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Residential · Bruised Credit

Bad credit mortgages.

Scores in the 500s, a proposal or bankruptcy behind you, payments that got away — placed today, with a written plan back to prime. BC and Alberta.

Banks lend on the last two years of your credit file; life doesn't schedule its disasters that way. A divorce, an illness, a business that failed — the score records the event, not the recovery. The bruised-credit market exists precisely for that gap, and it only goes wrong when it has no exit: high-rate money with no plan is a trap, the same money with a dated route back to prime is a bridge. Every file we place here comes with the second thing.

The situations we place

Whatever the credit file says, there's a lane.

Scores in the 500s

Low-score files placed with lenders who price the story, not just the number.

Consumer proposal

Funding a proposal through equity, paying one out early, or qualifying while one is active.

Discharged bankruptcy

Post-bankruptcy purchases and refinances, with the route back to insured lending mapped in writing.

Missed payments & collections

Recent lates, collections, or maxed cards — consolidated and stabilized before they get worse.

Refinance to rebuild

Equity used to clear the debts that are bleeding the score, so the rebuild actually starts.

Purchase with bruised credit

Buying now at Alternative pricing rather than renting through two more years of rebuilding.

Foreclosure avoidance

Arrears and demand letters bridged before a forced sale takes the equity with it.

Graduation to prime

The point of every file: a dated plan to move back to bank pricing at renewal.

Lender comparison

The staircase back to prime.

Three lanes, used in sequence when needed: stabilize, rebuild, graduate. We place you on the cheapest step your file supports today.

Alternative / B-Side (the workhorse)
Best for: Scores in the 500s–600s, a proposal or bankruptcy in the past, income you can show
Leverage: Typically up to 80% LTV
Rate: Roughly 1–3% above A-side, plus about a 1% lender fee
Term: Often 1–3 years while the credit re-establishes
Qualifying: Expanded ratios; commonly qualified at the contract rate rather than the full stress test

Where most bruised-credit files land. The rate premium is temporary by design — the term is a runway to rebuild, then refinance at bank pricing.

Private (stabilize first)
Best for: Active collections, judgments, arrears, or credit too fresh-wounded for a B-lender
Leverage: Up to ~75–80% LTV; second mortgages to ~75% owner-occupied
Rate: Seconds typically ~8%–11%; firsts roughly 4.5%–10% depending on equity and file
Term: 6–24 months, interest-only, open after a short closed period
Qualifying: Equity-based — the property carries the deal while the credit is treated

The emergency room, not the recovery ward: clear the collections, stop the foreclosure, consolidate the bleeding — then step down to B-side, then prime.

Prime / A-Side (the destination)
Best for: Re-established credit — the refinance every file on this page is aiming at
Leverage: Up to 95% LTV insured; 80% conventional
Rate: Lowest available
Term: Standard terms and amortizations
Qualifying: Full stress test — the greater of contract + 2% or 5.25%

Insured lenders generally want to see credit re-established after a bankruptcy or proposal — the '2-2-2' shorthand: roughly two years, two new credit lines, reasonable limits. We put the date in the plan and work backwards.

Rates, ratios, and leverage are typical ranges for illustration — last reviewed July 2026 — and depend on the file. Map your own timeline with the back-to-prime calculator.

Case Studies

Files like yours.

Case studies for this category are being added — check back soon. In the meantime, see how we structure real files on our case studies page.
Bad credit mortgage FAQ

Common bruised-credit questions.

Can I get a mortgage with a credit score in the 500s?+

Often, yes. Alternative (B) lenders regularly place scores in the 500s at up to 80% loan-to-value, pricing roughly 1–3% above bank rates with about a 1% fee. The score sets the price, not the possibility — what matters more is the story behind it and the equity or down payment in the deal.

Can I get a mortgage after a consumer proposal or bankruptcy?+

Yes — including, in some cases, while a proposal is still active: select lenders fund against equity with the proposal payout built into the advance. After discharge, B-lenders come first, and insured bank lending typically returns once credit re-establishes — the shorthand is about two years and two new credit lines, managed well.

Should I pay out my consumer proposal early?+

If there's home equity, frequently yes. A refinance that pays the proposal out in full stops the monthly payments and starts the credit-rebuild clock years earlier — the R7 rating ages from completion, not from your last payment. We run the math against your equity before you decide.

Will one bad year follow me forever?+

No. Bruised-credit lending is built as a staircase: private capital stabilizes the emergency, a B-lender carries the rebuild years, and a bank refinance ends the story. Most files that follow the plan are back at prime pricing within a few renewal cycles — the expensive mistake is staying parked on high-rate money with no exit date.

I'm behind on my mortgage and getting letters — is it too late?+

Not if you move now. Equity-based lenders can pay out arrears and stop a foreclosure before it consumes your equity in legal costs and a below-market sale. The window narrows with every letter, so this is the one file where speed matters more than rate.

Does consolidating my debts into the mortgage help my credit?+

Usually, twice over: the collections and maxed cards that drag the score get cleared, and the freed monthly cash flow makes every remaining payment easier to keep perfect. Track the payoff timeline with our back-to-prime calculator.

How long until I'm back at bank rates?+

The honest answer is a date, not a guess — it depends on what happened, when the discharge was, and how the rebuild is managed. We map it in writing at the start: which lender now, what has to be true at renewal, and when the insured file becomes possible.

File preparation

Rebuilding? Have these on hand.

Nothing on this list disqualifies you — it just tells us which step of the staircase you're on. No judgment; we've seen every version of this file.

Talk to a specialist

One bad chapter isn't the book. Start here.

Tell us what happened and where things stand — confidentially — and we'll tell you which step fits today and the date prime becomes realistic.