When you don’t have the best credit history you may believe that buying a home, instead of renting, is out of reach and will be something you can never achieve. If you are having troubles buying a home due to bad credit, here’s how you can secure a bad credit mortgage.


When you have bad credit, an unstable employment history will only increase a lender’s hesitation to give you a mortgage. Finding stable employment with a steady income is really important for getting a mortgage, especially since a major part of a mortgage qualification is going to be your ability to make your payments.

Save a bigger down payment

You may be thinking it was hard enough to save for the down payment you do have, especially with the cost of living rising almost daily it seems. Having a larger down payment however will help you to secure your financing, and it’s a sign that you’re working towards improving your finances – which is a good sign for lenders. As an added benefit, having a larger amount of money down when you buy your home means you need to borrow less money and you may even have a lower mortgage payment amount each month.

Work on your credit score

Just because you are getting a bad credit mortgage right now, it doesn’t mean you will always have to worry about that. The better your credit is when you go to get your mortgage, the lower your interest rate could be and the better terms you may receive. You may also be able to qualify for a higher rate with a prime lender instead of a subprime one.

Do what you can to work on your credit score and start rebuilding your credit score.

Consider private lenders

If waiting until you have a bigger down payment or until your credit score is rebuilt isn’t an option, then you may want to consider looking into a private mortgage. With a private lender you may pay a higher interest rate or need to have a slightly higher down payment, but it will allow you to buy a home, and when renewal time comes you may have improved your credit and have enough equity to qualify for a mortgage with a prime mortgage lender.

Contact us today

If you are looking to get a bad credit mortgage, we can help. Contact us today to speak to a broker.

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