If your credit score is considered poor, several strategies could enhance your chances of getting approved for a mortgage. Increase Your Down Payment Typically, Canadian lenders require at least a 5% down payment, but this can differ based on the home’s price. If you have bad credit , you may need to put down more to qualify for a mortgage. Aim to save enough to make a 20% down payment. Providing proof of your savings and their source can signal to lenders that you are financially stable despite your credit issues. A larger down payment also reduces the lender’s risk in lending to you. For borrowers, a higher down payment means a smaller mortgage amount, and if you pay 20% or more, you likely won’t need to purchase mortgage default insurance. Consider Adding a Co-Borrower: You might increase your chances of approval by including a creditworthy co-borrower on your mortgage application. A co-borrower contributes their credit score and history, agreeing to...
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