Your credit score is a snapshot.
It doesn't have to be your answer.
A missed payment, a consumer proposal, a medical event, a separation — life happens and credit scores reflect it. Private and B lenders evaluate your equity and your full picture, not just a three-digit number. No credit check required to start a conversation.
How credit affects your mortgage options
What banks look at — and why it shuts doors
A lenders use your credit score as a gating factor. Most require a minimum score of 680 or higher, and anything below that triggers an automatic decline before anyone even looks at your income, equity, or actual ability to repay.
Credit bureaus record missed payments, collections, judgments, proposals, and bankruptcies — and those marks stay on your file for 6–7 years. A single event from several years ago can still be holding your score down today, even if your situation has completely changed.
Banks are also required to follow OSFI guidelines, which means no exceptions for bruised credit — regardless of how strong your equity or income is. Alternative lenders operate outside those rules.
What actually went wrong — and why it matters
Lenders who work with bruised credit files care a lot about the story behind the score. A borrower who missed payments during a divorce, illness, or job loss — and has since stabilized — is a very different file than someone with ongoing collection activity.
Being able to explain what happened, what changed, and what your situation looks like today is often the difference between an approval and a decline with alternative lenders.
The goal isn't just to get approved — it's to get approved on a structure that gives you a realistic path back to better rates when your credit recovers.
Credit challenges that don't have to mean no
Most bruised credit situations have a path forward — the solution depends on your equity, income stability, and how recently the credit event occurred.
Missed payments & collections
Late payments and collection accounts lower your score significantly. B lenders can sometimes work around isolated events, particularly if they're older or already resolved.
B lender or privateConsumer proposal
An active or recently completed consumer proposal doesn't automatically mean you're out of options. Equity-based lending may still be available, and some B lenders will consider post-proposal borrowers.
Equity-based optionsBankruptcy — discharged
A discharged bankruptcy stays on your bureau for up to 7 years. Private lenders can often work with discharged borrowers based on equity alone, with a plan to rebuild toward B or A lending.
Private lender pathJudgments & liens
Court judgments or CRA liens registered against your property can block a sale or refinance. A private mortgage can sometimes clear these and allow you to restructure.
Urgent situations welcomeHigh credit utilization
Maxed-out credit cards drag your score even when payments are current. Consolidating into a mortgage can reduce utilization, lower your monthly payments, and help rebuild your score.
Consolidation optionThin or rebuilt credit
Recently arrived in Canada, or rebuilding after a major event? Limited credit history can be as problematic as bad credit for A lenders. Alternative paths may still exist.
Case-by-caseWhat we can help you with
The right solution depends on your equity position, how recent the credit event was, and what you're trying to accomplish. Here are the most common paths.
B Lender Mortgage
If your score is in the 550–679 range and you have sufficient equity, a B lender may be the right fit. Rates are higher than banks but lower than private, with standard term lengths. Often the best middle ground for bruised credit borrowers who still have strong equity.
Learn about B lender optionsPrivate Mortgage
When credit is severely damaged or a B lender isn't an option, private lenders fund based primarily on available equity — not your score. Typically short-term (6–24 months), with the goal of rebuilding credit and transitioning to better rates at renewal.
Learn about private mortgagesDebt Consolidation Refinance
High utilization from credit cards and personal loans is often what's dragging the score down in the first place. A consolidation refinance can clear those balances, reduce monthly obligations, and give your credit a chance to recover.
Learn about refinancingHow a bruised credit review works
We start with a conversation, not a credit pull. Understanding your situation fully is the first step to finding a realistic path forward.
Tell us what happened
The credit event, when it occurred, and what your situation looks like today. This context shapes everything — no credit check at this stage.
Equity & property review
We assess your equity position, property type, and current mortgage balance to determine which lender tier is realistic for your file.
Options & exit strategy
We present realistic paths — B lender, private, or both in sequence — with honest rate expectations and a clear plan for getting to better terms.
File submission & closing
Once a path is confirmed, we prepare and submit. Private files can close in as little as 7–10 days. B lender timelines are typically 2–3 weeks.
What bruised credit files can look like
Examples only. All financing subject to qualification, property assessment, and lender approval. Results vary. OAC.
Consumer proposal — debt relief needed
Borrower in an active consumer proposal used available home equity to pay out the proposal in full, removing it from the bureau sooner and stabilizing monthly cash flow.
Score 562 — credit card consolidation
Homeowner with multiple maxed-out cards and a score dragged down by utilization. B lender refinance paid out $74K in card debt, dropped utilization to near zero, and reduced monthly payments by $1,100.
Post-bankruptcy, bank declined
Borrower 2 years post-discharge with a score of 498. Bank and B lender both declined. Private first mortgage approved on equity. B lender exit planned at 18-month mark once bureau rebuilt.
Judgment registered — sale at risk
Court judgment registered on title was blocking a pending property sale. Private second mortgage funded quickly to discharge the judgment and allow the sale to proceed on time.
Bruised credit mortgage FAQs
For B lenders, most require a score of at least 550–580, though some go lower depending on equity and the nature of the credit events. The stronger your equity position, the more flexibility there is.
Private lenders typically have no minimum score requirement at all — they lend based on the value of the property and available equity, with credit being a secondary consideration.
Yes, in some cases. Private lenders can often work with borrowers in active consumer proposals, particularly when there is meaningful equity in the property. The proposal itself isn't necessarily disqualifying — the equity position and overall file are what matter.
Some borrowers use a private mortgage to pay out the proposal early, which removes it from the bureau sooner and begins the credit rebuild timeline faster.
A lenders (banks) typically want 2 years post-discharge with rebuilt credit. B lenders vary — some will consider files 1–2 years post-discharge with sufficient equity and credit rebuilding activity.
Private lenders can often work with recently discharged borrowers immediately, as the focus is on equity. The typical strategy is a private mortgage to bridge the gap, with a B or A lender exit once the bureau has had time to recover.
Rates depend on your specific credit profile, equity position, and which lender tier is appropriate for your file.
B lenders typically run 1–4% above what an A lender would offer, depending on how bruised the credit is and how much equity is available.
Private lenders are higher — typically 8–12%+ for Alberta files — but are short-term by design. The goal is stability now and better rates later, not staying in private lending indefinitely.
A mortgage that reports to the bureau and is paid on time is one of the strongest credit-building tools available. Consistent mortgage payments carry significant weight in credit scoring models.
Additionally, if your bruised credit is partly driven by high utilization — maxed-out credit cards — paying those out through a consolidation refinance can improve your score meaningfully, sometimes within one or two reporting cycles.
We build an exit strategy into every private mortgage file from day one. The plan typically involves one or more of: rebuilding credit through on-time payments and reduced utilization, allowing negative bureau items to age off, building a payment history post-bankruptcy or proposal, or improving income documentation.
Most private mortgage terms are 6–24 months. The goal is to qualify with a B or A lender at renewal — paying private lender rates long-term is not the objective.
Your credit score isn't the whole story. Let's hear it.
No credit check to start. Tell us your situation and we'll give you an honest assessment of what's available — and what a realistic path forward looks like.
Or reach us directly: 1 (587) 200-6727 · lending@nowmtg.ca