You still have options for getting second mortgage with your bad credit but check your pocket again.

In Canada, if you have a good credit, you could borrow up to 90% of your home value and enjoy low rate of about 6.50% for 1 year term. For damaged credit you will pay over 10% and up to 14.75% for 100% financing (100% financing means that you borrow up to 100% of your appraised value less your 1st mortgage balance).

In general, it really depends where you actually fit in. If your credit is good you’ll get a good rate, but if your credit is poor then be prepared to pay a higher rate. If your credit is really bad then you may be looking at private lenders with rates around 15% and may be limited to maximum 85% of your home value or less, minus 1st mortgage balance.

If your credit score is bad, your best bet can be the bank that you have the most money at. Also, some banks, like Charter one, exist in both the US and Canada, so that helps. You can also find out from the local agent if GMAC underwrites mortgages in Canada, but they don’t use government money so you can often get a deal with them, too.

Mortgage brokers are probably your only choice right now. Others have given you those links. It is recommended that you wait for a while. Think about it very seriously before taking on more debt. Better to fix your credit rating first.

Spend some time first sorting out your finances and paying off some of your debt. In many communities and cities you can get credit counselling for free. Focus on paying off the highest interest debt first. Begin to save some money for a down payment. Do a budget and cut out all unnecessary spending – even Tim Hortons!

If at all possible wait until you can be approved for a bank mortgage. Otherwise you will probably have to pay very high interest rates, which will just make your financial situation worse.

Further, you can try this company “mortgage intelligence”. Look them up on yahoo.ca


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