Bad Credit? Here’s How to Secure a Mortgage in Ontario
If you have bad credit, the idea of getting approved for a mortgage might feel out of reach. Maybe you’ve had missed payments, a high credit card balance, or went through a tough financial period. But here’s the good news: bad credit doesn’t mean no mortgage. It just means you need the right strategy—and the right mortgage partner on your side.
In this blog, we’ll walk through exactly what your options are, what lenders are looking for, and how you can still make homeownership happen in Ontario, even with bruised credit.
What Counts as “Bad Credit”?
Most lenders use your credit score to determine how risky it is to lend to you. In Canada:
- A score above 680 is considered good.
- 600–679 is fair.
- Below 600 is typically considered high risk.
If you’re below 600, traditional lenders like big banks may hesitate. But alternative lenders and private mortgage providers often see beyond the number—they look at the whole picture.
Can You Still Get Approved?
Yes. Even with bad credit, you may still qualify for a mortgage through:
1.Alternative (B) Lenders
These lenders are more flexible than traditional banks. They charge slightly higher interest rates but work with borrowers who have low credit scores, income challenges, or past collections.
2.Private Mortgage Lenders
Private lenders look more at your equity and the value of the property than your credit score. If you have a large down payment (typically 20% or more), you may be eligible even with a credit score below 550.
3.Co-Signed Mortgages
If you have a family member or close friend with good credit willing to co-sign, it can increase your chances of getting approved by a mainstream lender.
What Lenders Really Look For
Even if your score is low, lenders will still look for stability and potential. Key factors include:
- Size of down payment – Larger down payments reduce risk for lenders.
- Income stability – Lenders want to see that you can manage monthly payments.
- Debt-to-income ratio – Keeping your total debt low relative to your income improves your profile.
- Credit history trends – Are things improving? Lenders often reward progress, even if your score isn’t perfect yet.
How to Improve Your Approval Odds
Getting a mortgage with bad credit is possible—but a few small moves can make a big difference:
- Pay down high-interest debts – Especially credit cards and payday loans.
- Avoid new credit applications – Too many hits on your credit report can lower your score further.
- Build a consistent payment record – Even six months of steady payments helps.
- Save aggressively for a down payment – The more you can contribute upfront, the more flexible lenders will be.
Why You Shouldn’t Wait Too Long
Waiting for a perfect credit score can mean missing out on today’s prices or opportunities. In Ontario’s competitive market, timing matters. The longer you wait, the more prices can rise, and the harder it might be to catch up.
With the right lender, a strong down payment, and the help of a broker who understands how to structure your application, you don’t need a flawless credit report to buy a home.
Why Clients With Bad Credit Choose Anton Mortgage
At Anton Mortgage, we specialize in helping people who feel stuck. If you’ve been turned away by your bank, that doesn’t mean you’re out of options.
- We work with a wide network of 60+ lenders, including B-lenders and private options.
- We understand how to structure bad credit applications for approval.
- We’ll be honest and realistic with you—no pressure, just a clear plan.
If you’ve got questions, or if you’re ready to explore your options, contact us today.