These days, most non-prime mortgage rates are at least two to three percentage points above prime (bank) rates.
So, if you’re a mortgaged homeowner with credit problems, unprovable income or an abnormally high ratio of debt to income, you’ll want to get back to being a credit-worthy borrower fast. If you don’t, interest expense could suck the life out of you.
Some lenders make transitioning from blemished credit to good credit easier (and cheaper) than others. Home Trust is one of them.
If you’ve got credit problems and/or can’t pass the mortgage stress test and/or can’t prove your income, there are lots of lenders that might finance you. But almost no one offers the flexibility Home Trust does.
The company does things that most other lenders don’t, such as:
That last one should matter to less-creditworthy borrowers. Such folks typically get short-term “alternative” mortgages while they’re working to make themselves creditworthy (i.e., building their credit score, paying down their burdensome debts or creating a track record of provable income). When such homeowners are once again considered a prime borrower, they can then get cost-effective insured/insurable mortgages without changing lenders and paying legal, appraisal and discharge costs (which can be as high as $1,500).
Home Trust even lets such borrowers get great insured rates if their home is worth more than $1 million, the normal insured mortgage property value limit. The stipulation is that the property must have been “default insurable” at the time it was financed (e.g., if it was purchased before October 17, 2016, it likely qualifies).
The takeaway is this. If you:
consider a lender that offers both non-prime (alternative) mortgages and low-cost prime mortgages like Home Trust. If the rate and fees are low enough, pick a lender that offers both types of mortgages. It could save you money and time at renewal.