Bad Credit Mortgages
Bad Credit Mortgages in Ontario and Across Canada
Declined by your bank because of your credit? You still have options. Our lenders approve based on the equity in your home, not your credit score, so homeowners with bruised credit can often still get the financing they need.
Get Approved Nowor call 1-855-668-3074
A bad credit mortgage is home financing arranged through alternative and private lenders who approve based on your home equity rather than your credit score or income. For Ontario and Canadian homeowners who have been turned down by a bank, it provides a way to consolidate debt, clear arrears, or stop a power of sale, with total borrowing capped at 80% of your home's value and full terms set out in writing before you commit.
When the Bank Says No to Bad Credit
Banks score you against rigid rules, and a credit score that has slipped is one of the fastest ways to an automatic decline, even when you own your home and can clearly manage a payment. A single rough year, a past consumer proposal, or a stretch of missed payments can outweigh everything else in their model.
The lenders we work with take the opposite view. They look at the equity in your property first, because that equity secures the loan, which means your credit score carries far less weight. That is why a homeowner the bank turned away can often still get approved. A bad credit mortgage may fit if you:
- Have a credit score below 600 or a thin credit history
- Were declined at refinance or renewal
- Are behind on your mortgage or in arrears
- Owe property taxes or have a CRA debt
- Have a recent consumer proposal or bankruptcy
- Are facing a power of sale and need to act quickly
- Want to consolidate high-interest debt into one lower payment
How a Bad Credit Mortgage Works
Approval rests on your home, not a credit report. As long as your total mortgages stay within 80% of the property's value, the equity you have built is what makes the financing possible. You can take it as a second mortgage, a home equity loan, or a refinance, depending on your situation.
For homeowners with little or no current income, payments can be prepaid into the loan for up to 12 months, so there are no monthly payments during that period while you get back on your feet. The funds are commonly used to consolidate debt, stop a power of sale, or clear property tax arrears and CRA debt.
These mortgages are usually short term, often one to two years. The plan is to stabilize your finances, then transition back to a traditional lender once your credit and income recover, or sell if that becomes the right move. We map out that exit with you before you borrow, and you can read how home equity borrowing works at the Financial Consumer Agency of Canada.
What Counts as Bad Credit in Canada
Canadian credit scores run from 300 to 900. There is no official line for bad credit, but most banks get cautious below the mid 600s and decline outright in the 500s. Here is how the ranges generally break down.
Ranges vary slightly between Equifax and TransUnion, and every lender sets its own thresholds.
How to Get Approved With Bad Credit
- Talk to a broker who specializes in equity lending, not your bank.
- Confirm how much equity you have using our home equity calculator.
- Choose the product that fits, such as a second mortgage, a home equity line of credit, or a refinance.
- Provide a few basics: property details, your current mortgage statement, and ID.
- Review your written terms and full Cost of Credit Disclosure before you sign anything.
- Use the term to rebuild your credit and work toward your exit.
Find Out If You Qualify
Bad credit does not have to stop you. We will review your situation honestly and explain your options, with no obligation.
Get Approved Nowor call 1-855-668-3074
Bad Credit Mortgage FAQs
Can I get a mortgage with bad credit in Ontario?
Yes. Banks weigh your credit score heavily, but the alternative and private lenders we work with approve based on the equity in your home. If you own a property with enough equity, you can often get financing after a bank has declined you, anywhere in Ontario and across most of Canada.
What credit score do I need for a bad credit mortgage in Canada?
There is no single cutoff. Many of our lenders approve homeowners with scores well below 600, and some look past credit almost entirely when there is solid equity. Approval rests on your home's value far more than on a number.
How much can I borrow with bad credit?
Borrowing is based on your home's value, not your credit score. Total mortgages against the property are capped at 80% of its value, and the equity you have built within that limit determines how much you can access.
Do I need a job or income to qualify?
Not always. Because approval is equity-based, income is not the deciding factor. For homeowners with little or no current income, payments can be prepaid into the loan for up to 12 months, so there are no monthly payments during that period while you stabilize.
Will a bad credit mortgage make my credit worse?
It should not, and it often helps. Many homeowners use these short-term mortgages to pay off high-interest debt and catch up on arrears, which can support credit recovery over time. Making your new payments on schedule is what matters most.
How long does approval take?
Equity-based files usually move faster than a bank, because the focus is your property rather than a long credit review. The exact timing depends on your situation and the property, which we go over with you up front.
A Bank Decline Is Not the End of the Road
If you own your home and have built up equity, you have more options than the bank let on. Let us show you what you qualify for.
Get Approved Nowor call 1-855-668-3074