Many Canadians wonder if it’s possible to get a mortgage with collections on their credit report, and if you’re among them, you’re certainly not alone. The good news is that obtaining a mortgage with collections is indeed possible, and often there are flexible solutions available.

If the collection was a one time mistake, like an overlooked bill that has since been paid, lenders may be willing to overlook it, particularly if the rest of your mortgage application is strong. At The Mortgage Firm, we partner with lenders who understand that everyone faces financial challenges and that past mistakes shouldn’t necessarily prevent future homeownership.

However, if you have multiple collections or a history of missed payments, traditional banks might be more cautious. In these situations, alternative lending can be a valuable option.

Alternative lenders, also known as B-side lenders, specialize in providing mortgage solutions for individuals with less-than-perfect credit or non-traditional financial circumstances. While their interest rates might be slightly higher, they offer the significant benefit of approval even with collections on your record. As an alternative lending specialist here in Saskatoon, I work with a diverse network of lenders who consider your overall financial picture.

If you already own a home, refinancing your mortgage can be a powerful strategy to pay off collections and other debts. This can help clear your credit report, improve your cash flow, and potentially open doors to better mortgage options down the line.

The bottom line is that while it’s possible to get a mortgage with collections, the best approach depends on your specific situation. Whether you have a minor past issue or a more complex credit history, there is usually a path forward. The key is to work with someone who specializes in alternative lending and has connections with the right lenders. For more videos like this one check me out on youtube.