Best Bad Credit Mortgages In Canada

Credit scores play a critical role in determining your eligibility for a mortgage. Lenders in Canada use this score to assess your financial history and ability to make timely mortgage payments. 

A credit score below 600 is generally considered poor for mortgages in Canada. 

Some lenders may have even stricter guidelines and will not consider any score below 640 as poor for their mortgage. 

Generally, credit scores below the ranges above are considered unfavourable for a mortgage in Canada. 

Such scores will mostly render you ineligible for a mortgage with traditional lenders such as your bank and credit unions. 

However, borrowers with bad credit may still have mortgage options available through B-lenders or Alternative mortgage lenders in Canada. 

If your credit score falls below 640 or 600, you can explore mortgage options through approvU. 

Bad credit mortgage lenders are more adaptable in their lending policies and willing to consider alternative sources to support your ability and willingness to pay your mortgage. 

But, these bad credit mortgages come with an interest rate premium to compensate these lenders for taking the extra risk of lending money to you.

In addition to the higher interest rates, you may also face additional costs and fees associated with obtaining a bad credit mortgage, such as lender fees, broker fees, appraisal expenses, and other overall mortgage closing costs.