Buying a Home Without A Credit Score in Canada
Buying a home is one of the biggest financial investments you will ever make, and it can be intimidating for many. One common hurdle to jump through is having a good credit score. But what if you don’t have one? Can you still buy a home? The answer is yes — but there are things you should know before getting started on this process.
Getting Approved for Mortgage Without Credit Score
It is possible to get approved for a mortgage without a credit score, however, the process can be more involved than with someone who does have one. Some lenders will consider other factors like your current income, length of employment, assets, and debt levels to decide if they want to offer you a loan.
It’s also important to note that you may need to put down a larger deposit than normal when applying for a loan without credit history. This serves as additional assurance to the lender that they are unlikely to lose money if something goes wrong during the repayment period. It’s not uncommon for lenders to require up to 20% of the total amount you are borrowing up front as your deposit.
What You Need To Know Before Applying For Mortgage Without A Credit Score
Before applying for a mortgage without any credit score or history, it’s important that you understand exactly how much money you can afford and what kind of loan terms you will be able to get from prospective lenders. The best way to do this is by speaking with an experienced mortgage broker who can help guide you through the entire process and provide valuable advice about different loan options available to you in Canada.
If your credit score isn’t great or doesn’t exist at all, it doesn’t mean that home ownership has to remain out of reach. With some preparation and research, it is possible to apply for and receive approval on mortgages even without having any credit score. However, having professional advice on hand from experienced mortgage brokers can increase your chances significantly when pursuing this path towards owning your own home in Canada. So don’t let lack of credit stop you from achieving your dream of homeownership!
