Mortgage Refinancing
with Bad Credit
Refinancing your mortgage could save you hundreds of dollars
per month, help increase the equity in your home more quickly, or facilitate
that large purchase you have dreamt of for so long! Your home is one of your
most valuable assets and it is important to make that asset work for you to
improve your financial situation or reach your financial goals.
If you are one of the many Canadians considering a mortgage
refinancing package but are worried about a poor credit rating, there is hope! Up
until recently, it was impossible to qualify for mortgage refinancing in Canada
if you had bad credit. Although it is more difficult to qualify for refinancing
with a blemished credit report, many established mortgage and credit
specialists such as Canada Lend now have a policy of working with all credit
scores.
In Canada, credit scores range from 300 up to 850 points –
although 850 is the highest attainable score, if you have a credit score of
less than 650, it is unlikely that you will be considered for credit with a
Major Financial Institution. Although it is possible to access your credit
score, it may vary from the number a lender receives, as each creditor applies
a particular set of risk rules. There are many reasons why you might find
yourself with a low credit score, and it is also quite difficult to pinpoint
exactly how your credit score is calculated; however, the following are some
factors which may have taken their toll on your score:
Payment History
If you do not have a good record of paying all of your bills
on time or have had your account sent to a collection agency, your credit score
may be negatively impacted.
History of Accounts
A bad credit score may be due to the fact that you do not
have an established history and therefore have not proven yourself as a good
credit risk.
Multiple Credit Inquiries
Opening numerous credit accounts may negatively affect your
credit as it implies that you may be experiencing financial difficulties.
Unfortunately, there are many other circumstances which may
reduce your ability to qualify for mortgage refinancing with bad credit, and
once you are labelled as high risk, it may take up to ten years to improve your
credit reputation. Many Canadians would prefer not to wait for such an extended
period before unlocking the benefits associated with refinancing their home; and
now they don’t have to! Specialists such as those at Canada Lend have access to
a network of private lenders catering to clients with bad credit issues,
including bankruptcy. These lenders will work with you to secure the best
possible interest rates, secure your loan and assist in making your finances
more manageable. It may also be possible to increase your mortgage up to a
maximum loan-to-value ratio of 85%, based on how much equity you have in your
home.
Find out what your options are today – set up an appointment
via Canadalend.com and have an expert assess your complete financial situation
and connect you with the right mortgage refinancing plan to meet your needs –
even if you have a history of bad credit!