Millions of Canadians suffer from bad credit. Past financial mistakes can haunt you for a long time, taking years to finally drop off your credit report. In the meantime, what are you to do about buying a home? You might feel that your only choice is to continue renting, but that’s not the case. You can get a mortgage for bad credit in Toronto and become a homeowner.
So, what’s a mortgage designed for borrowers with bad credit? Really, it’s exactly what it sounds like. These mortgages are offered by lenders who are less risk averse than traditional banks and credit unions. There are a few differences between a mortgage for bad credit in Toronto and a traditional mortgage, though.
One way this type of loan differs is in its term. Usually, they’re designed to be paid off in a shorter amount of time. Once the loan is paid off, you can refinance the home at a lower rate. Think of this as a multipurpose tool allowing you to not only enter the world of homeownership, but to rebuild your credit at the same time.
Another difference here is that the interest rate for bad credit mortgages is generally higher than a conventional home loan. That’s natural, as the lender is taking on more risk. However, because they’re paid off sooner, you still win.
If you’re struggling with bad credit but need to buy a home, Mortgage Captain can help you navigate these troubled waters. We can connect you with a variety of lenders more than willing to offer a home loan. Call us today at 844-254-4376 to learn more about the process, our lending network, and how you can become a homeowner.