Trusted mortgage services
A mortgage when your credit has taken a hit
Late payments, collections, a consumer proposal or a low score don't always rule you out. We look for lenders that weigh the whole picture, and plan your way back to a bank.
- 5-yr fixed
- 4.69%
- 5-yr variable
- 3.70%
Updated Oct 8 · on approved credit · Compare to bank rates
Where alternative lenders fit
Credit problems usually start with something life throws at you: a job loss, an illness, a separation or a business that didn't work out. Banks lean heavily on your credit score and debt ratios, so a few hard years can rule them out for a while. Alternative lenders, sometimes called B lenders, fill that gap. They are trust companies, some credit unions and mortgage finance companies, and they are more flexible than banks about credit and income.
The trade-off is cost. With an alternative lender you usually need at least 20% down, or 20% equity if you are refinancing. Terms are short, often one or two years, rates are higher than a bank's, and there is often a lender fee. Used well, it's a stepping stone: you make every payment on time, rebuild your credit and move to a bank at renewal. We plan that with you from the first conversation, with no judgment about how you got here.
Situations alternative lenders consider
Late payments and collections
Missed payments, accounts in collections or a low score after a hard stretch. Lenders look at what happened, how recent it was and what has changed since.
Consumer proposals and bankruptcy
Some lenders will consider you while a consumer proposal is still being paid, and more will once it is paid off. A discharged bankruptcy can be considered too.
High debt ratios
If your debts are high compared with your income, alternative lenders can be more flexible than banks, usually with more equity or a larger down payment behind the loan.
How it works
Your path back to a bank
Review your credit
We go through your credit with you, explain what lenders will see and look for errors or quick fixes before anything goes to a lender.
Find the right lender
If a bank or credit union can approve you, we start there. If not, we compare alternative lenders on rate, fees, term and how they treat your situation.
Rebuild over the term
For the next one to two years you make every payment on time, keep card balances low and avoid new debt. We check in along the way.
Move at renewal
A few months before your term ends, we review your credit and income and look at moving you to a bank or credit union, with no prepayment penalty at maturity.
Frequently asked questions
You have questions — we have answers!
Bad Credit Mortgages in BC
What credit score do I need for a mortgage?
There isn't one number. For an insured mortgage, with less than 20% down, CMHC requires at least one borrower to have a score of 600 or more, and each lender sets its own minimum on top of that. Alternative lenders often look past the score to the reasons behind it, how recent the problems were and how much equity or down payment you have. A lower score usually means fewer lenders and a higher rate, but not always a no.
Can I get a mortgage during or after a consumer proposal?
Often, yes. Some alternative lenders will consider you while a consumer proposal is still being paid, usually when your payments on it are up to date and you have enough down payment or equity. More lenders open up once it is paid in full, and more again as you rebuild your credit afterward. Keep the paperwork showing your payments and that the proposal is complete, because lenders usually ask for it. Rules vary by lender, so ask us what's available for you.
Can I get a mortgage after bankruptcy?
It's possible once you are discharged. Alternative lenders can consider a discharged bankruptcy, usually with at least 20% down or 20% equity, and they usually want to see that you have started rebuilding since, for example with a secured credit card paid on time. The more time that has passed since your discharge, and the cleaner your record since then, the more lenders you can choose from. Moving to a bank usually comes after a period of rebuilt credit.
Do alternative lenders use the stress test?
Federally regulated lenders apply the stress test, which checks that you could still afford your payments at a higher rate than the one you will pay. Some alternative lenders aren't federally regulated, and their rules vary: some apply a similar test, others qualify you differently, and many put more weight on your equity. Ask us how a particular lender would qualify you, because it can change which lenders are open to you and how much you can borrow.
How do I rebuild my credit and get back to a bank?
Start by checking both of your credit reports, from Equifax and TransUnion. You can request them free, and you can ask the credit bureau to correct any errors. Then pay every bill on time, keep credit card balances under about 30% of the limit and avoid taking on new debt. If you have few accounts left, a secured card used lightly and paid in full each month can help. After one to two years of that, we look at moving your mortgage to a bank at renewal.
What if an alternative lender can't help?
Then a private mortgage may be the next step. Private lenders lend mainly on the equity in your property, so they can sometimes help when a bank and an alternative lender can't, for example with recent missed payments or arrears to catch up on. It costs more again and runs for a short term, so it only makes sense with a clear plan to move to an alternative lender or a bank. A non-profit credit counsellor is also worth a call if your debts feel unmanageable.
Today's rates
Our rates vs the banks'
We shop 50+ lenders, so the rate you're offered isn't limited to one bank's rate sheet. Updated Oct 8.
Apply for your mortgage in minutes
Everyone's rate is different. What's yours?
Our job is to find you a competitive rate and terms that fit. Your rate qualification depends on certain factors, such as credit score and home equity, as per Canadian regulations. Get your details fast — there's no cost and no obligation.
- Current variable mortgage rate
- 3.70%
- Current prime rate
- 4.45%
| Term | Bank posted | Our rates | Action |
|---|---|---|---|
| 6 Months | 7.89% | 4.79% | Get this rate: 6 Months |
| 1 year fixed | 5.49% | 4.64% | Get this rate: 1 year fixed |
| 2 year fixed | 5.44% | 4.44% | Get this rate: 2 year fixed |
| 3 year fixed | 6.05% | 4.54% | Get this rate: 3 year fixed |
| 4 year fixed | 6.01% | 4.39% | Get this rate: 4 year fixed |
| 5 year fixed | 6.19% | 4.69% | Get this rate: 5 year fixed |
| 7 year fixed | 6.41% | 4.79% | Get this rate: 7 year fixed |
| 10 year fixed | 6.81% | 4.79% | Get this rate: 10 year fixed |
| 5 year variable | No bank rate | 3.70% | Get this rate: 5 year variable |
Bank posted rates are the big banks' posted rates published by the Bank of Canada (1, 3 and 5 years) and by Dominion Lending Centres (other terms). Some conditions may apply. Rates may vary from province to province. Rates subject to change without notice. Rates change often and depend on your down payment, credit and property; on approved credit (O.A.C.). E.&O.E.
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Contact info
Call, email or send us a message. We negotiate with over 50 lenders to find the right mortgage for you.
- Our location525 W 8th Ave #800, Vancouver, BC V5Z 1C6
- Phone number778-838-8005
- Email addressinfo@coastalblue.ca