Even When The Banks Say No, We Say Yes!
Although your credit history is one of the most important factors for getting approved for a mortgage from a bank, there are many non-bank lenders that do not place as much importance on a borrower’s credit score, and some lenders that place next to no importance on a borrower’s credit history.
Given today’s extra strict guidelines, more and more Canadians are being turned away by their banks for mortgages. Even if you have good credit, but are self employed you might still have trouble qualifying for a mortgage at a bank. Have no fear, Clover Mortgage is here! In most cases, we can help you get approved for the mortgage you need even if you get denied by the bank for a mortgage.
Just because you have bad credit doesn’t mean you shouldn’t be able to get a loan for your home. At Clover, we are committed to helping all of our customer get approved for a mortgage that they need and helping arrange bad credit mortgages for clients with credit issues. We will set you up with a short term solution from a boutique alternative lender to help you re-establish and improve your credit score. Our knowledgeable Mortgage Agents will provide you with a solid plan to help you get back on track so that you can get approved with a bank or institutional lender in the near future.
Here are a few steps you can take to make your bad credit mortgage approval process a little easier.
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. At Clover, 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.
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. At Clover 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.
Even if you have BAD CREDIT, we can help you GET APPROVED!
Why Work With Us
*Rates start as low as 3.99%
*Rates are subject to change. Terms and conditions may apply.
We pride ourselves on quick, easy & honest service. Our clients always come first.
We specialize in dealing with bad credit & bank declines. We turn a “no” into a “YES!”
*No credit checks. No complicated application.
*Terms & conditions may apply.
Our Customers Love Us
I was in debt and needed help getting back on track. My mortgage agent at Clover Mortgage helped me get approved for a home equity loan to consolidate all of my debt in one small monthly payment. Now I’m saving over $1,000 a month in interest and am left with less debt and more money in my pocket at the end of each month. Thank you Clover!
I’m a self employed independent contractor. I earn a decent income, but when I went to the bank to refinance my home, they denied my application telling me that I didn’t have enough “provable” income to qualify for refinancing my home. When I came to Clover I was almost out of hope. My Mortgage Agent at Clover was caring and professional, and help me get a great rate and flexible terms on full refinance. The whole process took less than 48 hours! I was impressed at how quickly and easily they were able to get me the money and home refinance I needed. Thank you Clover Mortgage, I’m recommending you to everyone I know!!
I had really bad credit, but really wanted to purchase a Condo. When I went to the bank they made me go through a lengthy application process that took weeks, and then they turned me down at the end of it all. When I found Clover Mortgage online, I called them and a friendly Mortgage Agent was able to help me get approved for a mortgage quickly and hassle-free. I got a good rate and now live in a home that I am comfortable in and am able to easily afford my monthly payments.
I definitely recommend Clover Mortgage to any new home buyer! They were very professional and helped my husband and I get mortgage for our new home at an even better rate than the bank was offering us. They also helped us get the mortgage with a smaller down-payment than the bank demanded from us. Since we did our mortgage with Clover, several of our friends and family members got their from them also, and Clover Mortgage has been able to help all of them, even the ones that were completely turned away and rejected by their banks.
My husband and I found ourselves in a tough situation. Luckily my expert mortgage broker at Clover Mortgage helped us get a fast and easy approval for an amazing rate for refinancing our home. Clover’s service is the best I’ve ever experienced and I’ve been recommending them to all of my family members and friends ever since. Thanks for your help Clover!
I definitely recommend Clover Mortgage to any new home buyer! They were very professional and helped my wife and I get mortgage for our new home at an even better rate than the bank was offering us. They also helped us get the mortgage with a smaller down-payment than the bank demanded from us. Since we did our mortgage with Clover, several of our friends and family members got their from them also, and Clover Mortgage has been able to help all of them, even the ones that were completely turned away and rejected by their banks.