Can You Get Pre-Approved with Bad Credit?
If your credit score isn’t perfect, you might think homeownership is out of reach. It’s not. We work with lenders across the credit spectrum, and there’s almost always a path forward — even if it’s not the traditional route.
Understanding Credit Tiers
Lenders are categorized by the credit profiles they accept:
- A-lenders (680+): Best rates, lowest down payments, most flexibility
- Alt-A lenders (600-679): Slightly higher rates, may require 10-20% down
- B-lenders (550-599): Higher rates, typically 20% minimum down payment
- Private lenders (below 550): Highest rates, usually 25%+ down, short-term solutions
The Alternative Lending Path
With credit scores below 600, your options are different — not impossible. You’ll typically need a larger down payment (20-25%) and will work with alternative lenders at higher rates. But here’s the strategy:
We can get you into a home now with a 1-2 year term, then help you refinance to prime rates once your credit improves. For many clients, this stepping-stone approach is the difference between waiting indefinitely and building equity now.
💡 Credit Building
Paying your mortgage on time is one of the fastest ways to rebuild credit. Many of our clients move from B-lender to A-lender within 24 months just by making consistent payments.
What Affects Your Credit Score?
- Payment history (35%): Late payments hurt the most
- Credit utilization (30%): Keep balances under 30% of limits
- Credit age (15%): Older accounts help
- Credit mix (10%): Different types of credit
- New inquiries (10%): Minimal short-term impact
Elevation Mortgage
Brokerage: Mortgage Connection · Licensed in Alberta and British Columbia
Julie & Andy Jeffery — independent mortgage brokers serving Calgary, Nelson BC,
and clients across Alberta and British Columbia.
© 2026 Elevation Mortgage · Independent Mortgage Brokers · Serving Alberta & BC