No Credit BC Mortgages are not impossible to find!

It is possible to overcome the obstacle of a lack of credit history, especially with the number of non-traditional lenders available in British Columbia right now.

Banks will look at unproven borrowers as high risk, since there is no assurance to them that the applicant is financially responsible and able to carry a loan of any kind. Risk is a hurdle, not a barrier and you can get over it in a variety of ways to secure a No Credit BC Mortgage including:

Take on a co-signer

People know people, institutions know numbers. If you have a person with solid credit in your life who trusts you well enough to back you financially, you may be able to significantly lower the bank’s perceived risk by having them sign on to the mortgage.

Apply to a non-traditional lender

The best way to asses if non-traditional options are right for you is to speak with an experienced professional. There are options available, have a broker walk you through the pros and cons of alternative financing.

Provide a large down payment

Typically down payments that exceed 35% of the property’s value assure lenders that the loan is safe and preferable are offered. If you are able to commit that size of down-payment, skip straight to the application phase because a mortgage broker will have options that work for you.

If you can afford to delay purchasing or prefer to pursue traditional options that aren’t currently available, the following is the fastest method to building a solid record:

Establishing Credit

The best way to start of a solid credit history is by credit card. Without any credit history at all, some institutions will grant you a low-limit card that will be instrumental in your building process. In some cases, banks will require that you deposit an amount equivalent to the limit on the card. If you make regular payments on the card and stay within your limit, the bank will typically return the deposited amount after one year.

Within the first year, it is possible to obtain department store credit cards once the secure card is established. Outlets including The Bay, Sears and Home Depot will often issue low-limit cards to people with little or no credit. Be careful though, these cards come with very high interest rates. Be sure to pay off the card every month in order to avoid paying large amounts of interest.

With a year of reliable credit and regular payments established, options such a car financing and lines of credit become available. With a licensed professional, explore how those options are right for you. After two years of building credit and accumulating a down payment for your new home, you may well be in a position to explore some of the more traditional options that the banks offer.