While credit rating is one of the biggest factors lenders consider when approving a loan, people with poor credit are not necessarily shut out from homeownership. Poor or bad credit occurs when your credit score is below 630. Credit histories and lower credit scores are compiled by credit reporting agencies, such as Experian, TransUnion, and Equifax.
If you have a poor credit score, then sub-prime mortgages will be your best option. Here at Winnipeg Mortgages, we are proud to offer a bad credit mortgage program. While there are other subprime lenders that will work with you if you have bad credit, they will often charge a higher interest rate and add on numerous fees. With us, you will get a fair shake with great rates and no hidden fees.
You can contact us today and schedule a consultation to know if the subprime mortgage is the best option for you.
Understanding what you are getting into is the best way to avoid any trouble down the road. A subprime mortgage is a home loan given to borrowers with poor credit (a FICO score of 620 or below). With a low credit score, lenders in the subprime mortgage market only offer this type of loan and not conventional or any additional mortgages. Due to the higher risk of default, these loans have higher interest rates than other home loan products.
While people with bad credit are often given subprime mortgages, this does not mean that all subprime mortgages are given to people with bad credit. Some people may have good credit but simply cannot qualify for a conventional mortgage because they don't have a large enough down payment or they have too much debt.
You need to be a Canadian resident to be able to apply and qualify for subprime mortgages. The main criteria that we're going to look at are:
You will also need to provide documentation such as:
Expect an interest rate of 1 to 3% and shorter periods of amortization, close mortgage terms, higher origination fee, and monthly mortgage payment. While these numbers seem to be high, it is still better than renting out a property.
As a borrower, you have different options for subprime mortgages. The four most common types of subprime mortgages are:
The best way to find out what type of mortgage is best for you is to consult with a professional. Talk to one of our specialists here at Winnipeg Mortgages and learn more about the subprime mortgage program.
consider subprime loans?
y you should consider subprime loans? If you are having a hard time applying for a loan from traditional lenders, then going to a subprime lender might be a good idea. Subprime mortgage lenders typically accept people with bad credit. The main downside of a subprime mortgage is the higher interest rate compared to a traditional mortgage. But if you can afford the higher mortgage payments and just can't do anything with your credit score, then a subprime mortgage loan is a good option. Other than that, here are some advantages of a subprime mortgage:
for a subprime mortgage?
The requirements for a subprime mortgage are not as strict as a traditional mortgage. But there are still some things you need to meet in order to qualify.
Here are the requirements for a subprime mortgage:
You must be a Canadian resident.
The value of the property must be less than $1,000,000.
You must have a minimum down payment of 5%.
You must have a minimum credit score of 600.
You must have a steady income and employment history.
You must not have had any bankruptcies or foreclosures in the past.
You must not have any current delinquencies on your credit report.
Aside from this information, we might ask you for other documents to support your application.
Here at Winnipeg Mortgages, we make sure to simplify the process for you. We understand that buying a property can be overwhelming, especially if it's your first time. But with our help, we can make it a breeze.
It's that easy! So don't hesitate to apply today.
Get started with your home loan with the help of our experts at Winnipeg Mortgages. We'll guide you through the process and help you find the best mortgage for your needs. Call us today and see if you qualify for a subprime mortgage.