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Bad credit mortgage

Subprime mortgages are home loans provided to borrowers who do not qualify for the best market interest rates because of their deficient credit history. These loans may include loans on certain types of investment properties and certain types of self-employed borrowers.

As a subprime loan is risky, it carries a higher interest rate than prime mortgage loans. The interest rates for such loans are normally 1.0% to 2% higher than the rates from the banks. Subprime mortgages are risky for both lenders and borrowers due to the combination of high interest rates, poor credit history, and weak borrowers' financial situations.

Subprime borrowers

Subprime offers an opportunity for borrowers with a less than ideal credit record to gain access to purchase homes. Subprime lending to poor credit borrowers has enable many home buyers to buy their homes. Many would have missed the opportunity to buy their homes at lower prices while trying to rebuild their credit. The decision is either to go with a subprime loan at higher interest rates or delaying for too long that house prices are out of reach.

Most home owners after a period of one or two years of maintaining a good payment record, they can be approved and switch their mortgages to other prime lenders at obtain prime interest rates and gain credibility to move onto mainstream prime rates financing.

For more information on how to be approved for a home mortgage in the Greater Vancouver and Fraser Valley, kindly call James Wong at 604-721-4817 or click on this link Vancouver Home Mortgage.