How Do Mortgage Brokers Deal With Bad Credit?

No one wants negative information to follow them around, especially when they’re looking for a new home. According to most reports, seven years after documentation of negative credit information is the standard frame of time before that information is removed.

While good information can last forever, good information isn’t what creditors and debt collectors are looking for. Equifax Canada and TransUnion Canada keep track of your debts according to different factors such as the type of debt (house, car, loan) and where you live.

So you’ve got some bad credit. Maybe you missed a payment some time in the last seven years or you’ve had to declare bankruptcy. Mistakes happen, we’ve all been there. Negative transactions are a reality for Canadians everywhere, but it’s what you do to move past those negative transactions that matters.

Well, maybe you don’t have time to wait for six or seven years. Here’s how a mortgage broker can help you get into a new property despite your past.


Understanding Habits

Taking action and looking for a new mortgage is a step toward the future, but’s also an an important key to recognizing the issues of your past.

  1. Have you spent beyond your means?
  2. Do you buy toys you don’t truly need?
  3. How good are you at planning budgets (& sticking with them)?


Mortgage brokers dealing with poor credit will first help you get a handle on what you can do better moving forward.


Planning for the Future

Following that, poor credit requires a specific plan in the years to come. Like we said above, it doesn’t disappear for awhile, so making payments on time and keeping your expenses in check is the only way to ride out the storm.

Mortgage brokers will use your past to create a plan with rates you can handle while simultaneously paying off your debts and improving your standing with Equinox and TransUnion.

Sometimes improving your credit is as simple as paying close attention to your bank accounts. Which account does your car loan come out of? From which account do you pay your bills? Doing a better job organizing yourself will go a long way toward keeping larger issues, such as lines of credit, secured loans and mortgage payments in check.
Looking for answers about your credit history? We can help, contact one of our agents today