Interest Rates Kitchener – Expert Mortgage
For a long time, it wasn’t possible to qualify for a mortgage in Canada if you had bad credit, and the market for subprime lending was almost nonexistent. In Canada, we deal mostly with large, regulated institutions with tighten lending standards. This is beginning to change, however, and smaller lenders have started to become popular as the traditional big banks stiffen up their regulations. Interest rates in Kitchener are directly related to your credit. If you have bad credit caused by debt and other past or present poor financial decisions, you will find it very difficult to not only be approved for a mortgage, but to get low interest rates in Kitchener. High credit balances can also significantly affect your credit score. As the market for subprime lending is growing, people with bad credit, or even no credit, can use a company like Expert Mortgage to help them find good interest rates in Kitchener tailored to their own personal circumstances. Read on for more information about interest rates in Kitchener.
Find out how to improve your credit here, and how this can benefit you with finding the lowest interest rates in Kitchener!
Know where you stand:
Your first stop on the path to a better mortgage deal is creating a baseline. You have to know where you stand in order to improve. Get started by having us run your credit report and get your credit score. If you already own a home and are interested in purchasing more properties, or are looking to remortgage, but don’t think that you will qualify, then contact us today!
Reduce the amount of debt you owe:
Reducing your debt is easier said than done, but it can be done! Reducing the amount that you owe on your debts such as credit cards and loans by consolidating will not only reduce your monthly costs, but it will also improve your credit score very quickly. Debt consolidation is a good way to bring all your debt together into one lump sum so that you can begin paying it all off with one payment on a specific term. Expert Mortgage can also assist clients with debt consolidation as a process with helping them eventually obtain the lowest possible interest rates in Kitchener.
“A” lenders and “B” lenders
You may already know about traditional lending institutions like, TD Bank, Scotiabank, and BMO. There are also large virtual mortgage houses such as First National, ING, and more. These lenders focus primarily on what is called in the industry, the prime lending market, and these are the “Big Banks.” These lenders focus on borrowers who have good jobs, credit, and are purchasing homes within the traditional guidelines. For borrowers that cannot qualify under the “A” guidelines, the next option is to try to fit within subprime lender’s guidelines better known as “B” lenders, and that is where Expert Mortgage comes in.
Most subprime lenders do not provide high-ratio mortgages (your down payment must be 20% or more of the purchase price of the home). These lenders charge a premium over traditional interest rates and usually do a much shorter term mortgage loans.
Unfortunately prime lenders are very strict when it comes to borrowers that have poor credit. Debts and minimum monthly payments are too high compared to income so month after month payments are neglected or missed. How can you pay off your debts if you cannot refinance due to your poor credit history? Many borrowers are facing a situation that unless they can refinance their house and use the equity to pay off their debt, they will never be able to catch up and reduce their monthly outgoing costs.
If you have a mortgage and have blemishes on your credit record and are looking to purchase another property, or if you need to re-mortgage to pay off bad debts, then consider the professional services of Expert Mortgage today. We will help you find a reasonable interest rate in the Kitchener area for your specific circumstances.
For more information about interest rates in Kitchener from Expert Mortgage, please feel free to continue browsing through our website. We can be reached at 1-844-397-3780 or by filling out our contact form.