Having bad credit doesn't eliminate your chances of homeownership in Quebec. Whether it's a recent bankruptcy, a consumer proposal, or simply a score under 600, adapted solutions exist — from type B alternative lenders to private lenders who evaluate your assets rather than your credit history.
An OACIQ-certified mortgage broker specializing in difficult credit knows each alternative lender's criteria and can find a solution where your bank said no. The goal: finance you today and improve your credit to refinance at a conventional rate in 1 to 2 years.
Key Points
Mortgage Options Based on Your Credit Score
Frequently Asked Questions
What is the minimum credit score for a mortgage in Quebec?+
For chartered banks (type A), the minimum score is generally 620 (580 for some CMHC products). For type B lenders, it's 550 to 600. For private lenders, there's often no minimum score — it's the property value that matters.
Does a consumer proposal affect my ability to get a mortgage?+
Yes, but not permanently. A consumer proposal stays on your file 3 years after final payment. During this period, B and private lenders can finance you. After discharge, you can qualify for A lenders with good credit management.
What are the interest rates for a bad credit mortgage?+
B lenders: conventional rate +1 to 2% (about 5.5% to 7%). Private lenders: 8% to 18% depending on risk. These rates are temporary — the goal is to refinance to a conventional rate in 1 to 2 years.
Do I need a co-signer if I have bad credit?+
A co-signer with a good score can give you access to A lenders. Their credit compensates for your weakness, but their name appears on the property title or mortgage responsibility. An OACIQ broker can assess whether this is the best strategy for you.
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