Mortgage Solutions · Credit Rebuilding
There's no formal "bad credit mortgage." It's shorthand for placing your mortgage at a B or private lender when a bank declines on credit: same home, different lender, higher rate. We treat it as a 24-month plan, not a one-shot transaction.
▍ Beacon-score tier locator
A-lenders generally want a 680+ beacon score with clean payment history. Below that, you're in B or private territory, for now. Drag to your score and see your starting tier; the climb back to A is the next section.
A B-lender will fund you on the same property, going down to roughly 580 beacon. The rate sits above prime, but it's a real mortgage, and a launchpad back to A.
A hard inquiry temporarily lowers your score a few points and typically recovers within 90 days. The bigger long-term factor is paying the mortgage on time, which becomes one of your strongest credit-building tools.
Not a one-shot deal
Done right, you spend less time in B than at A over a five-year period, because we place the deal at the right tier today and map the route back to prime from day one.
We test A first, then B, then private. There's no point quoting a private rate when a B-lender will fund the same file 4% cheaper.
We map exactly what needs to change: score targets, payment history, debt reduction. Paying revolving balances under 30% of limit often gains 30–50 points within 90 days.
Once income, payment history, and score thresholds are met, typically 12–24 months, we re-broker the file to a prime lender.
When B or private makes sense
Any one of these can knock a file out of A-lender territory, and each is something a B or private lender will work with while you rebuild.
Bank cut-off. B-lenders typically go to 580; privates lower.
In the last 12 months, even small balances knock out A-lenders.
A-lenders want 2+ years post-discharge; B-lenders accept much sooner.
A-lenders want 2 years discharged with re-established credit; B and private work with year-one post-discharge.
Must be addressed before any A-lender; B-lenders sometimes allow them paid from mortgage proceeds.
Even with no missed payments, 90%+ utilization drops your score and signals stress.
Newcomers to Canada with no Canadian history; rebuilders with limited active trade lines.
Losing the home or blowing the deal usually costs far more than a higher rate for two years.
How much, and what it costs
The trade-offs by lender tier. The job is to land you at the highest tier that will actually fund, then climb.
| Tier | LTV | Typical rate | Term |
|---|---|---|---|
| A-lender (prime) | Up to 80% (95% insured) | Prime + 0–1% | 1–10 yrs fixed or variable |
| B-lender (alternative) | Up to 80% | Prime + 1–3% | Usually 1–2 yrs |
| Private | Up to 75% (first) / 85% CLTV | 8–14% | 6–24 months |
The cost of B versus A on a $500K mortgage over five years is roughly $25K–$50K in additional interest. The cost of not having the mortgage (losing the home, blowing up the deal, missing the chance to start rebuilding) is usually much higher.
The plan, step by step
Every credit-rebuilding file follows the same path: placed at the right tier today, engineered back to prime tomorrow. Here's the order we work in.
There's no point quoting a private rate when a B-lender will fund the same file 4% cheaper. We test A first, then B, then private, in that order.
At funding, we map exactly what needs to change (score targets, payment history, debt reduction) so you can refinance to A-lender pricing at the next renewal.
Paying down revolving balances to under 30% of limit boosts your beacon faster than almost anything else. Many of our clients gain 30–50 points within 90 days from utilization changes alone.
For files with active collections or judgments, we partner with credit professionals to clean up reporting alongside the mortgage.
Once income, payment history, and score thresholds are met, typically 12–24 months, we re-broker the file to a prime lender. Done correctly, you spend less time in B than at A over a five-year span.
No commitment to start. We begin with an initial discussion, then a single credit report is used to shop multiple lenders so we can tell you exactly where you stand and what the plan looks like.
Common questions
Tell us about your situation. We'll match you to the right product and lender.
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