Bad Credit Mortgages in Ontario & Canada
Bad Credit Mortgages for Homeowners the Banks Turned Down
If your credit score is keeping you from a mortgage, you still have options as long as you own a home. A bad credit mortgage from Turnedaway.ca is approved on your equity, not your credit score, so a low score, missed payments, or a recent decline do not have to be the end of the road. Learn more about home equity loans, second mortgages, and debt consolidation.
or call 1-855-668-3074
Approvals in as fast as 24 hours · No income or credit requirements · Financing from $25,000
Yes, you can get a bad credit mortgage in Canada if you own a home with equity. Equity-based lenders approve based on the value in your property rather than your credit score, which is why financing is often available even after missed payments, a recent decline, or a credit score in the 500s. Your home, not your credit report, does the qualifying.
300–900
The Canadian credit score range. Wherever you sit on it, your equity is what we lend against.
24 hrs
Typical approval window through Turnedaway.ca, versus weeks of back and forth at a bank.
80%
Maximum loan-to-value we arrange, leaving real equity protected as a buffer.
$25K
Financing available from, with no income or credit requirements to apply.
Credit score range per the Government of Canada.
Why a Bad Credit Mortgage Is Possible When the Bank Says No
Banks lean almost entirely on your credit score. One rough patch, a job loss, an illness, a separation, or a stretch of relying on credit cards, and a score can fall fast, even for someone who has owned their home for years. When that happens, the bank often declines at renewal or refuses additional financing, regardless of how much equity is sitting in the property.
Equity-based lending works differently. What matters most is the value in your home, not the marks on your credit report. That gives homeowners a path the banks simply do not offer, and many use it to consolidate debt, bring arrears current, and create the breathing room to rebuild. For an independent overview of how credit scores work and how to improve them, the Financial Consumer Agency of Canada is a helpful resource.
At Turnedaway.ca, we work with a wide network of alternative and private lenders, which is what allows us to arrange a bad credit mortgage for homeowners the banks have already declined.
How a Bad Credit Mortgage Works
Getting approved through Turnedaway.ca is straightforward, even with a low score or a recent decline. Here is what the process looks like from your first application through to funding.
Tell Us About Your Situation
Apply securely at apply.turnedaway.ca. Whether your credit took a recent hit or has been low for a while, we start with where you are today, not where your score was last year.
We Assess Your Equity
We review your home's value and existing mortgage to see how much room there is, staying within our 80% loan-to-value cap. Your credit score is not the deciding factor. Estimate your room with our home equity calculator.
We Match You to a Lender
We place you with a lender who funds based on equity, not credit, not just the banks that say no. An independent appraisal confirms your home's value.
Review Your Full Cost Disclosure
Every cost is laid out in a written Cost of Credit Disclosure before you sign anything, so there are no surprises. Your lawyer completes the legal work and registers the loan.
Close and Start Rebuilding
Consolidate debt, bring arrears current, and follow the exit plan we build to return to bank rates once your credit recovers. Most files close within 5 to 10 business days.
Who Qualifies for a Bad Credit Mortgage?
Approval is based primarily on the equity you have built up, not your credit score or employment status. Not sure how much equity you have? Use our home equity loan calculator to get an estimate.
Low or Damaged Credit Score
A score in the 500s, or even lower, does not disqualify you. With enough equity, we can often arrange financing regardless of your score.
Missed or Late Payments
A history of missed payments will not stop us from looking at your file the way the banks do.
Declined at Renewal
If your bank refused to renew your mortgage, an equity-based lender can step in so you keep your home.
Self-Employed
No income verification or tax returns required. Your property qualifies you, not your paystub or Notice of Assessment.
At Least 20% Equity in Your Home
Because all of our lending stays within an 80% loan-to-value cap, you need meaningful equity in the property.
Dealing With CRA Debts or Liens
Equity can clear CRA debts and liens that are blocking your other options.
or call 1-855-668-3074
How Much Can You Borrow?
The amount depends on your property's current value and the balance still owing on your mortgage. Turnedaway.ca does not arrange deals above 80% LTV, which protects you if property values decline. Here is a simple example for a homeowner with a low credit score.
Simple Example
| Detail | Amount |
|---|---|
| Estimated Property Value | $700,000 |
| Maximum LTV at 80% | $560,000 |
| Existing Mortgage Balance | $380,000 |
| Equity You Could Access | up to $180,000 |
Commonly used to consolidate debt, bring arrears current, or pay out a lien. Use our home equity loan calculator for a personalized estimate. Financing available from $25,000.
What Can You Use the Funds For?
Homeowners use a bad credit mortgage to take back control in several ways. These are the most common.
💼
Consolidate High-Interest Debt
Roll credit cards and loans into one lower payment by consolidating debt against your home.
🔄
Cover a Mortgage Renewal
If your bank declined your renewal because of credit, an equity-based lender can take its place.
🏛
Settle CRA debts and liens that block your other options before enforcement escalates.
🧱
Rebuild Your Credit
Clearing overdue balances and simplifying payments gives your credit room to recover over time.
Understanding Credit Score Ranges in Canada
Canadian credit scores run from 300 to 900. The table below is a general guide to how lenders tend to view each range. It is a reference only, since every lender sets its own thresholds. The key point for our clients: even in the lowest ranges, a bad credit mortgage based on equity is still possible.
| Score Range | Generally Considered | What It Often Means for a Mortgage |
|---|---|---|
| 760 to 900 | Excellent | Best access to bank rates and products |
| 725 to 759 | Very Good | Strong approval odds with most lenders |
| 660 to 724 | Good | Usually qualifies for standard financing |
| 560 to 659 | Fair | Banks may decline; equity-based options apply |
| 300 to 559 | Poor | Bank financing unlikely; equity is the path |
General guide only. For how scores are calculated, see the Government of Canada.
Our Commitment to Responsible Lending
It would be easy to promise the world to someone who feels out of options. We will not do that. Turnedaway.ca is a licensed mortgage brokerage, and our job is to give you honest guidance, not just a transaction.
We do not arrange financing above 80% loan-to-value, with no exceptions. Property values can fall, and when a homeowner is already in financial difficulty, taking them to the edge of their equity creates risk we are not willing to accept on their behalf. If your request goes over the limit, we will help you restructure it rather than stretch you thin. Every deal leaves meaningful equity in place as a buffer, with an exit strategy built in to move you back toward lower-cost financing.
For borrowers who have enough equity and a clear exit strategy, we can sometimes structure the loan so that several months of payments, in some cases up to 12, are prepaid from the loan proceeds. This is not available on every file. It depends on having sufficient room within our 80% cap and a realistic plan to return to conventional financing, and we will tell you honestly whether your situation supports it.
The full cost of any solution, including the interest rate, lender fee, broker fee, legal fees, and appraisal, is disclosed in writing through a formal Cost of Credit Disclosure for your specific deal before you commit.
or call 1-855-668-3074
Real Client Results
Every situation is different. Here are three examples of how Turnedaway.ca helped homeowners with damaged credit access their equity when traditional lenders said no.
Case Study 1 | Declined at Mortgage Renewal
Keeping a Home After a Bank Declined the Renewal
A Durham Region homeowner had several missed credit card and loan payments following a temporary job loss. Their credit score had fallen into the mid-500s, and their bank declined to renew their mortgage despite substantial equity. With a home valued at approximately $725,000 and a mortgage balance of approximately $410,000, an alternative mortgage solution was arranged using the home's equity while remaining below 80% loan-to-value.
Result: The homeowner avoided a forced sale, secured a new mortgage, and gained time to rebuild their credit and financial stability.
Case Study 2 | Debt Consolidation After Credit Problems
Replacing High-Interest Debt With One Manageable Payment
An Ontario homeowner accumulated significant credit card debt after relying on credit during a period of reduced income. Multiple late payments pushed their credit score below 600, making traditional financing unavailable. With a home valued at approximately $800,000 and a mortgage balance of approximately $450,000, equity was used to consolidate approximately $85,000 of unsecured debt while keeping total financing under 80% loan-to-value.
Result: The homeowner replaced several high-interest payments with one manageable payment and began rebuilding their credit profile.
Case Study 3 | Mortgage Arrears and Tax Arrears
Bringing Mortgage and Property Tax Arrears Current
A homeowner fell behind on both mortgage payments and property taxes following a separation. Their credit score had dropped into the low-500s, and they had been declined by their bank for additional financing. With a home valued at approximately $680,000 and a mortgage balance of approximately $340,000, equity financing was arranged to bring mortgage and tax arrears current while remaining below 80% loan-to-value.
Result: The homeowner avoided further collection action, brought all arrears up to date, and remained in their home while working toward improved credit.
or call 1-855-668-3074
Where We Serve
Turnedaway.ca helps homeowners with bad credit across Canada. The cities below represent areas we serve regularly, but they are not an exhaustive list. We work with homeowners in every province and territory with the exception of Quebec, Newfoundland, Yukon, the Northwest Territories, and Nunavut.
Financing available from $25,000. Call us at 1-855-668-3074 or get started online today.
Frequently Asked Questions About Bad Credit Mortgages
Can I get a mortgage with bad credit?
Yes, if you own a home with enough equity. A bad credit mortgage is approved on the equity in your property rather than your credit score, so a low score or recent missed payments do not automatically disqualify you.
What credit score do I need to qualify?
There is no minimum score. We have arranged financing for homeowners with scores in the 500s and lower. What matters is the equity in your home, capped at 80% of its value.
Do I need a job or income to qualify?
No income verification is required. Approval is based on your equity, not your paystub. For borrowers with enough equity and a clear exit strategy, we can sometimes structure the loan so that several months of payments, in some cases up to 12, are prepaid from the loan proceeds. This is not available on every file and depends on your situation.
Will applying hurt my credit score?
A single application has minimal impact, and because we focus on equity rather than credit, your score is not the deciding factor. Over time, consolidating debt and making consistent payments can help your credit recover.
How much can I borrow?
Total financing is capped at 80% of your home's value, less any existing mortgage. The exact amount depends on your property value and current financing. Estimate it with our home equity loan calculator.
My bank declined my renewal. Can you help?
Yes. A declined renewal is one of the most common reasons homeowners come to us. An equity-based lender can take over the mortgage so you keep your home while you rebuild.
What does a bad credit mortgage cost?
The full cost includes the interest rate, lender fee, broker fee, legal fees, and in most cases an appraisal. We provide a written Cost of Credit Disclosure before you commit, and we subsidize appraisal costs wherever possible. For a general overview, visit Canada.ca.
Can a bad credit mortgage help me rebuild my credit?
It can. Consolidating high-interest debt into one payment and bringing overdue accounts current gives your credit room to recover, which is the first step toward returning to bank rates.
How soon can I move back to a regular mortgage?
It depends on how quickly your credit recovers, but we build an exit plan into every file so you have a clear path to refinance back to conventional financing when you qualify.
How fast can I get approved?
Approvals are often available in as fast as 24 hours, with most files closing within 5 to 10 business days. Apply online to get started.
Get Approved for a Bad Credit Mortgage Today
If you own a home, a low credit score does not have to be the end of your options. Apply today and get a response within 24 hours, with no obligation and full transparency on cost.
Get Approved Nowor call 1-855-668-3074