More than one in eight adult Canadians will declare bankruptcy or negotiate a debt settlement – consumer proposal – with creditors. That’s a lot of people with devastated credit.
The majority of those people will want a mortgage at some point, but they’ll find their options are limited. Following the credit crisis, funding shrank for high-risk mortgages, causing more than a dozen subprime lenders to close their doors in Canada.
Nowadays, riskier homebuyers with subprime (aka non-prime) credit make up less than 5% of borrowers. And with a shaky housing landscape and nervous regulators, lenders are more careful than ever.
For credit-challenged homebuyers, getting the best mortgage isn’t easy – it requires discipline and planning.
Click here for what you need to know if you’ve recently gone through a bankruptcy or consumer proposal, a deal with creditors to pay less than you owe, courtesy of the Globe and Mail.
Questions on getting the best mortgage? Contact The Angela Calla Mortgage Team directly at 604-802-3983 or firstname.lastname@example.org