Mortgage lenders for Bad Credit and Refinancing

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For a long time, it wasn’t possible to qualify for a mortgage in Canada if you had bad credit. The subprime lending market, so popular in the United States, was almost nonexistent in Canada. Why? In the United States, customers can choose to deal with any number of large and small banks. In Canada, we deal mostly with large, regulated institutions. Things are starting to change here, though. Smaller lenders are beginning to relax their standards and become more popular even as the traditional big banks tighten their standards. The relatively small market for subprime lending is growing, as it once did in America. Now, if you have bad credit, you actually stand a chance of getting a mortgage in Canada.

How do you qualify for a mortgage in Canada if you don’t have good credit? You probably still are going to be rejected by the big banks, because your mortgage application won’t qualify for CMHC insurance. You can still try to go through a big bank. And if you do by some chance qualify for a mortgage through one of the big banks, you should consider accepting it, since the big Canadian banks are more likely to give you friendly mortgage terms and pursue a long-term relationship with you as a customer.

If you are rejected by the big banks, you will need to find a subprime lender, also called an alta- or near-prime Mortgage Lenders in Toronto for Bad Creditlender, or alternative mortgage lender. There are a lot of reasons you might need a bad credit mortgage lender in Canada. Maybe you only recently moved into the country, or perhaps you are young, self-employed, or simply have no built up a credit history. You might have had a recent misfortune, and are now back on your feet. Regardless, not everybody wants to wait to purchase a house until their credit is back to normal. A lot of subprime mortgage lending is actually prime mortgage lending that isn’t qualifying for one reason or another. If that describes your situation, you could be a perfect lending candidate.

There are a number of popular online bad credit mortgage lenders in Canada and we’ll try to do a comparison for each of them below. It’s really hard to look for bad credit mortgage lenders in Canada, but there are some, which are listed below.

Premiere Home Mortgage Ltd.

  • Offers mortgage funding for properties located only in British Columbia, Alberta and Manitoba
  • Two day approval
  • They have an online mortgage calculator to help you decide
  • Up to 85% appraisal

FamilyLending Inc.

  • 5% down payment (the higher, the better)
  • Need proof of income to get eligible

Canadian Mortgage Finder

  • 10 year term for only 3.89% interest
  • BenchMark rate: 5.24%
  • Prime rate: 3.00%
  • Variable rate: 2.65%

Canada Wide Financial Inc.

  • No income verification
  • No credit or bad credit accepted
  • BBB accredited

Mortgage Brokers in Canada

One of the easiest ways to find a subprime lender who is willing to work with you, regardless of your credit, is to go through a mortgage broker. Mortgage brokers can send your information to dozens of different lenders, banks, and investors to find a match. They offer a number of services, such as loan preapprovals, often with no added cost or obligation. On mortgage broker websites, you can view current rates, and run calculations to see how much house you can afford.

Steps to Getting a Bad Credit Mortgage in Canada

  1. First, check your credit report to make sure that it is accurate. You don’t want to be punished for something that isn’t correct. If you spot any discrepancies, submit the corrections and proof and see if you can boost your score. Have explanations ready for the mortgage broker and any interested lenders who are curious about why your credit is so low. Good explanations include unavoidable life crises such as major illnesses or sudden, unpredictable unemployment.
  2. Be prepared to pay a slightly higher interest rate. Bad credit mortgages are never going to be as competitive as good credit mortgages. The terms of your loan will be harsher. It is important to shop around to make sure you are getting the lowest rates. Beware of adjustable mortgage rates; they may start low, but they typically balloon and become unaffordable (this was how the U.S. housing crash began). Likewise, be aware you may be asked to make a higher down payment. The more you are able to put down, the more likely you are to secure a good mortgage, despite your bad credit.
  3. Prove you have a steady, reliable income. If you don’t, you probably shouldn’t be looking for a mortgage anyway. This is really the most important aspect of your application. While subprime lenders in the U.S. often were not as concerned about this, Canadian lenders are. They know that you might have bad credit because of something your past, but that you may have a steady income in the present and a positive outlook for the future. That makes you a viable investment.
  4. Make sure that all your other debts are paid off, or that you can handle them alongside your mortgage without any trouble. This includes student loans, car loans, and so on.

Make Smart Life Choices – Buy What You Can Afford

While it should go without saying, it is important to make sure that you really can afford the house that you are planning to buy. In the United States, many buyers who could not really afford their homes took advantage of the low adjustable mortgage rates they were offered by subprime lenders. When those rates increased later, they fell behind on their payments, and went into foreclosure. That was how the housing bubble burst.

Is Canada in that kind of danger? Not immediately, most experts say. The reason is that even subprime lenders in Canada still have higher standards and regulations than many U.S. lenders did. They are not likely to approve you if you really cannot afford a home. It isn’t just your credit that they are looking at, but your viability overall. But this is the kind of environment where less reputable brokers may start to gain a foothold.

Does that mean you should avoid getting a subprime mortgage? Not at all. Do your math and consider all of your monthly debts (not just your bills, but also other costs associated with living), and think about your income. Is it steady enough and substantial enough to support a mortgage? What interest rate can you afford? Understand your means, and then shop within those means. Go through a mortgage broker to secure the best deal that you can. And if you don’t feel ready yet to buy a home, there is nothing wrong with waiting to build up your credit rating for a bit and making sure that you’re on stable financial ground first.

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  1. My husband and I are looking for a loan for down payment and a mortgage broker to get our family a home and fast we have to be out by end of June we have bad credit but make decent money can u help

  2. Hi Candy, Are you based in Canada? If so you can apply on our site.

  3. We have 5% down payment. My wife has no credit reporting as she is from Thailand and has been here just 4 years. I have some small blemishes (2) on my credit report. However we need a mortgage for approximately $90,000. here in Edmonton.
    Can you make this possible???….Thank You

  4. Hi, our site – Bad Credit Loans – doesn’t provide the mortgage but you can look for a mortgage broker/lender via our site who is likely to help you out. If you go to and look at the link on the right hand side there will be a link for mortgage brokers. Just click on that and you should be able to get some assistance. Good luck Miriam

  5. My fiance and I are looking to buy our first house. Do you have any idea how much would we need to prove we make to get a mortgage for a $200,00? Assuming it’s at the average rate of interest your lenders charge as of today?

  6. karen hoffmeyer July 11, 2014, 3:26 pm

    we own our home paid in full would like to borrow 15000 on it

  7. Hi
    I would suggest clicking through to our loan provider links from our homepage. They may be able to provide you with a loan from the equity on your home.

    Good luck, Miriam

  8. Looking for help to get into rent to own program – need loan for downpayment – can anyone out there help? No scammers, upfront fees please. Only those who can genuinely help PLEASE.

  9. Between my daughter and myself we make $60,000.00 a year. But my credit isn’t the best (company put 2 bills against me for the same thing, exact same invoice# and amount)(credit card I tore up and never used with “0″ balance) I have $5000. For down payment. Is all of this going to stop me from qualifying for a mortgage? Thank you for helping!

  10. Hi Char

    Lenders will look at your credit score so if this has been effected it could. I would go to our mortgage broker section and get in touch with one of the providers via our links. They may be able to assist you – having some upfront capital, a steady job, etc will help. Thanks Miriam

  11. I see home for 167,000. I do not have a down payment plus I have bad credit. I do have a good job. Please help

  12. Please get in touch with one of our loan providers via the links. They can try to help you with your needs, Miriam

  13. I just got discharge on my consumer proposal last august 2013, and I want to apply for a mortgage and planning to buy a house, I have a full time job for 7 years now its a steady income and im only making 28000 to 30000 a year. Is there any company who can help me get a mortgage? I saw a townhouse in zoocasa on sale and it’s 159,000. Is there a lender who can help. thank you and appreciate your reply.

  14. Hi Mary,

    Thanks for getting in touch. You should try to get in touch with one of your lending partners that you can access through the links on our site. If you visit – – and click on some of our partner links, you can provide this information and they can advise on assisting you with a mortgage.
    Good luck, Miriam

  15. We already own a home worth 258,000 and put it up for sale. We wanted to go smaller and less money, however I was told that although our credit was good, we owed alot (line of credit) so they would not give us a mortgage, can you guys help?

  16. Hi Kim,

    Have you looked at the mortgage page of our website? This could like you to a mortgage lender who may be able to help. If you have good credit and own a home they should be able to do something for you.

    Good luck & let us know how it goes, Miriam

  17. I have a question. My credit score is between 550 and 600. I have questionable credit score and I came into a few dollars and was thinking about buying a condo. Would it be better to pay off my credit cards first then apply or apply with the idea of putting the cards on the mortgage. I am looking of something in the range of $190,000 to $290,000. If it was say $290,000 I would be able to put at least 10% down. If it’s $190,000 then I could put at least 17% and still have emergency money left over.

  18. Hi

    We would always recommend you pay off outstanding debt first as this will help your credit rating and give you a better sense of your total disposable income.

    Thanks, Miriam

  19. Do you know any of these lenders do business in Quebec?

  20. Would it make sense to borrow money with you guys so we can settle some of our debts faster? My husband’s score is 560 and mine around 580. We had $14,000 in savings and put it as down payment on a $290,000 house. A mortgage agent got us a private mortgage at interest of 12% but $5000 of our savings had to pay lawyers. So ended up doing rent to own instead because it didn’t cost us anything and payments manageable so we can live and cover off debts. I just want to see if we can get rid of debt faster if we borrow money from you guys and what’s the cost.

  21. Hi! I could have sworn I’ve been to this websdite before
    but after going through a few of the articles I realized it’s
    new to me. Nonetheless, I’m certainly pleased I came across
    it and I’ll be book-marking it and checking back frequently!

  22. Hi

    Bad Credit Loans doesn’t lend money but we provide you with links to companies that can help. I would recommend visiting our debt consolidation links on the following page – If you enter your email one of our partner advisors will get in touch with you to help you with your needs. Thanks, Miriam

  23. Hello Kato,
    Most of our loan specialists can offer assistance across the country – if they aren’t able to help they normally can provide you with a referral. I recommend checking out – Please use one of the links there to apply for a loan and specify that you are looking for one in PQ. Good luck, Miriam

  24. I would like to get some information on a Rent To Own. I have a house in mind, but I have outstanding student loan that I am faithfully paying on. I sthere any way that I can add this to my mortgage?

  25. Hi

    I would suggest speaking to a mortgage broker to find out more about rent-to-own arrangements. I know that you need to have a good agreement in place to do this so that you are able to eventually buy the property. A mortgage broker (which you can find on our site), can help provide you with more information.

    Thanks & good luck, Miriam

  26. Hi, my husband and I are trying to qualify for our first mortgage. He makes $42,000 a year, I make $36,000 a year ( not salary) 2013 we got married and did some traveling so I didn’t earn my full potential and 2014 I went on medical leave due to having issues with my pregnancy. I still had income through manulife and made $23,000 though my job and $13,000 through manulife. My husband is from Australia and has an okay credit raring in Canada. I declared bankruptcy over 4 years ago and never established credit again. We have 5% of the loan we are hoping to get ($360,000) for our new house, a defence from our landlords re rent payment and letters from both our employers saying we have worked since 2011 (me) and 2009 ( husband) but have had no luck getting our mortgage. We have one credit card we pay off completely ever month, we own our 2003 jeep liberty out right. I have some family jewlery worth about 12,000 to 15000… Any suggestions?

  27. Hello,
    I would highly recommend that you get in touch with a mortgage broker. There are a few listed on – Since you have a down payment set aside as well as fairly positive credit behaviours, they should be able to help you. If they can’t help you, they can definitely offer you some suggestions so you can get on the right track, helping you get to home ownership sooner.

    Good luck & let us know how it goes, Miriam

  28. Hi,

    I am about to move to thunder bay ontario as a full time student. I would be taking osap, I was wondering is it possible for me to get a mortage for a home for around 150k instead of renting? I already have 5% for down payment.


  29. My fiancé and his brother hold a mortgage and it’s not smooth sailing. The mortgage is currently through a major bank. My fiancé cannot get a mortgage on his own and I am unfortunately not in a good enough credit standing for the bank to even look at me as a co signer. I’m wondering if there is an option through one of the websites wherein he could get a mortgage on his own. He does have an excellent income, $65,000. Thank you

  30. Hi

    Please get in touch with one of our mortgage brokers – they may be able to help you. You may need to provide proof of income so I would also think about having some sort of income flowing such as a part-time job. Good luck with the application process.

    Thanks, Miriam

  31. Hello,

    I’m sure that one of our lenders can help. Since he’s already been approved that is a good start – so is a good level of income. Hopefully his credit rating is good too.

    If you apply through the website, one of the lenders will be int ouch with you quickly to go through the application process.

    Good luck, Miriam

  32. Hi,

    My spouse and I are looking to buy a home in Atlantic Canada, and have been declined from a bank due to credit issues from several years ago (2011-2012)

    Our combined income is nearly as much as the cost of the house, but for me it is a new job (~6 months), but is indeterminate. Credit scores are 680 and 640.

    We already have the down payment, and it is not borrowed.

    Is this the type of situation one of your linked brokers might be able to help with?

    Thanks for your time!

  33. Hi we are looking to remortgage and consolidate. We both have full time jobs. And our credit is low

  34. Miriam Berman May 29, 2015, 8:05 pm

    Hi Candy,

    I would recommend contacting one of the brokers listed here – These brokers can help people of a variety of credit situations so I’m sure they can help you.
    Good luck, Miriam

  35. Miriam Berman May 29, 2015, 8:07 pm


    You sound like you’re in a good situation to get some help from a mortgage broker. I would recommend visiting – There are a range of lenders who you can contact on there who can help you. It is a shame that your credit score is low but at least since you have the down payment and have high income levels you will be in a better position than most.

    Good luck, Miriam :)

  36. I would like to buy a house with my daughter but both our credit scores are terribly low. Would we qualify for no downpayment on a house and a full mortgage.

  37. Hi Jay

    Thanks for your message. I would suggest that you apply online through the link – This is the same link you commented on. One of the lenders will look at a range of factors (including your credit rating). If you have a job with regular payments there is a chance you could qualify but you need to contact the lenders for these approvals.

    Good luck, Miriam

  38. Hi there was dicharged last sept from a cp thanks to a second mortgage looking for a tradional mortgage to put the to together credit score 613 wifes 618. Income 104000 yearly 80000 equity can i get a excellent rate thanks.

  39. hello! can you guys help us. we have a good and stable job. its been along time we wish we have a house. we have a bad credit thats why banks turn us down for a mortgage. we afford to pay rent of $1800 a month. please help us.

  40. Hi George,

    Have you tried reaching out to one of our mortgage brokers on this page? They often can help even if you don’t have the best credit score. Sounds like you have equity and you also have a decent amount of income coming in.
    Good luck, Miriam

  41. Hi Meann,

    Thanks for your message. Have you contacted any of the mortgage lenders on this page? They often can provide you with a loan where a bank may not. By clicking on one of the links, you can complete some information & the lender will ring you back.

    Thanks Miriam

  42. We just sold our house in Hamilton.Ontario. we are looking to buy in Brantford for 100,000. We have 20 percent down payment. The only thing is our house closes October 9 at which time we will be paying off our Credit Proposal. Are we able to qualify for a mortgage

  43. Hi, im looking to find out more about morgages for mpbile homes. My credit is really bad, i am a single mom of 2 special needs children, when i left the father i was stuck with all the debt, that was 7 yrs ago and have been struggling, i have a job ive been at for almost 2 yrs and am trying to get back on track. Currently we are renting from government housing and paying a small fortune every month to live here, plus living under very strict rules as to what we can and can not do. Im not sure if there is anyone out there that could help us, i would like to pay for something that someday i can say is mine

  44. Hi Annette

    Are you based in Canada? We only provide assistance for Canadian individuals. If you are Canadian, you may want to connect with of the lenders in the page you visited us from. There are a few links on there & someone can help you get the mortgage you need.
    Thanks Miriam

  45. Hi Susan

    There should be something that one of our lenders can do. I would recommend applying through the links on this page so someone can be in touch to assist you with your situation,

  46. I currently have a mini home I’d like to sell, but I’d like to be able to build my own place on private property, and consolidate my debts all in one go, but I’d be looking at a 200 000$ project once it’s done, with no down payment until my place is sold, is that something you guys can help with?

  47. Just finishing up paying off my debt consolidation and I’m looking on getting a mortgage. Do I need to wait at least 2 years AFTER I’ve paid off my consolidation before ANYONE looks at giving me a mortgage??

  48. Hi

    One of the mortgage brokers should be able to help you as it appears you have some equity behind you. Please apply through the site at one of the links.
    Thanks Miriam

  49. Hi Mike,

    Not necessarily – it’s worth applying and seeing if you are eligible. Just use one of the links on the site to get in touch with a mortgage broker.
    Good luck, Miriam

  50. I was looking for home financing for my sister, who has been living in Mississauga for 10 years . While looking for brokers we had heard about Brevity Capital through one of our friends. We visited their website and contacted their representative and thereafter we visited their office in Mississauga. They came up with rates that were quite acceptable, so we decided to enquire about all the procedures. It has been 2 months now, and we have finally decided to go with Brevity Capital for my sister’s financing. To be frank, their service is good & they explained everything we have to do to get financing. We can’t say it’s the best service company but it is surely a good one that is worth a try. No hidden charges.

    We had good experience with the company

  51. Thanks for sharing your experience, Miriam

  52. Hi, my husband and I Are currently paying off a consumer proposal that is set for 5 years. This is our first year. My husbands debts were mainly credit cards mine were mainly school loans. We both have really good jobs , together we make >110000 per year. Are we able to get a mortgage while on a proposal? Please help.

  53. My boyfriend and I want to buy a house but we r having trouble getting a down payment and have a couple car loans he is paying for one and I am paying for the other one but they are both in his name..just came across this website. ..just wonder where we can go from here…

  54. Hi Karelia, Thanks for your message. I would highly recommend getting in touch with a mortgage lender. If you have the income to support the loan & some money for the down payment, they should be able to help. There are some links to mortgage brokers on this page that could help.

    Thanks Miriam

  55. Hi Rhonda

    Do you have any RRSPs you can tap into? if you are a 1st time buyer you can take these out to go towards your down payment. Otherwise you will need to save up for the down payment. It’s always a good idea to connect with a mortgage broker so you can find out what they can offer you & if they can’t they can provide you with some suggestions that can help you out.
    I hope that helps, Miriam

  56. I just finished my consumers proposal 2 months ago and my credit score 521 the reason why i go thru this consumers proposal because i lost my full time job. my husband had an excellent score. Im permanent part time in a nursing home and my husband have full time and part time job. We are planning to buy a house worth 425k we have 30k for a down payment. can we be approved to have a home mortgage and to purchase a house?

  57. HI

    Have you gone to a bank to look into if you would get approved? It sounds like together with your husband you could have a good chance. If not I would suggest trying a mortgage broker. You can even get in touch with one of the ones we list on our site – I’m sure among this group, you will be able to get the loan you need,

  58. hi i have lived in canada for over 6 years, but my credit score is so low, i missed some payments and have a couple of collections, tho i need to buy a house, and have 70000 in my rrsp, i can use that as a down payment. am going to pay off all my collections, but wondered how long it takes to get a better credit rating? currently its 420

  59. My husband and I both have hurt our credit both around 600. Rebuilding – both government workers with 15+ years each in employment. We are wondering about getting a mortgage and getting out of paying rent.

  60. My fiance and I are looking to purchase out first home. He is now laid off for the winter and I just graduated. We have 5 kids between the 2 of us. We both have bad credit though so are not able to be approved for a mortgage but we have the money for a down payment due to inheritance. What can we do?

  61. My husband and I have 2 car loans wondering if there is a loan or a mortage company that we can combine those loans into the mortgage. So we are not making so many different payments. Or even a personal loan that would pay off both vehicles would make it easier

  62. Hi, my husband and I are trying to roll over a renovation mortgage that is killing us with interest. We had a great credit until we started this project now it is catching us in the butt. Is there a way to flip it into a new mortgage, with a higher interest of a normal mortgage but still affordable? We are going to loose everything we worked so hard at, at this rate.
    Any advice is appreciated.

  63. And we are using a mortgage broker who is failing us big time. They got us this mortgage told us to use all our credit up and get done everything is maxed out and they want major payments.

  64. Hi Janet

    Apologies for the delay – we had some issues with our comment feature on our site. Credit ratings are assessed every 6 months and it does take time. Just keep on track with paying off your debts and savings.

    I hope so, Miriam

  65. Hi Phil

    Apologies for the delay – we had some issues with our comment feature on our site. A score of 600 should be something a mortgage broker can work with. Check out our mortgage broker section and get in touch with one of the brokers we have listed there.

    Good luck, Miriam

  66. Hi

    Do you need a mortgage – i.e. how much money do you have saved? If you do need a mortgage, you’ll have to qualify. I would suggest seeing a mortgage broker as they may be able to provide you with some more options than a typical bank. Check out our mortgage broker area of the site to get more information on some brokers in the area.

    Thanks Miriam

  67. Hi

    Have you considered debt consolidation? Debt consolidation could help you lower your payments and simplify the process.

    I hope that helps, Miriam

  68. Hi Kim

    Thanks for your message & I’m sorry you’re in this situation. Have you gone back to the lender you got the loan with? Another option is to go to a mortgage broker to renegotiate the mortgage if that’s possible. You will want to get a lower interest rate as the market is very strong at the moment – especially if your credit is good. There should be a lot of options for you & hopefully you can pay off the debt quickly to restore your credit situation to where it was before.

    Good luck, Miriam

  69. Hi Kim

    OK – I’m so sorry you are having such a bad experience with the broker. That’s unfair. It is hard to comment as I don’t know the restrictions of your loan. Are you able to get out of it without penalty? Is it a fixed rate?

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