By definition, a mortgage broker in British Columbia, Canada gives all vital information to the potential borrower about existing mortgage products, and then tries to find the best rates suitable for the borrower. With the advent of bad credit mortgage loans, borrowers now have the option of refinancing their present loan.
Being Self Employed Is Not A Bad Thing
In cases where there is still some outstanding debt that needs to be paid off, a bad credit mortgage loan can do that too; clearing off these old debts the homeowner gets to apply for mortgage rates that are significantly lower than what he was paying. There has been a perennial problem in British Columbia to get mortgages for the self employedindividual and often they have difficulty qualifying for these mortgages from banks and certain financial institutions. Nowadays, banks have started implementing policies which make it very hard for self-employed individuals to get mortgages. Fortunately, there are still many companies which do give mortgages for the self employed, and a by using a good BC mortgage broker, that can be easily accomplished.
Prudent Advice for Investors In Mortgage
There are many individuals in BC who are capable of managing their own investments, and even for such people, using a qualified broker who can handle investment mortgages is advisable, as they know exactly what is available in the market. For a start, you can avoid the management fees that are usually charges by investment companies, and this sort of investment could net you around 6% per annum; it could be more, but there is an element of risk involved. One of the conditions to get approval for investment mortgages on a property is to have in place at least 20% of the total cost as down payment. The above-mentioned deals are usually for private residential properties, but if you would are interested in commercial mortgages, then the rates are higher than those for residential properties.
Overcoming Bad Credit Ratings
When conducting business with a BC mortgage broker, a homeowner normally pledges his assets, a piece of property or house as collateral to help secure the mortgage loan. Due to unforeseen circumstances, if the homeowner cannot repay the loan at the pre-agreed conditions, the lender has the right to repossess the property or house which was kept as collateral. Following such a foreclosure, the lender can then even sell it off to pay off the mortgage. It is at times like this, that the help and advice of a professional mortgage expert could help you find the right mortgage to fit your needs, tolerance to risk, and your current credit situation. Of course, there are certain conditions that have to be done before applying for the mortgage; a copy of your credit report to ensure there are no errors in your report, which could lead to your credit rating being downgraded. A good BC mortgage broker will see to it that even with a bad credit history, a deal can be negotiated within your parameters.