The excellent news is it is possible to get a mortgage in Canada with bruised or poor credit. In Canada, we have two types of mortgages: conventional and high-risk.

A purchaser requires a high-risk mortgage when he or she has less than a 20 percent down payment. Lenders must insure the mortgage through one of the three high-risk mortgage insurers, which are Genworth, Canada Guarantee and CMHC. Unfortunately, to get a high-risk mortgage, a borrower must have good credit as this is a requirement of not only the banks and other various lenders but also of the insurance companies.

Therefore, if you wish to purchase a home with less than 20% down payment, you must have good credit.

A good credit score is anything over 680. As of July 1, 2020, CMHC changed its policy regarding credit scores and requires at least one applicant to have a score of over 680 to qualify for a high-risk mortgage with the minimum score being at least 600. All lenders will also have their own credit requirements for high-risk mortgages, which usually means the score must be well over 600.
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We can offer financing to those with bruised credit if they have a 20 percent down payment or more. With bruised credit, “B” lenders, also known as alternative lenders, can offer borrowers financing that is still competitive (usually 1-2% more than Prime lenders are offering).

For more information, feel free to call or write. 

Sarah A. Colucci
Mortgage Agent Lic. M14000929
Mortgage Edge Broker 10680
Direct: (647) 773-4849

Before you begin house hunting, it’s important to know what you can afford and how much mortgage you can get from a bank.

Getting pre-approved makes the home buying process much easier since you can view properties in your price range almost immediately with a better chance of successfully purchasing your dream home.

What’s involved in getting a pre-approval?
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During a pre-approval appointment, we will gather your personal information including address, date of birth and employment information. We will request to see your income documentation preliminarily to ensure we are using the correct amount in the application.

If you are self-employed or hourly, we will take extra steps to ensure we have used the most income to qualify you, which is usually a two-year average based upon your filed taxes or T4s.

Sometimes, we can use bank statements to show income for self-employed individuals. 

We will also collect other documentation that supports additional income such as child support, alimony, ODSP or the child tax credit. 

What makes a pre-approval different from a pre-qualification is we underwrite your application upfront to guarantee we have offered the most mortgage you will receive. We also have an interest rate held for you for up to 120 days which allows you to shop for a home knowing you will still receive a great rate despite rate fluctuations.

To get started on a mortgage pre-approval today, apply here.
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Sarah A. Colucci
Mortgage Agent, Lic. M14000929
Mortgage Edge, Broker 10680 
Direct: (647) 773-4849