What actually counts as "bad credit" here
Usually it means a credit score below what an A-lender (typically a major bank) requires, a history of late or missed payments, a past bankruptcy or consumer proposal, or a thin file with not much history at all. None of these automatically disqualify you, they just steer you toward a different type of lender.
What a B-lender actually looks at
B-lenders (a category that includes some well-known trust companies and credit unions) weigh the full picture: income stability, down payment size, property value, and the story behind the credit issue, not just the number itself. A one-time hardship a few years back reads very differently to them than an ongoing pattern.
The trade-offs, honestly
Expect a somewhat higher interest rate and possibly a shorter term (often one to three years) compared to a traditional mortgage. There may be a lender fee as well. It's not the cheapest path, but for someone who'd otherwise be locked out of homeownership entirely, it's a real and often temporary bridge, not a permanent situation.
Getting back to an A-lender later
The common path is: use the B-lender term to rebuild credit and build equity, then requalify with an A-lender at renewal or refinance once your file looks stronger. We map this out with clients from day one, since a B-lender mortgage should usually come with a plan to move off it, not just a way to get in the door.
Worried your credit will hold you back?
Let's actually look at your file together. Bruised credit closes fewer doors than most people assume.
See my real options