With the recent policy changes about mortgages in Canada, people are now having a difficult time to get approved for commercial mortgages, especially with the bad credit. These mortgage policies were changed back in 2019 and now, you have to manage excellent credit and high income to apply for the commercial mortgage otherwise you have rare chances of getting it. Let’s discuss further what is a bad credit and how to get approved for a commercial mortgage with bad credit in Canada. Have a look:
Usually, when someone applies for a mortgage, he or she should have a source of income or property so that he or she can repay the loan amount in the future. But if you do not pay your installments on time, then you will have the label of bad credits even it is your credit card history. It is understandable that banks would make policies to lent mortgage to those who can pay the bank in the near future. So, those who don’t pay on time missed their installments, have a first and second mortgage on their name and have been delaying payments on a credit card as well then they get bad credits and this way Canadian banks won’t consider them for any mortgage loans. The Canadian banks only consider giving mortgages when the application holder has good credit, great credit, or excellent credit history. If you fall below these categories, you might not get approved by the banks in Canada. In such situations, there are other lenders that can give you mortgages through alternative channels. In Canada, they are known as B lenders. These lenders work privately and don’t involve the strict rules and regulations that a bank has to follow.
Companies like Clover Mortgage knows a lot of B lenders that would give people mortgages living in both the big cities like Toronto, Ottawa, Mississauga, Oakville, Oshawa or the small towns like Barrie, Ontario, London, Simcoe County and many more like that. These B lenders have specialized in a variety of mortgages to facilitate people’s needs. The lenders understand that bad luck can happen to anyone, but it doesn’t mean that he or she should be deprived of opportunities to make his or her life better. These mortgage loans have fixed prices and have a shorter tenure than the usual bank mortgages. Let’s suppose Mr.Tulman speaks about getting a mortgage with bad credit in Canada, then where would he go to find the opportunity? Well, he can simply come to Clover Mortgage and ask for it. B lenders don’t usually emphasize on credit history, but their decision is based on the value, location, condition, and marketability of a property. You may have to pay a large lump sum amount as a down payment if your credit is really bad. Apart from that, you have to prove your monthly income, a reliable co-signer and show a recent appraisal of your property. If things go smoothly, you will get your mortgage within a few months.