|Address||Cambridge, ON N1R8K6
|If you have bad credit, the lender is taking on a higher risk by loaning you money, so most will want a much larger down payment – often 20-35%. The bonus is that a larger down payment may give you a little more leverage when it comes to negotiating a mortgage rate, because you are less risky than someone who has very little equity in their home. On top of having to save a larger down payment, you’ll also need to have some more cash set aside for extra fees. First, lenders can charge up to 1% of the mortgage loan value for processing a bad credit application. As well, because banks typically don’t compensate brokers for bringing them clients with credit issues, your broker may also charge you an additional 1% per cent. Your credit score has a direct impact on the lender you can work with, as well as the mortgage rate you can get. If you have good credit, we can work with the big banks and access the best mortgage rates. If you have less than stellar credit, you’ll have to work a “B lender” or private lender and, in turn, be subject to higher interest rates. Remember, your lender looks at your credit score and report to determine how risky it would be to lend money to you. If you want to be able to access a lower mortgage rate at your time of renewal, make all of your monthly mortgage payments on time and do other things to boost your credit score, including using a credit card responsibly and/or paying off any other debts you may have. I’m here to help. Private message or call me anytime|
The above message is from an independent, third-party provider and Kijiji is not responsible for its products or services.