WHY WORK WITH US
Low Rates
*Rates start as low as 2.49%
*Rates are subject to change and based on various factors and terms.
Fast Service
We pride ourselves on quick, easy & honest service. Our clients always come first.
Dedicated Team
Our team members are professinal and experienced who can help clients to find the right mortgage products at best rates!
Easy Application
Simple hassle-free process, with quick same-day approvals in many cases!
WHAT OUR CLIENTS SAY
Tsz Ho Wong
Client
My mortgage situation and lack of knowledge in regards to the changes in the Mortgage market was all resolved through Fanson Capital’s one stop shop system. Couldn’t be happy enough with their service and flexibility in getting my mortgage done, and done right!
Watson Geoff
Client
Quite a life saver lol.Got rejected by banks and then referred to Fanson. I am fairly satisfied with the lower rates and the better customer experience. Definitely will come again. Don’t even bother spending time at banks. Recommend!!
iFlourich Trading Ltd
Client
After long time seeking mortgage brokers, we chose Fanson Capital as our mortgage partner, their prompt and professionalism is none like others.
Bad Credit Or Low Income
Even When The Banks Say No, We Say Yes!
What Is A Bad Credit Mortgage In Canada?
A bad credit mortgage is a term that is used when someone who has poor credit, bad credit, horrible credit, or no credit applies for a mortgage loan.
As you may have heard or read in the news recently, in 2019 Canadians are having a harder time getting approved for mortgages at their banks due to recent policy changes. Mortgages are even harder to come across if you have less than excellent credit and high income. This is where this kind of mortgage loans come in.
Bad credit mortgages in Canada are mostly available through alternative lenders and through channels that are not as well known for mortgages. Since banks and many other larger institutional mortgage lenders will only approve the lending of mortgages to individuals who have good credit, great credit, or excellent credit. It is important to understand that even if your credit is not too bad, you could still get turned away by the banks when applying for a mortgage and other mortgage related loans.
Many of the lenders who we work with specialize in quickly approving mortgage loans for Canadian people with bad credit or low income, or self declared income. We spend the time looking for the right mortgage loans solution for your needs at the current lowest rates and best terms that are available to you.
How Can I Get A Mortgage With Bad Credit?
A bad credit mortgage is a term that is used when someone who has poor credit, bad credit, horrible credit, or no credit applies for a mortgage loan.
As you may have heard or read in the news recently, in 2019 Canadians are having a harder time getting approved for mortgages at their banks due to recent policy changes. Mortgages are even harder to come across if you have less than excellent credit and high income. This is where this kind of mortgage loans come in.
Bad credit mortgages in Canada are mostly available through alternative lenders and through channels that are not as well known for mortgages. Since banks and many other larger institutional mortgage lenders will only approve the lending of mortgages to individuals who have good credit, great credit, or excellent credit. It is important to understand that even if your credit is not too bad, you could still get turned away by the banks when applying for a mortgage and other mortgage related loans.
If you are consistently late on mortgage payments, if your taxes are in arrears, have an outstanding first mortgage or second mortgages, have missed payments on your mortgage or credit cards, department store cards or other debts, high revolving balances on a credit card and store cards, or if you have had a bankruptcy or consumer proposal in the last 7 years, this along with other factors can most definitely contribute to a very bad or low credit score. Based on a person’s credit mortgages will vary in rate and terms.
You may have heard in the news that given the strict regulations and policy changes, banks and most other conventional lenders must follow in today’s mortgage market, Canadians are more likely to get approved with an alternative lender, also known as a B lender, or through private mortgage lenders. We have access to over 40 different lenders across Canada who specialize in a variety of mortgages. These private mortgage loans and alternative mortgage lenders lend on mortgages in both major cities.
Many of the lenders who we work with specialize in quickly approving mortgage loans for Canadian people with bad credit or low income, or self declared income. We spend the time looking for the right mortgage loans solution for your needs at the current lowest rates and best terms that are available to you.
How Can I Qualify For A Bad Credit Mortgage?
Prepare A Larger Down Payment
Candidates with excellent credit can put down as little as 5% in some cases, however applicants with credit issues are often required put down at least 15% – 20%. The more you are able to invest in your downpayment, the more likely your lender will approve you and provide you with a preferred interest rate.
Prove Your Monthly Income
Every mortgage application requires a borrower to prove their income is sufficient enough to make their monthly payments. Most lenders use a formula called Gross Debt Service Ratio (GDS) and Total Debt Service Ratio (TDS) to calculate if a borrower will be able to afford their monthly mortgage payments. Bad credit borrowers should aim to keep their GDS and TDS below 30% although some lenders will still approve borrowers with poor credit who have higher debt ratios provided that they have a 35% down payment.
Get Your Property Appraised
A professional property appraisal will give your lender a realistic estimate of the value of your home. To ensure accuracy, the lenders will typically require a specific appraisal company that they trust to conduct the appraisal. Once the property is appraised, lenders often use the Loan to Value Ratio (LTV) as an assessment tool to demonstrate how risky a loan can be. An LTV is determined by calculating the borrowed amount against the total appraised value of the property. We work with a wide variety of lenders, some of which are willing to lend up to 90% of the value of the home or property, though 80% to 85% is more common when credit is an issue.
Find A Reliable Co-Signer
Getting a family member, friend, or business partner with a strong credit history to co-sign on a mortgage application will make a lender more comfortable with giving a mortgage to a borrower with bad credit.
A lender lends their money based on the likeliness that the borrower will pay back the loan in time. As a borrower’s score decreases, the risk that the lender is asked to take on increases. Therefore, certain lenders that accept a greater risk will charge a higher interest to make the risk worth their while. In order to help mitigate or lower the level of risk that the lender needs to accept, a borrower can have a co-signer who either has better credit and/or more income. The purpose of the co-signer is to guarantee the loan in the event that the borrower defaults on payments. A co-signer can be a friend and does not have to be related to you.
If you have bad credit, but a family member or friend of yours has good personal credit, they can co-sign your loan to help you get approved, and in some cases even qualify for a better rate or a more conventional lender.
Cross Collateralization
If you cannot come up with the larger down payment required for clients with credit issues or are looking for a higher Loan To Value (LTV) ratio, consider adding a second property, or even a friend or family member’s property as cross collateral. In many cases the overall loan to value ratio is calculated based on both properties and their respective loans. In most cases this reduces the overall risk for the lender by decreasing the combined LTV which will often allow you, the borrower, to put down a lower down payment and will help you get a lower mortgage interest rate with better terms.
Despite the challenges associated with getting a bad credit mortgage in Canada, many Canadian lenders are willing to give applicants with a less than ideal credit score a chance. We understand how hard it can be to get a mortgage with poor credit. We pride ourselves on working with all types of bad credit applicants and helping them get approved for a mortgage or home equity loan that is the best choice for their unique situation.
In Canada, your credit score is a number between 300 and 900 assigned to you by a credit bureau – Canada’s two major credit bureaus are Equifax and TransUnion. This number is used to tell lenders how you’ve dealt with available credit in the past. The higher your credit score the better, because a high credit score helps you qualify for the lowest possible mortgage rates.
There are a few ways to find out your credit score. First, you can go directly to the source and pay for your credit score and credit report (which is a detailed accounting of your credit history) from Equifax or TransUnion.
If you don’t want to spend the money on a detailed credit report, you can also check it for free using RateHub.ca’s free credit score tool. Once you know your credit score, you’ll have a clearer idea of whether you’ll qualify for a traditional mortgage, or whether you’ll need to apply for a bad credit mortgage.
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