For most people, the debt that they take on when they sign a mortgage is the largest amount they will owe anyone. It is a loan that often takes between 15 and 30 years to pay off in most cases, and securing approval and underwriting for this financing is often the most stressful part of the process of buying a house.

Taking out a BC Mortgage Loan

If this is your first time to explore BC mortgage loans, you should know that banks and other traditional lenders use your credit score, your income history and the amount of money you have as an available down payment as their primary metrics for deciding whether or not to extend you credit — and at which interest rate to extend it.

If your credit score is in the “good” or “excellent” range, and if you have several years of verifiable income history in a range that will fund your mortgage payment each month within the debt-to-income ratio guidelines, and if you have the right down payment ready to go (at least 20 percent if you don’t want to pay private mortgage insurance or at least 5 percent if you are willing to consider a high-ratio loan), then you have a great shot at getting the best interest rates.

But what if you’re in the market for BC mortgage loans but don’t have perfect credit? We have a lot of clients in Vancouver and Victoria, as well as such places as Kamloops and White Rock, who have a somewhat rocky credit history. They went through a layoff, or they got divorced, or their spouse got ill and couldn’t work for a while, and they fell behind. There is a whole spectrum of lenders out there who realize that there are times when life keeps your credit score from being perfect, and they stand ready to finance your home purchase anyway. These “Alt-A” or “B” lenders do charge a higher interest rate than the premium “A” lenders, but the good news is that in Canada mortgage terms are generally always fairly short, which means that you can choose the ter m that you need to rebuild your credit so that when renewal time comes you can get a loan with a prime lender.

What if your profile won’t even work with a second-tier lender? Our clients in Chilliwack, Nanaimo and the big cities in BC have also taken advantage of private lending sources. These are companies or even individuals who want an investment that will return more than the basic interest that CDs and savings accounts provide — but without the elevated risk in the stock market or in commodities trading. So they’ll invest in mortgages that pay around 10 percent annually over one- or two-year terms. This gives borrowers the time they need to spruce up their credit and apply for a loan in one of the first two tiers, while allowing them to start building home equity.

Are you looking for a mortgage in BC? Give one of our lending specialists at Amansad Financial a call. We have a variety of scenarios that can bring you the funding you deserve.