1-877-744-3436 Apply Now
Refinance Mortgage Bad Credit BC

Refinance Mortgage with Bad Credit

By | Blog, Home Equity Loan, Refinance Mortgage Bad Credit | 2 Comments

Refinance your mortgage with bad credit

Refinancing your mortgage with bad credit can help you consolidate debt and lower your current monthly payments on all debts. As well by consolidating debts this can help you improve your credit score.

When looking to refinance your mortgage with bad credit you have a few options available to you. Weighing out these options can help you best determine your maximum savings on refinancing your mortgage & loans.

Refinancing with your bank

The first stop on your way to refinancing is generally the current bank you are with. This may become difficult depending on what institution you use in Canada. Banks are required to underwrite mortgages on B20 risk guidelines. These guidelines require credit & debt servicing ratios along with a qualifying rate which can disqualify borrowers that may have qualified a year ago.

Refinancing with a B-Mortgage Lender

If you are close to renewal of your 1st mortgage and have bad credit a B-Lender has products enabling home owners to consolidate debts with lower credit scores and income types. Rates are higher than conventional mortgage lenders like banks but where banks fall short B-Lenders fill a gap. Generally, B-Lenders are used for shorter terms like 2 or 3 years.

Refinancing with a Home Equity Lender or Private Lender

Home equity lenders allow home owners with enough home equity to refinance their mortgage with bad credit.  Equity lenders provide 1st, 2nd & 3rd mortgages to home owners in BC regardless of their credit rating.

Home equity loans in some cases can be a cheaper alternative than refinancing your entire mortgage. Home equity lenders offer Second Mortgages, and, in most circumstances, this is a far cheaper alternative than refinancing a bad credit mortgage as a 1st Mortgage.

When holding a 1st mortgage you have qualified for this mortgage at a great rate. In a market where rates are going up it is usually better to hold most of the mortgage at the best rate possible and obtain a 2nd mortgage to consolidate all the bad credit & other debts.

The uses of a blended rate calculator can help you determine savings.

 

Can I get a home equity loan with

12 Can You Get A Home Equity Loan Questions

By | Blog, Home Equity Loan | No Comments

British Columbia Can You Get A Home Equity Loan

Can you get a home equity loan with Bad Credit?

Yes, you can get a home equity loan with bad credit. You are not going to get a low rate from a bank, however.

A bad credit home equity loan will however help you improve your credit score by paying down your outstanding debt to zero. It will also significantly improve your cash flow. Credit cards and other loans are usually amortized reflecting in a higher payment. Typically, home equity loan payments are interest only giving you a lower payment and better cash flow.

Can you get a home equity loan with low income or no job?

Yes, you can get a home equity loan even without a job or if your income is to low for bank guidelines.

People often loose or switch employment during the term of a mortgage. This can leave you strapped for cash to make your monthly obligations. Low income can also be a hurdle for banks but not for a home equity lender. If your self employed or have unverifiable income an equity mortgage loan might be the answer.

Can I get a home equity loan if I am self employed?

Yes you can get a home equity loan if your self employed.

This is one of the most popular mortgage products for self employed. Many times the self employed have several right offs that affect what they can show for income.

Can you get a home equity loan without an appraisal?

Yes, you can get a home equity loan without an appraisal.

Usually only if the loan to value if very low. Most home equity loans will require an appraisal, especially if the loan to value is over 50%. Not wanting to pay the price for an appraisal will also limit the amount of home equity lenders that will consider your application.

Can you get a home equity loan without a spouse signing?

You can get a home equity loan without the other person on title. Its called a half interest home equity loan.

Tenants in common allow a home owner to borrow on their half interest of the home. Generally, lenders will go to 50% to 60% of that persons half interest.

Can I get a copy of my Appraisal from a home equity loan?

Yes, you can get a copy of the appraisal from your home equity loan.

This can be provided to you after the financing has been completed and the lender and the use of the report has been transmitted. Appraisers only offer one free transmittal of the use of the appraisal so providing you the appraisal prior to this leaves the report useless without paying additional costs.

Can I get a home equity loan on raw land?  

You can certainly get a home equity loan on raw land. Many considerations would be address like where the property is located and the size of the property. Most lenders will lend to 50% to 60% of the lands value.

Can I get a home equity loan in foreclosure?

Yes, you can get a home equity loan if you’re in foreclosure.

A home equity loan is the only mortgage financing for you if your home is in foreclosure. A equity loan works as either a new 1st mortgage to payout your current mortgage lender or as a 2nd mortgage that will bring your current mortgage up to date and back into good standing.

Can I get a home equity loan in a bankruptcy?

Yes, you can get a home equity loan while in bankruptcy however you are usually required by the bankruptcy trusty to payout the bankruptcy with the funds. This is a great way to put an end period to your bankruptcy and enables you to start fresh re-establishing your credit.

Can I get a home equity loan in a consumer proposal?

Yes, you can get a home equity loan while in a consumer proposal.

In some cases, you can leave the proposal in place other the proposal will be required to be paid out with proceeds of the mortgage.

Can I get a home equity loan with no fees?

To obtain a home equity loan with no fees is not possible. Even if someone arranged the loan without charging you any money (which is unlikely) you would still be hit with legal fees, registration costs and possibly appraisal fees.

Can I get a home equity loan with no credit check?

You could get a home equity loan without a credit check. Although most lenders do require a credit check as part of their standard underwriting process.

Do You Need Good Credit to Get a Home Equity Loan?

By | Blog, Home Equity Loan, How To...., Mortgage Solutions | No Comments

Do You Need Good Credit to Get a Home Equity Loan?

You don’t need good credit to get a home equity loan. However, you will need good credit to get a lower rate home equity loan. The very essence of a home equity loan is home equity.

 

How Much Can I borrow Using A Home Equity Loan?

Borrowers can use up to 75% of their home’s equity through an alternative mortgage lender. If you are looking for a HELOC then the maximums 65%.

 

What are the disadvantages of a HELOC rather than a Home Equity Loan?

HELOC do have some disadvantages like credit and debt servicing ratios. This can significantly reduce the amount of HELOC you qualify for.

 

What are the advantages of a Home Equity Loan over HELOC?

A home equity loan is approved on home equity not your income or credit. This may allow a home owner to qualify up to 75% of your homes value regardless of income or credit.

 

Are there costs savings of a HELOC rather than a Home Equity Loan?

HELOC are the cheapest product allowing home owners to obtain rates as low as Prime + .5%. The legal registration of a HELOC is also less. Usually under a thousand dollars for registering and appraising the property.

Home Equity Loans costs however are much higher. Rates can start as low as Prime + 4.55% and up. Additionally, there are higher legal costs and broker or lender fees associated with the financing.

Your BC Mortgage Broker Has More Information on HELOC’s or a Home Equity Loan. Call today