Many Canadians find themselves bogged down with a bad credit rating for the wrong reason -- illness, losing a job, or simply not understanding consumer credit.
Sometimes bad financial situations happen to good people and bankruptcy is the only way out. But it's not all doom and gloom -- there are a number of strategies for putting your credit back on track and getting approved for a mortgage, even after bankruptcy.
Going from one financial institution to the next, only to be declined again and again can be very frustrating, which is where an experienced mortgage consultant on your side can make all the difference.
Here are a few factors to consider:
Locating the right lender
- Some mortgage lenders won't approve a mortgage if bankruptcy shows up on the credit report. However, some non-conforming lenders may consider doing so, provided the borrower can prove they have the income to support the payments.
The length of time since bankruptcy discharge
- Typically 2 years along with proof of re-established credit depending on the lender.
Reasons for bankruptcy
- If the bankruptcy was due to reasons beyond your control, this is more acceptable to some lenders than poor money management and excessive debt.
Size of down payment
- Most mortgage lenders will consider a minimum 10% down payment consisting of your own funds, not borrowed or from a gift.
Type of property
- Some mortgage lenders will only consider houses or townhouses, not apartments or condos.
If you would like to hear more factors or have any questions or comments, please don't hesitate to contact us.
For Vancouver Mortgage Broker related inquiries ~ 604 628 5040.
For Vancouver Luxury Realtor related inquiries ~ 604 566 8968.
Jessi Johnson Vancouver Mortgage Broker Vancouver Luxury Realtor