In recent years we have seen an increase in bankruptcy and consumer proposal in Canada. Although we have not reached the heights of some other nations is this area it is still a reality of the recession we find ourselves in. As household debt levels rise Canadian home owner find themselves in a position where they need to pay down debt or take out equity to support cash flow in the future. Banks are other major A lender (A lender is a mortgage lender who deals primary with income and good credit score applicants) are not interested in clients with bad credit scores, bankruptcy or consumer proposal.
There are however other options. Mortgage lenders such as Home Trust and Equitable Trust will finance these mortgages. There rates are still very competitive, usually 1.00% to 1.50% above regular discount rates. Considering we are in a very low interest rate environment, the interest rates are low. Applicants can take a 1 to 5 year option allowing them time to fix things on the credit side before moving back to a A lender.
If you are one of these clients please email or give me a call at 416 899-1467.