How to Refinance Your Mortgage with Bad Credit in Ontario

Have you been told you can’t refinance because of bad credit? In Ontario, that’s not necessarily true. If you’ve been rejected by your bank, it doesn’t mean you’re out of options. With the right approach and the right broker, you can refinance your mortgage even with poor credit and unlock your home’s equity to regain financial control.

Why Bad Credit Happens

Life happens. Whether it’s job loss, missed payments, divorce, or illness, many homeowners find themselves with credit scores below 600. Unfortunately, that’s often the cutoff for traditional banks.

But lenders outside the big banks alternative and private lenders are more interested in your equity than your score.

How Refinancing with Bad Credit Works in Ontario

A refinance replaces your current mortgage with a new one, often at a better structure. You can:

• Access up to 80–85% of your home’s value
  
• Pay off high-interest debt
  
• Stop a notice of sale or foreclosure
  
• Free up cash flow

Instead of focusing on your credit history, alternative lenders consider:

• • Property value
    
  • Loan-to-value (LTV) ratio
  • Your ability to make payments going forward

When Does It Make Sense?

Refinancing with bad credit is ideal when:

• You’re carrying high-interest debt
  
• You’re behind on mortgage payments
  
• You need to avoid foreclosure or power of sale

You want to simplify your finances into one monthly payment

Real Story: Rebuilding from a 520 Credit Score

Nick from Barrie had a credit score of 520 after a period of unemployment. His mortgage was falling behind, and the bank wouldn’t help. Burke Financial secured him a refinance through a private lender in 48 hours, using his home equity. He paid off $60,000 in debt and reduced his monthly payments by over $1,000.

How to Prepare Your Application (Even With Bad Credit)

• • Have documents ready: mortgage statement, property tax bill, ID, income proof
    
  • Know your equity: the more equity, the more flexible your options
    
  • Be transparent: explain your situation brokers will advocate for you
  • Work with a broker: they’ll present your file to lenders that specialize in your scenario

Why Banks Say No And Brokers Say Yes

Banks must follow strict guidelines under federal mortgage regulations. Even one missed payment can disqualify you. Mortgage brokers, on the other hand:

• Work with alternative lenders who take a broader view
  
• Have access to private funds for urgent solutions
  
• Can help you refinance in as little as 24–72 hours

Don’t let bad credit keep you stuck. Refinancing is not just for people with perfect finances it’s often the key to fixing your finances. If you’re in Ontario and need to refinance, talk to a broker who understands your options and can act fast.

Struggling with debt or denied by your bank?
Burke Financial helps Ontario homeowners refinance, even with bruised credit.

📞 1-866-702-9394
🌐 www.burkefinancial.ca