions focus specifically on borrowers with lower credit scores. They will apply higher mortgage rates and a different set of requirements than a bank would. Bad credit mortgage lenders, such as trusts, or private lenders, are the only available options for those with bad credit.

Prepare a Larger Down Payment

Borrowers with bad credit scores should be prepared for a larger down payment when trying to secure a mortgage. While those with good credit scores may need only 5%, others will have to supply 20-25%, which will work as an additional guarantee for the lender.

While this may deter many borrowers, the prospects to secure a mortgage with bad credit without larger down payments are low. At the same time, paying a higher down payment comes with the benefit of skipping the mortgage default insurance required for all mortgages in Canada, when the down payment is less than 20%.

Find a Reliable Co-Signer

Lenders working with bad mortgage credit often ask borrowers to bring a reliable co-signer with a better credit score. When a borrower defaults on a mortgage, the co-signers would have to step in and pay it.

Certainly, your co-signer should be comfortable with this situation. Borrowers should also be aware that co-signers would also be co-owners, and their names will appear on the title of the property. For this reason, such an arrangement usually involves parents, relatives, or close friends.

Get Professional Mortgage Help

 Borrowers who follow the above steps have considerably better chances to secure a mortgage, even with a lower credit score. All borrowers with bad credit can benefit from involving professional mortgage brokers that  provide mortgage options for those with poor credit . These brokers work with different lenders and can suggest the best option for you.

 If you are looking for an expert bad credit mortgage broker near you, contact  EasyMortgageLend.com today by phone at (647) 895-3921 or email us to find out how we can help you get a mortgage with bad credit.