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Mortgage with Bad Credit Score

It is very important to properly manage a good credit history to get a mortgage. Banks check your credit report and decide if you are eligible based on that information.

 

It is very easy to destroy your credit score by simple things that you might not even think about, like late payments, going over the limit, using your cards too often or not using them at all. At the same time, it’s very difficult and takes a lot of time to get it back to normal.

 

So, what is a credit report

 

A credit report is a primary tool that lenders use to establish a borrower’s creditworthiness. It reflects current outstanding balances and maximum credit limits; plus shows how many times the borrower has applied for credit and the status of that application. All this information greatly influences a borrower’s credit score. 

 

In Canada, there are two credit reporting agencies: Equifax and TransUnion. In addition to a borrower’s credit profile, lenders often make decisions based on applicants’ employment, indebtedness compared to income level, and the ability to easily make payments for a sustained period.

 

Credit Score Breakdown 

·     30% Credit Utilization 

·     35% Payment History 

·     15% Length of Credit History 

·     10% Inquiries 

·     10% Type of Credit 

 

CREDIT UTILIZATION: 

A measure of how much of your available credit, on credit cards and/or lines of credit, is being used. It also factors in the number of accounts with balances and the amount paid down on installment loans. Generally, lower credit utilization demonstrates restraint and is viewed as positive. 

 

PAYMENT HISTORY: 

A credit score shows how all credit accounts are being repaid. Not only does this consist of any late monthly payments, but also items of public record and foreclosures. It’s important to note that a co-borrower has just as much responsibility on the payment as the primary borrower. For instance, a missed payment on a co-signed credit card will show on both borrowers’ credit reports. 

 

 LENGTH OF CREDIT HISTORY: 

A credit score does not only consider the date that the first account was opened, but also the average age of the accounts on the report. Creditors typically want to see at least two open trades on a credit report, each being used for a minimum of two years. 

 

INQUIRIES: 

Borrowers who continually seek new credit can negatively impact their credit score. An exception to this are borrowers who are rate shopping for a mortgage or auto loan over a short period of time. In these cases, the credit score will not be meaningfully impacted. Also, credit inquiries made by the borrower or a potential employer are typically not factored into the score and are considered ‘soft’ inquiries. 

 

TYPES OF CREDIT: 

In general, lenders and creditors like to see borrowers manage a variety of credit types. A borrower’s credit score can improve if they have demonstrated the ability to manage several different credit accounts, rather than having only installment loans or only revolving credit. 

 

It is very important to manage a good credit history to get a mortgage.

 

If you have any issues with your credit, talk to us and we will find the best and most efficient way to improve your credit score to help you purchase a new home. 

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Getting a mortgage is a very stressful time. Iryna and Oleh provided exceptional service in answering all of our questions and making sure we felt comfortable with the decisions we made. They helped us in determining what we could afford and whether a fixed or variable rate was most suitable for us. They are extremely knowledgeable and professional and worked hard to get us into the home we really wanted. We couldn't be happier and would recommend Iryna and Oleh to ANYONE looking to buy a home. Thanks again
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I was so nervous! I wanted to make sure I have all the money ready on time - I know how hard it to get for the second purchase ? Thank you, Iryna. You are made of gold !! ?
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Iryna, Thank you for your invaluable help! I realize that it was not an easy task and required a high degree of ingenuity. No doubt I saved your contacts for future uses and/or referrals. From sunny Manitoba (with a balmy temperature of -21C)
Alex
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From the beginning, I was impressed by her attendance to details and swift reply to any questions leading to a smooth acquisition of a new mortgage. Iryna’s natural capitalization on her vast experience let her path to becoming an independent mortgage broker. This turned out to be to my advantage while shopping for a very competitive mortgage rate during second house acquisition, and I found Iryna to be a great asset while facing the unknown territory of bridge financing within the new approval process. I would highly recommend Iryna’s services to anybody who is in need of a mortgage or any other financial services her company is offering, you will like the result, I know I did.
KK
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Hello Iryna, We would like to thank you and your team again for great job in achievement our goal. Your friendliness, professionalism and knowledge was a huge help in getting this new milestone. Your communication was as transparent as can be. We had some problems in understanding the process sometimes, but you guys always were patient enough to clear things up in a very transparent manner. You were always on top of things and always available for us to communicate. Your responses always appeared in a snap. We will recommend you to all of our friends and relatives in the future. We definitely will be in touch. Happy holidays!
Irina & Andrey
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When Iryna comes to mind, there is one word that stands out more than others that I can use to describe her and that is: Dedication. From the first consultation at her office to the latter stages of mortgage hunting, Iryna has been consistent and dedicated to finding Troy and myself the best possible mortgage suited for our lifestyle and financial needs. If you need her in the evening or early morning e-mails, Iryna is always available to meet your needs and is working hard to take care of you as if you were her own family. Troy and I have grown very fond of Iryna and feel blessed to have her in our corner. We couldn’t have come far in the journey of first-time home buying without her dedication.
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