Homeowners in Ontario, especially in Toronto, are amongst the most highly taxed in the country. These taxes in combination with rising gas prices and ever-present inflation have made it increasingly difficult for the middle class homeowner to make ends meet.
To make matters worse, the Federal Government has tightened its mortgage lending guidelines across Canada and the Bank of Canada has made a number of quarter point increases to the national lending rate.
The economy in Ontario is steadily improving but a number of Canadians are coming out of the recession with bruised credit. The automotive manufacturing industry has endured mass layoffs, as have the supporting industries that supply the automotive manufacturing sector. They are not alone; many service sectors like the financial services sector have suffered similar circumstances.
Those who have bad credit have fewer choices when it comes to bad credit refinancing but that doesn’t mean that it’s not available.
Bad credit refinancing is available to homeowners in Ontario. It can be a good choice for families who need to consolidate debt, cover the costs of home improvements or pay for their children’s education.
If you are considering pursuing bad credit refinancing, you will have more negotiating power if you thoroughly understand the current state of your credit and financial profile, thereby knowing what value you present to a prospective borrower.
You can do this by obtaining your credit report to see your credit score. It may not be as bad as you think. Most banks require a minimum credit score in of 680 before they will consider an applicant for credit. CMHC will approve high ratio insurance for an individual with a credit score of as little as 620 if they have not had any late payments in the past 3-4 years and are free of bad debt.
Trust Companies, credit unions and mortgage investment corporations all offer CMHC insured mortgage refinancing to individuals who have credit scores that are above 620 but less than the banks minimum of 680.
If your credit score was 670, then you may want to consider strengthening it somewhat so that you can qualify for a mortgage that is financed by the bank. A mortgage financed by the bank is always a more desirable option because they are able to offer the lowest, discounted mortgage rates.
Whether you want a mortgage financed by the bank, a trust company, finance company or private equity lender, you will score the best deal by going through a mortgage broker. A mortgage broker can look at your credit application and let you know exactly what type of credit products you qualify for. For more information visit http://www.gtamortgagematters.com/
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