Defaults, bankruptcy, too many credit Enquiries, missed payments, unpaid bill or tax, & more

A bad credit history might affect the possibility to get a home loan. However, depending on the severity of the situation, it might still be possible to get a home loan with some lender. This might have an impact on the interest rate as the lender is taking a greater risk.

Credit reporting agencies (like Equifax) maintain records of your credit history on your credit file.

If you missed a bill payment or credit repayment (e.g. credit card, personal loan, mortgage, etc), it might not show up on your credit file.  

Banks check your credit file as well as their credit history with you (if you are or have been their client).

Your capacity to borrow money might be affected when: 

  • Bad credit history recorded in reporting agencies: credit file show default, bankruptcy, judgements, court writs, too many credit enquiries.
  • Multiple missed payments on the provided credit statements (typically referring to the mortgage to refinance but also credit card or other loans statement might be requested).
  •  Lender credit history with you.
  • Unpaid bill or tax: might be visible on provide supporting documents.
If you bank decline you because of these reasons, you can still have a chance to get a home loan with non-conforming lenders. They are specialised lenders with a more flexible policy. However, their fees and interest rates might be higher because of the higher risk of this loans. 
An experienced Mortgage Broker has access to non-conforming lender as well: an expert advice is strongly recommended.

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