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Tough Credit? Learn How You Can You Get Mortgage For Your Hamilton Home

Weak credit history? Don’t worry! There are ways and means to still own a home in beautiful Hamilton. Major Canadian banks have restrictions on tough credit clients, so you need to look out for lenders who specialize in loans to clients regardless of their credit history. Look online if you can’t find them in your neighbourhood. If you meet their specifications, online lenders are willing to help you secure a loan.

 

Do remember that higher the down payment, better are your chances of securing approval. Some ask for a co-signer with a reliable credit history to assure your credibility. Bigger financial institutions are wary of taking risks. However, smaller lenders are willing to take risks if you give them enough reason to depend on you. You need to provide them with a few details, such as your income range, employment details, and whether you are a first time home buyer. Below are a few more details to qualify you.

6 Ways to Qualify for Mortgage with Tough Credit History

 

  1. Secured Loans: For borrowers with weak credit history, there are secured loans available from select lenders. All you need to provide are details for proof of sufficient income. If you earn enough to return your loans on time, you may be considered, although your down payment may be higher.

  2. Higher Down Payment: While good credit home buyers have low down payment requirements of 5-10%, those with weak history may have to put as much as 15-20%.

  3. Buy Within Your Means: Make sure your ideas of the perfect home in Hamilton match your budget. Set a price range based on your income. If your Debt to Income Ratio (DTI) reflects your inability to meet monthly payments, your home ownership plans could be more challenging. Take a look at your housing expenses and factor in property taxes, hazard insurance, monthly maintenance fee, interest charges and principal amount. Take any other added expenses you may have such as monthly loans or leases on your vehicle, credit card expenses, student loans, alimony, and child support.

  4. Online Mortgage Sites: There are mortgage sites available online if you can put 15% down payment. Options include open, variable or fixed rate and special mortgages, depending on whether you are a first time home buyer or repeat buyer. Interest rates can range from 2.89% on a one year mortgage to 4.49% on a 10-year loan. For variable mortgages, the rate is at 2.45%.

  5. Family Lending: If you can provide proof of income with a professional appraisal, you can get a preapproved loan from family lenders who specialize in such cases. Rates vary from 2.3% for variable rate mortgage to 4.39% for 10-year loan periods. Fixed rate mortgages are offered at higher rates. Loan amounts can range from $50,000 to $500,000 and up.

  6. Canada Lend: If you have tarnished credit from financial upheavals such as bankruptcy, you can also approach Canada Lend online. You will be required to provide your SIN, employment details, income, any outstanding debts, current mortgage balance, and residential value and status. Fixed rate loans terms range from one to five years.

RMA Mortgage Brokers - Reliable Brokers to Secure Your Hamilton Home

In a tough credit situation, you secure a mortgage based on the strength of your down payment and income. To receive a mortgage loan at competitive interest rates despite weak credit history you need experienced mortgage brokers who are helpful, understanding and efficient. The good news is that such brokers are not hard to find if you know where to look. Call us to understand how we can help you.  

 
Latest Blog Post
Tough Credit? Learn How You Can You Get Mortgage For Your Hamilton Home
August 10, 2018

Weak credit history? Don’t worry! There are ways and means to still own a home in beautiful Hamilton.

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Thank you so much Armand, you really made our first time buying process easy and enjoyable. We will certainly be referring you to all our friends and family who'll be...

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