How to Take Advantage of Canada’s Hottest Housing Market With Poor Credit

How to Take Advantage of Canada’s Hottest Housing Market With Poor Credit - Infographic

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While there is some speculation that the housing market in Canada will change somewhat from 2016, the projections by the Canadian Real Estate Association bode well for several markets throughout the country. The Greater Toronto Area shows every sign of remaining strong during 2017, although the supply in Toronto proper is not projected to keep up with the demand. That prompts real estate professionals to project more emphasis on the other cities in the GTA as well as those in the Greater Golden Horseshoe.

At present, Alberta is predicted to experience a net increase of a little over 5% in activity during the calendar year of 2017. Throughout the country, shifts in pricing and in demand will impact the overall national average and still leave the GTA as one of the strongest and most desirable markets. Even those who may have less than perfect credit stand a good chance of obtaining financing. Here are some tips that will make it easier to take advantage of the housing market and purchase the home of your dreams.

Shake Off the Feeling That No Lender Will Work With You

It’s true that not all lenders are willing to work with those who have less than perfect credit. The good news is that others are geared toward providing loans for those who experienced unfortunate circumstances a few years ago or happen to be on a fixed income.

One of the ways that lenders of personal home loans in Hamilton work is to consider the amount of the loan versus the market value of the property. If the purchase is near the market value and the property is anticipated to increase in value over the years, that reduces the amount of risk the lender assumes. Provided the applicant generates enough income to cover the mortgage payment, those past credit problems will carry less weight.

Perhaps the local bank will not work with you, but there are networks of private lenders who will not hesitate to evaluate your application and are more likely to provide the financing.

Seek Advice from a Mortgage Broker

Brokers work with multiple lenders, including those who are known to extend bad credit mortgages in Hamilton. Be frank about your circumstances, including how much you could allocate to a monthly mortgage payment. The broker will identify lenders who are most likely to be interested in doing business with you. That saves a lot of time and increases the odds that the financing will be approved before someone else purchases your dream home.

Be Prepared to Pay a Higher Rate of Interest

The latter part of 2016 saw both RBC and TD increasing rates by a modest amount, with the hikes being between 15 and 30 basic points. That does translate into higher rates for those seeking poor credit mortgages in Hamilton as well as those with excellent credit. When you speak with a broker, keep that in mind. You should also remember that the higher rate does not have to last forever. Several years down the road, your credit could improve enough to merit a lower rate by means of refinancing the loan. The same broker who helped you find your first mortgage can also be your window to lenders who will offer more competitive rates in the years to come.

When it comes to your ability to secure a mortgage, never make assumptions. Talk with a lending professional today and explore your options. Buying a home may be easier than you think.

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