Calgary High Risk Mortgages

High risk mortgages

The amount of people living in Calgary who look for high risk home mortgage is increasing. You have most likely seen advertising for “bad credit no problem” or “bad credit, 100% financing available”. High risk home mortgage lenders specialize in offering loans to people with adverse credit, due to bankruptcy or other financial problems. Is this a sales gimmick? Yes and no. For sure there are lots of mortgage options, but there is always a price. The worse your credit is the higher the interest rate.

There are many Calgary high risk mortgage lenders that will lend purely on the equity of the property. If you are able to get a great deal and buy a house far below current market value then depending on the purpose of the property it doesn’t matter if you have to pay slightly higher monthly payments.

An advantage of going with a high risk mortgage is that the process is typically a lot faster because they are not qualifying you like a bank which means there are fewer documents you need to prove. With high risk mortgages they are securing the loan with the extra equity you have in the property and not your personal ability to pay the mortgage back. Especially in Calgary, and how quickly the real-estate market can change using this type of mortgage can come in handy. Real-estate investors, whether they have good credit or not, use this lending practice all the time.

You must be careful when using these types of lenders because some may be not so honest and can be more of a headache than a positive experience. As a Mortgage broker I have access to these types of lenders, I have used them personally and am familiar with the process of high risk mortgages.