Yes, you can get a mortgage with bad credit in Canada. Your score decides which kind of lender will say yes. With a score of about 600 or more, a B-lender such as Home Trust, Equitable or Haventree may approve you at 6.5-9%. Below that, or with recent collections, a private lender lends on your home equity at 7.49-10.99% plus fees. Some lenders have no minimum score at all: VWR Capital and Shelter Lending say so on their sites. You need about 25% equity for a private first mortgage.

What counts as bad credit

Canadian credit scores run from 300 to 900. Most banks want 680 or more. Lenders usually treat a score under 600 as bad credit. Lenders also look at what is on your report, not just the number:

Late payments in the last 12 months
Collections or judgments
A consumer proposal or bankruptcy, active or recent
Very high balances on your cards

Which lender for which credit score

Credit score	Who will lend	Typical rate, November 2026	What they need
680+	Banks and credit unions	4.5-5.5%	Proven income, stress test
600-679	B-lenders: Home Trust, Equitable, Haventree, Community Trust, RFA	6.5-9% + 1% fee	20% equity, bank statements
500-599	Some B-lenders (MCAN has a program for scores under 500), private lenders	7.5-11% + 2-4% fees	25-35% equity
Under 500, or recent collections	Private lenders and MICs (VWR Capital and Shelter Lending publish no minimum score)	8-12% + 2-4% fees	30-35% equity, clear exit plan

Ranges for files we place. Your rate depends more on equity than on score. Checked on lender sites, 5 November 2026.

What a bad credit mortgage costs

Take a $400,000 private first mortgage at 9.49% for 12 months. Interest is $37,960. A 1.5% lender fee, a 1% broker fee and $2,500 for legal and appraisal add $12,500. The total is $50,460, an APR of about 12.6%. A B-lender would charge about $30,000 for the same year. That is why we always check the B-lender first.

How to get a mortgage with bad credit

Know your equity. Value minus what you owe. That is the number that matters most.
Get your credit report. From Equifax or TransUnion. Fix any mistakes first.
Talk to a licensed broker. We try B-lenders first, then private lenders.
Plan the exit before you sign. Usually 12 months of on-time payments, then a B-lender refinance.
Rebuild while you wait. Pay every bill on time. Keep card balances under 30%. Open a secured card if needed.

The way back to a bank

A private mortgage with bad credit should last 12 months, not years. After 12 clean months, most borrowers can move to a B-lender. After two more years of clean credit, many can move to a bank. See the month-by-month exit plan.

Bad credit mortgage questions

Can I get a mortgage with a 500 credit score in Canada?

Yes, if you have enough equity. A private lender will usually lend up to 65-75% of your home's value. MCAN also runs a B-lender program for scores under 500.

Do private lenders check credit?

Most pull your report, but they lend on equity. Some, like VWR Capital and Shelter Lending, publish no minimum score.

Will a bad credit mortgage hurt my score more?

No. Most private lenders do not report to the credit bureaus. Paying off cards with the loan usually raises your score.

Is there guaranteed approval for bad credit mortgages?

No. Anyone promising guaranteed approval is a red flag. The Canadian Anti-Fraud Centre lists "guaranteed" loans and up-front fees as scam signs.

Sources. Equifax Canada and TransUnion Canada score ranges · lender websites (MCAN, VWR Capital, Shelter Lending, Home Trust, Equitable, Haventree), checked 5 November 2026 · Canadian Anti-Fraud Centre loan scam bulletin · Mortgage Directory private rates, October 2026.

Real people, not a call centre

Talk it through with a licensed broker before you decide

Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.