Mortgages with Bad Credit
How to get approved when your credit has taken hits — and how to rebuild from there.
What 'bad credit' actually means to a lender
Lenders look at three things: your beacon score, your payment history depth, and recent derogatory events (collections, late payments, bankruptcy, consumer proposal). Scores under 600 generally close most A-lenders; under 550 closes most B-lenders too. Below that, private lenders look at equity instead.
Where to find approval at each credit tier
Beacon 680+: most A-lenders open. 620–680: select A-lenders and most B-lenders. 550–620: B-lenders with stronger story or larger down payment. Below 550: private lenders with 25%+ equity.
Bankruptcy and consumer proposal seasoning
Most A-lenders require 2 years discharged with re-established credit. B-lenders often work with 1-year discharged or even active consumer proposals. Private lenders look at equity regardless of discharge status.
Rebuilding credit while you hold a B-lender mortgage
The 1- or 2-year term on a B-lender mortgage is your runway to repair credit: pay every bill on time, keep credit-card utilization under 30%, don't open multiple new credit accounts, and pull your credit report 6 months before renewal to address any errors.
Moving back to A-lender pricing
Once credit clears 660+ and 1–2 years of clean payment history is established, refinancing back to A-lender pricing typically saves $200–$500 monthly on a typical Ontario mortgage. Jay re-shops every B-lender file at renewal to capture those savings.
Have questions about your situation?
Every mortgage file has its own story. A 15-minute call with Jay is enough to know your real options.