Can I get a mortgage with bad credit in Ontario?

Yes. There are three tiers of lenders in Ontario — A lenders (banks), B lenders (alternative lenders), and private lenders. B lenders approve borrowers in the 500–680 credit score range with higher rates. Private lenders have no minimum credit score requirement at all — they lend based on equity in the property. The right lender depends on your score, equity, income, and overall file. OAC — subject to change.

How much down payment do I need with bad credit?

It depends on your credit score and lender tier. For CMHC-insured mortgages (minimum 5% down), you typically need a 600+ credit score. B lenders generally require 20% down for purchases. Private lenders lend based on loan-to-value — typically up to 75–80% of the property value, meaning you need at least 20–25% equity or down payment. OAC — subject to change.

How long will I have to stay with a private or B lender?

Most clients use private or B lender financing as a bridge — typically 12 to 24 months — while they repair their credit profile. Once your score is rebuilt and any insolvency proceedings are complete, you move to a B lender, and then to an A lender at prime rates. A good broker builds this exit strategy into the deal from day one. OAC — subject to change.

Can I get a mortgage after a consumer proposal or bankruptcy in Ontario?

Yes. Private lenders can often approve immediately after discharge or completion if you have sufficient equity. B lenders typically require 1–2 years post-discharge/completion with re-established credit. A lenders generally require 2+ years. The specific timeline depends on your lender, credit re-establishment, and down payment. OAC — subject to change.

Bad Credit Mortgage Ontario — Get Approved With Any Credit Score

Q: What credit score do I need for a mortgage in Ontario?

A lenders (banks, credit unions, monoline lenders) typically require a minimum 680 credit score. B lenders (Equitable Bank, Home Trust, MCAP) will consider scores as low as 500–550 with compensating factors. Private lenders set no minimum credit score — they evaluate the property equity and exit strategy instead. OAC — subject to change.

Life Happens

Bad Credit Is a Situation.
Not a Life Sentence.

Credit damage is almost always the result of a specific event — not a character flaw. The lenders we work with understand that.

💔

Separation or Divorce

📉

Business Downturn

🏥

Medical Emergency

📋

Consumer Proposal

⚖️

Bankruptcy

🏛️

CRA Debt / Judgments

💼

Job Loss

🔄

Missed Payments

📊

Collections / Write-offs

What Lenders Actually Look At Beyond Your Score

Your credit score is one data point — not the whole picture. B and private lenders also weigh: property equity (the most important factor for private lenders), income stability, reason for credit damage, time since the credit event, and down payment size. A strong equity position can overcome almost any credit profile at the private level.

Your Options Explained

Three Tiers of Lenders.
One of Them Fits Your File.

Canada's mortgage market has three distinct lending tiers. Most borrowers with credit challenges qualify at B or private level — often both.

Tier 1

A Lenders

Banks · Credit Unions · Monoline

Min. Score680+

RatePrime / Lowest

Min. Down5% (insured)

Stress TestRequired

With Bad CreditNot available

Tier 2

B Lenders

Equitable · Home Trust · MCAP

Min. Score500 – 550+

RatePrime + 1–3%

Min. Down20%

Stress TestVaries

With Bad CreditYes — OAC

Tier 3

Private Lenders

MICs · Individual Investors

Min. ScoreNone

Rate8–14%+ OAC

Max LTVUp to 80%

Stress TestNot required

With Bad CreditYes — equity focus

All rates OAC and subject to change. Speak to a broker for your specific scenario.

The Strategy

This Is a Bridge,
Not a Destination.

Nobody wants to stay with a private or B lender long-term. The rates are higher, the fees are real, and the terms are short. That's exactly the point — they are a deliberate, temporary tool to get you from where you are now to where you need to be.

Every file I take on at the private or B level gets an exit strategy built in from day one. That means a clear timeline, specific credit milestones to hit, and a plan to refinance into conventional financing at the end of the term.

Most clients move from private to B to A within 2–3 years. Some make it in 12–18 months with aggressive credit rebuilding. The ones who don't make it are the ones who don't have a plan — or a broker who follows up.

What You Can Do Right Now to Speed Up the Timeline

Get a secured credit card and charge $50/month to it — pay in full, every month
Do not miss a single payment on anything from today forward
Avoid applying to multiple lenders simultaneously (each hard pull damages the score you're rebuilding)
If you have a consumer proposal, make every payment on time
Document your income — even self-employed income shown consistently helps

Typical Path to Prime

1

Now — Private or B Lender

Stabilize your situation. Clear arrears, consolidate debt, stop the bleeding. Private = equity-based, closes in days. B = credit 500+, 20% down minimum. OAC.

2

Months 1–12 — Rebuild Credit

Two secured credit products, $2,500+ limits each. Zero missed payments. Score climbs 50–100 points in 12 months with consistent behaviour.

3

Year 1–2 — Move to B Lender

Once score crosses 550–600 with 2 trade lines, most B lenders will approve. Rate comes down significantly from private. OAC.

4

Year 2–3 — Prime Rate

680+ score, 2+ years clean payment history, insolvency off bureau or well-seasoned. Welcome to A lender rates. This is the goal. OAC.

Why It Matters Who You Call

Bad Credit Files Require
a Different Kind of Broker.

Most brokers have 5–10 lender relationships and submit to whoever picks up the phone. Bad credit files require a wider network and better judgment about which lender fits which file.

What Makes the Difference

In 15+ years placing complex Ontario mortgages, I've learned that bad credit approvals come down to three things:

Lender match — every private lender has different risk appetite. The file that one declines, another approves. You need to know the difference before you apply, not after.
File presentation — how a file is presented to a lender is as important as the numbers in it. Context, narrative, and compensating factors matter.
Persistence — a hoarding home in Brampton with arrears on two mortgages and no active income got approved after every other lender passed. That's not luck. That's knowing when to keep calling.

Paul Hunjan

Mortgage Broker #M09001187 · MA Mortgage Architects #12728 · FSRA Licensed
256 Queen Street West, Brampton ON · 416-820-8601

Common Questions

Bad Credit Mortgage
Ontario — FAQ

Yes. There are three tiers of lenders in Ontario — A lenders (banks), B lenders (alternative lenders), and private lenders. B lenders approve borrowers in the 500–680 credit score range. Private lenders have no minimum credit score — they lend based on property equity. OAC — subject to change.

A lenders typically require 680+. B lenders (Equitable Bank, Home Trust, MCAP) will consider scores as low as 500–550 with compensating factors. Private lenders set no minimum — they evaluate property equity and exit strategy. OAC — subject to change.

For CMHC-insured mortgages (5% down) you typically need a 600+ score. B lenders generally require 20% down. Private lenders lend to 75–80% LTV, meaning you need at least 20–25% equity or down payment. OAC — subject to change.

Most clients use private or B financing as a 12–24 month bridge while rebuilding credit. Once your score is rebuilt and any insolvency is well-seasoned, you move to a B lender, then to A lender prime rates. A good broker builds this exit strategy into the deal from day one. OAC.

Yes. Private lenders can approve immediately after discharge/completion if you have sufficient equity. B lenders typically require 1–2 years post-discharge with re-established credit. A lenders generally require 2+ years. OAC — subject to change.

Bad Credit Mortgage
Ontario — Approved
Where Banks Say No.

Bad Credit Is a Situation.
Not a Life Sentence.

Three Tiers of Lenders.
One of Them Fits Your File.

This Is a Bridge,
Not a Destination.

What You Can Do Right Now to Speed Up the Timeline

Bad Credit Files Require
a Different Kind of Broker.

Bad Credit Mortgage
Ontario — FAQ

Tell Me Your Situation.
I'll Tell You Your Options.

Bad Credit MortgageOntario — ApprovedWhere Banks Say No.

Bad Credit Is a Situation.Not a Life Sentence.

Three Tiers of Lenders.One of Them Fits Your File.

This Is a Bridge,Not a Destination.

What You Can Do Right Now to Speed Up the Timeline

Bad Credit Files Requirea Different Kind of Broker.

Bad Credit MortgageOntario — FAQ

Tell Me Your Situation.I'll Tell You Your Options.

Bad Credit Mortgage
Ontario — Approved
Where Banks Say No.

Bad Credit Is a Situation.
Not a Life Sentence.

Three Tiers of Lenders.
One of Them Fits Your File.

This Is a Bridge,
Not a Destination.

Bad Credit Files Require
a Different Kind of Broker.

Bad Credit Mortgage
Ontario — FAQ

Tell Me Your Situation.
I'll Tell You Your Options.