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My Mortgage Blog

We all like options, and mortgages should be no different! 

Do you have a down payment, but have some past credit issues? How about excellent credit, but no down payment? If the answer is yes, read on! You could become a homeowner faster than you think!

Scenario 1: Bruised or blemished credit history...BUT, you have saved a significant down payment.

Bruises or blemishes go something like this: 

  • Discharged from bankruptcy or consumer proposal with re-established credit
  • An account that has fallen into collections
  • Late or missed payments on credit account(s) 
  • Low beacon score (this is the score on the credit bureau)
  • Maintenance enforcement (child support) judgement of arrears on your credit bureau 
  • High debt load (which may not technically be a blemish, but may disqualify you for a mortgage with some lenders

P.S. - Significant down payment = 20% or more of the home purchase price. 

It is possible with credit bruises or blemishes that you may still qualify for a mortgage if you have made strides to improve your credit and saved a significant down payment from your own resources. It is worth having a discussion and review of your situation - and possibly save you money on future rent!

Scenario 2: Excellent credit history...BUT, you do not have a down payment.

Other options for a down payment could include:

  • Down payment assistance program (depending on your geographical area for availability and eligibility criteria)
  • Flex down (borrowed down payment from a loan or line of credit)
  • Gift from family member (hello Mom & Dad!)
  • RRSP loan 
  • Cash back 

One of the above down payment options may help you save money on rent by investing it each month into your mortgage instead!

Are there other qualifying factors? 

Yes, both scenarios are still subject to other qualifying factors such as debt ratios, income, employment, qualifying rate, etc. 

Let's talk!

Did you know, I work on mortgages across Canada and my services are of no cost to you on typical residential mortgages? And I always love to hear from you, even if it's just to chat and see where you stand. 

sarahnm@mortgagegroup.com 
Toll free! 1 (844) 315-6609
Local: (902) 225-7077