If you’ve been dreaming of owning a home in Victoria but your credit score isn’t exactly sparkling, don’t lose hope. I’ve helped clients in every kind of financial situation, and the truth is, a low credit score doesn’t always mean the end of the road—it just means you may need a different route.
1. Explore Low Credit Mortgage Options
In Canada, we don’t have FHA loans like in the U.S., but there are lenders who work with borrowers who have less-than-perfect credit. Some smaller banks, credit unions, and alternative (“B”) lenders can offer mortgage products to people with lower scores, though the interest rates may be higher.
If you can show stable income and a reasonable down payment—often 20% or more—these lenders may be willing to work with you.
2. Look into Down Payment Assistance Programs
British Columbia has programs and grants designed to help first-time homebuyers. While they may not directly address credit score issues, having assistance with your down payment can make your application more attractive to lenders.
For example, the First-Time Home Buyers’ Program reduces or eliminates the property transfer tax if you qualify, freeing up more funds for your purchase.
3. Work on Credit Repair Before You Buy
Even if you’re eager to jump into the market, a few months of focused credit repair can improve your options dramatically. I’ve seen clients raise their scores by:
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Paying down high-interest debt (credit cards, lines of credit)
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Making every payment on time, even if it’s just the minimum
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Disputing errors on their credit report (you can request your free report from Equifax or TransUnion)
Sometimes, a six-month credit improvement plan can mean the difference between a high-interest “B” lender and a standard bank mortgage with better terms.
4. Be Prepared to Compromise—At First
If your credit is holding you back from your dream home, consider starting smaller. A townhouse or condo can be a more affordable first step into the market. Once you’ve built equity and improved your credit, upgrading to a detached home becomes much easier.
Final Thoughts from a Victoria Realtor
I’ve been selling homes in Victoria for years, and I can tell you this: people buy homes with less-than-perfect credit all the time. The key is to be informed, work with the right professionals, and stay patient.
If you’d like to chat about your options, I’d be happy to connect you with mortgage specialists who work with all credit situations—and help you find a home that fits both your lifestyle and your financial reality.
