Navigating the real estate industry in today’s day and age can be difficult to say the least, and that is especially true for individuals who have less-than-perfect credit. Fortunately, there are opportunities to get a bad credit mortgage in Hamilton so that everyone can enjoy the dream of owning their own homes.
According to CAAMP, or the Canadian Association of Accredited Mortgage Professionals, 69% of the population in Canada are homeowners. Only 29% of people in the country own their homes outright while the remaining 40% own a home with a mortgage. Lenders base their credit decisions on risk, meaning that those with bad or challenged credit often do not qualify for mortgages using traditional means. As a result, only about 5% of Canadians are able to secure mortgages with poor credit.
The mortgage rates that are available vary greatly based upon the applicant’s financial position and the terms of the mortgage. For instance, the average for closed-term fixed rate mortgages averages from 3.29% to 5.79% based upon the length of the term, which is anything from one to 10 years. Open-term mortgages, on the other hand, have interest rates that average out at about 6.5% for six months to one year. Poor credit can have an impact on those rates since financial institutions face greater risks when lending.
Depending upon the type of mortgage in which an applicant is interested and his or her own unique credit situation, it can often take weeks to process the application and ultimately come up with a loan offer when going through traditional financiers. Individuals must often visit several lenders in order to get an offer that works for their needs. There are services available that allow people to submit a single application for multiple lenders before receiving an offer within 24 hours, speeding up the process significantly and reducing much of the stress associated with obtaining a home loan.
Reasons for Mortgages
People with bad credit can take out mortgages for a multitude of reasons, as well. The most common reason for taking out a mortgage is to buy a first home, though many Canadians refinance their homes for the purposes of getting a lower interest rate or even paying off other debts. First and second mortgages are available to those who have challenged credit, and they often come with competitive interest rates as well as affordable monthly payments. The down payments associated with these loans are also flexible and are about 10% of the total purchase price, on average.
Just about anyone can own a home these days regardless of their past credit. With the right company, the right tools, and the right know-how, nothing is impossible. A simple application is all it takes to discover the rates that are available, and by applying for a mortgage or home loan today, individuals can realize their dreams sooner than they might think.
BIO: Mortgage Central is a Toronto bad credit and second mortgages company that caters to individuals in Canada who have bad credit or no credit and who are interested in a home loan. The company offers fast, personalized service and a promise to provide outstanding interest rates.