Bad Credit Mortgages in Toronto, Based on Your Home’s Equity
You may still get a mortgage in Toronto with bad credit if you own a home with enough equity in it. Banks decide mostly on your credit score and income. Equity Rich is an equity-based mortgage lender: we decide on your home’s value and the equity in it. Credit is reviewed, but on our equity products your home equity carries most of the weight, and income proof is optional. You can borrow up to 80% of your home’s value, subject to approval, and if your file qualifies, approval can come in 4 hours. Call 647-930-9738 to talk it through.
Bad credit mortgages in Toronto: we look at your equity first
A low score usually tells a bank about the past: a few missed payments, a collection, a consumer proposal, a hard year in business. It says little about what you own today. If your home is worth more than you owe on it, that equity is security a lender can rely on.
That is how we lend. We look at the property, what it is worth, and what is already registered against it. Your credit history is reviewed, but it is not what decides the answer on its own, and a past setback does not rule you out. Every application is still reviewed, and approval is never automatic.
This page is for homeowners in Toronto and the GTA who need to borrow against a home they already own: to clear debt, catch up on arrears, pay a tax bill or get through a tight stretch. It is not for first-time buyers.
Turned down by your bank?
Tell us about your home and what you owe on it. We will tell you quickly and honestly what it may qualify for. Subject to approval.
Why banks say no, and what changes with an equity lender
Mortgage lenders in Ontario fall into three broad groups. Knowing which is which explains most bank refusals.
| Type of lender | Who they are | What they decide on |
|---|---|---|
| A lenders | The big banks and most credit unions | Credit score, provable income and debt ratios first. Strict rules, lowest costs, and the most refusals for bruised credit. |
| B lenders (alternative lenders) | Trust companies and alternative lenders | More flexible on credit and income, but they still check both and still have limits. |
| Equity-based and private lenders | Lenders like Equity Rich, and private lenders | Mainly the property and the equity in it. Faster and more flexible, usually at a higher cost, and usually for shorter terms. |
A bank turns you down when your score or debt ratios fall outside its rules, however much equity you have. We start from the other end. Because we lend on equity, a past credit problem matters far less than how much your home is worth and what you already owe on it. You can read more about alternative mortgage lenders and how they differ from banks.
So if you are searching for mortgage lenders for bad credit history in Ontario, the useful question is not which lender ignores credit, but which lender decides on something else. For a homeowner, that something else is equity.
We decide on our own equity-based lending products first. If another lender suits your file better, we also have broker access to partner lenders, so you are not left without a next step.
Situations we help with
Bad credit means different things to different people. These are the situations Toronto homeowners most often bring to us:
- Missed or late payments on cards, loans or a mortgage that brought your score down.
- Collections or judgments still showing on your credit report.
- A consumer proposal or bankruptcy, finished or still being paid. A mortgage after a consumer proposal is possible when there is enough equity in your home.
- Tax arrears owed to the CRA or property tax arrears owed to the city. If you are behind on your mortgage, see our page on power of sale in Ontario.
- High debt that pushes your debt ratios past a bank’s limits, even if every payment is on time.
- Self-employed or irregular income that a bank will not count. Income proof is optional on our equity products; see mortgages without proof of income.
None of these is held against you. We need the facts so we can find a loan that fits.
Your options with bad credit
Every option below is secured on the equity in your home. Each card links to a page with the details.
- Second mortgage A bad credit second mortgage leaves your first mortgage and its rate in place and lends against the equity on top.
- Home equity loan A bad credit home equity loan gives you a lump sum against your home, often used to pay off debt or arrears.
- Private mortgage A short-term private mortgage from Equity Rich, for files that need the most flexibility.
- Debt consolidation mortgage Roll credit cards, loans and tax arrears into one payment secured on your home.
If you want to refinance with bad credit and replace your current mortgage altogether, we can look at that too. We will tell you which route costs you less overall, not just which is quicker.
How much you can borrow and how fast
- Up to 80% of your home’s value, subject to approval, minus what you already owe on it.
- Funds in days once you are approved and your lawyer has reviewed the papers.
- Tax free. Money you borrow against your home is a loan, not income.
Example only: a Scarborough home appraised at $900,000 with $450,000 left on the first mortgage. 80% of $900,000 is $720,000. Take away the $450,000 owing, and the most you could borrow is up to $270,000. The final amount depends on the appraisal and your file, and is subject to approval.
How it works in 4 steps
Call or send the form
Tell us your address, roughly what the home is worth and what you owe on it.
Equity review
We look at the property and the mortgages registered on it. Credit is reviewed too, but your equity carries most of the weight.
Approval and terms
If your file qualifies, you get an approval with the terms and every cost in writing.
Lawyer review and funding
Your lawyer reviews the papers, and funds follow in days.
Using the loan to get back on track
Many homeowners use an equity loan to replace several high-interest debts with one payment. Credit cards and some loans can cost far more each month than a loan secured on your home, so consolidating them can free up cash flow and make payments easier to keep up.
Paying debts off and keeping up with payments over time is generally what helps a credit history recover. We cannot promise your score will change, and we do not offer credit repair. What we can do is help you see what each option costs before you decide, so the loan helps and does not add pressure.
Most equity loans are for a short term. Ask us how you would exit the loan, whether by refinancing with a bank later, selling or paying it down, before you sign.
Where we lend in Toronto and the GTA
We lend on homes across the City of Toronto, including North York, Scarborough, Etobicoke, East York and York, and across the GTA: Peel, York, Durham and Halton, out to Hamilton. Detached houses, semis, townhouses and condos all qualify for a review. Our office is at 18 Wynford Drive in North York.
Many of the homeowners who call us have lived in their homes for years and built up a lot of equity, but a bank still says no because of their credit. That is exactly the kind of file we lend on.
Quick Facts
- Max LTV Up to 80% combined, subject to approval
- Credit Check Reviewed
- Funding Speed In days, once approved
Ready to Get Started?
Approval is based mainly on your home equity. Credit is reviewed, and income proof is optional.
Get Free Assessment +1-647-930-9738Other Services
- Alternative Mortgage Lenders
- Bridge Mortgage
- Commercial Mortgage
- Debt Consolidation Mortgage
- HELOC
- Home Equity Loans
- Interest-Only Mortgage
- Investment Property Mortgage
- No Income Mortgages
- Power of Sale in Ontario: Your Options
- Private Mortgages
- Residential Mortgage
- Retirement Mortgage
- Reverse Mortgages
- Second Mortgages
- Secondary Suite Mortgage
- Self-Employed Mortgage
- Spousal Buyout Mortgage
Bad credit mortgage questions
Find out what your home qualifies for
Approval based mainly on your home equity. Income proof optional. A straight answer, subject to approval.