Bad credit Canadian mortgage: Lenders that understand

When thinking of a bad Canadian credit mortgage, keep in mind the difference between good and bad debt. Remember bad credit rating does not mean you can't qualify for a bad credit mortgage. We'll discuss this more below.

Our mortgage lenders can pre-qualify you for your maximum bad credit mortgage amount, and will calculate your estimated monthly payment. Once you have a better feel of how much this payment will be, take the time to plug this into your monthly budget and assess whether you're prepared to make this payment every month. Even though you may qualify for a particular loan amount, you may decide that the monthly payment is more than you can comfortably afford. Your Loan Representative can help you adjust this amount to a monthly payment you feel comfortable with, if need be.

 It is first important to distinguish between good debt and bad debt. From a purely financial perspective, good debt is borrowing in order to purchase an asset that is likely to appreciate in value, like a home for instance. Good debt may become better debt when the government subsidizes the repayments, as it does with the home mortgage interest deduction.  Bad debt is borrowing in order to purchase an asset that is likely to depreciate in value or borrowing for non-asset like a vacation. And, bad debt has been made worse now that the government no longer subsidizes repayments for certain kinds of debts.

And finally don't count yourself out, a not-so-perfect credit history does not necessarily mean you cannot purchase a home. Sometimes bad things happen to good people. Our bad credit mortgage lenders understand and are committed to making home ownership possible.