Mortgage rates are at near record lows, which has kept our housing market strong. If you want to buy a home with bad credit in Ontario or Quebec, you will have to fill out a mortgage application. Most banks will not grant you a loan if your credit score is too low. You do not want to fill out too many loan applications because they will pull your credit report each time, making your score decrease further. So what are your best options?
The first place you can start is with a mortgage broker. There is no charge for using a mortgage broker, but they will only pull one credit report and shop your loan over hundreds of lenders across Canada. They can often find lenders for hard to place – including bad credit- mortgages in Ontario since they not only deal with banks but also with finance companies, credit unions, trust companies and private lenders. Your mortgage professionals, like Mortgage Medics in Ontario, can help you repair your credit and improve your credit score to qualify for better rates.
If there is no chance of you finding a lender with your current credit report, they can set you up with a reputable Ontario rent to own homes comany, or Quebec bad credit mortgage -rent to own homes if you are looking in La Belle Province.
With the special rent to own program, you get to choose your dream home now and can move in right away. You make affordable monthly payments every month on time – to help rebuild your credit and build up some equity. When the rental period expires, they help you qualify for a mortgage to take posssession of the home. This way, you get to lock in a price before home prices rise further. You buy the home at the pre-determined price after the lease period. Any increase in the home’s value above that price is yours to put towards purchasing the home, i.e., it qualifies as additional equity – helping your down payment.
If you are dreaming of owning a home instead of renting, you can get a home even with bad credit through a quality lease to own program, and start building equity and financial security.