Bruised Credit

Bruised Credit

Many Canadians face hard financial times at some point throughout their life.

Dealing with bruised credit is not always easy when applying for a mortgage. If you find yourself facing difficult financial situations Bax Mortgage is here to help. Whether it’s recovering from a bankruptcy, job loss or dealing with the financial burden of a major health issue- we will guide you through it.

"Bruised credit" typically means your credit isn’t terrible, but you’ve had some issues such as falling behind on payments, maxed out credit limits, or collections, resulting in a low credit score.

This means that lenders will see you as higher risk but still entertain approving a mortgage for you. Below are some different lender options:

B-Lender (Alternative Lender):

1. • Specialize in helping borrowers with lower credit scores or unique situations.
   • Require a bigger down payment (often 20–25%, depending on location).
   • Interest rates are higher, and amortization length can be extended.
   • Associated costs such a lender fees and broker fees.

Private Lenders:

1. • Willing to work with almost any credit score.
   • Require substantial equity or down payment (25% or more).
   • Typically interest only payments and 1 year term.
   • High interest rates and fees.

Having a mortgage with either a B-lender or private lender are meant to be short term and help you through your financial struggle. Our team at Bax Mortgage will help coach you and setup an exit strategy to get you back to a traditional bank or monoline lender.

Speak with one of our agents today to help get you started on the path to financial recovery and take control of your finances.