At Lendworth, we believe everyone deserves a shot at owning — even if your credit history is bruised. With our equity-based bad credit mortgages, you can use the value of your property instead of a perfect credit score to qualify for financing.
Why Credit Score Isn’t Everything
Traditional lenders — big banks and credit unions — typically rely heavily on credit score, income history, and debt ratios when approving a mortgage.
A credit score below 600 is often considered “poor” in Canada, which can shut you out of standard mortgage programs.
Conventional lenders may view you as “high-risk,” even if you’ve stabilized income or own valuable real estate.
But here’s the truth many people don’t realize: your home’s equity — the difference between market value and what you owe — can be a powerful asset. That’s the idea behind “equity-based” financing.
What Is an Equity-Based Mortgage — And Why It Works for Bad Credit
An equity-based mortgage evaluates your property’s value and the equity you’ve built instead of putting the spotlight solely on your credit history. Because the loan is backed by something tangible (your home), lenders are more flexible, giving borrowers with weak credit a second chance.
Compared to traditional mortgages underwritten purely on credit, equity-based options:
Offer a path to financing even if your credit score is “poor.”
Allow you to tap into the value in your home — ideal if you already own property or are refinancing.
Potentially require a larger down payment or slightly higher interest, but still provide real access where traditional lenders say “no.”
How Lendworth’s Bad Credit, Equity-Based Mortgages Differ
At Lendworth, we specialize in connecting you with flexible, understanding lenders who value what you own — not just your credit score. Here’s why our bad-credit mortgage solutions stand out:
Focus on your equity instead of your credit history. Even if your credit score is less than ideal, your home’s value can act as collateral.
Options to refinance or tap into existing equity. Whether you’re buying anew or already a homeowner, we can help you unlock home value.
A second chance to rebuild credit. With consistent mortgage payments, you start rebuilding your financial history — potentially improving your credit over time.
Who Could Benefit Most from This Approach
You might be a great candidate for an equity-based bad credit mortgage if you:
Have a credit score under conventional thresholds (e.g. below 600).
Own a home already and have built up equity.
Need to refinance, consolidate debt, or simply get better cash flow.
Are willing to accept slightly higher interest rates or a larger down payment up front, in exchange for access.
Steps to Get Started — And Succeed
Assess your home’s value and equity. Knowing how much equity you have is key — it’s the foundation of the application.
Gather documentation: proof of property value, mortgage balance, income stability, and any pertinent financial info.
Work with a mortgage broker or lender who understands bad credit. That’s where Lendworth steps in — we help match you with the right lender.
Be realistic about terms. Bad credit + equity-based financing often means higher rates or larger down payment — but better than being shut out.
Commit to rebuilding. Regular, on-time mortgage payments can slowly rebuild your credit profile.
Don’t Let Poor Credit Define Your Housing Future
Life happens — from job loss to unexpected expenses, many Canadians find their credit score less than ideal. But it doesn’t have to define your future. With Lendworth’s bad credit, equity-based mortgage options, you still have a shot at home ownership.
If you’ve got equity, we’ve got a plan. 💡
Ready to unlock your home’s potential? Contact Lendworth today and see how far your equity can go.