A past offence should not prevent you from getting your life back on track, but many people come across various obstacles if they have a criminal record. Such difficulties include getting a mortgage or a loan and getting home insurance.
Very few people can afford to buy a house outright, which is why they have to turn to a financial institution for a loan, and it is not uncommon to come across criminal record questions in mortgage applications. Therefore, your mortgage application could be denied if you have ever been convicted, especially if your record includes financial infractions, such as fraud or theft. Even if your spouse is the bearer of the mortgage, the application could still be denied. The reason why banks often do not approve mortgages to applicants with a criminal record is that they don’t want to take unnecessary risks (preservation of the property or repayment of the loan).
Apart from getting a loan, people who have a criminal record often find it hard to apply for home insurance. Just like lenders, many insurance companies require a criminal background check before issuing a home insurance policy. If you have a criminal record, an insurer can either refuse to issue you a policy, charge you more for a plan, or give you less coverage.
How to get a loan with a criminal record
Overcoming the above-mentioned obstacles is difficult, but not impossible, and there are certain ways to solve this complicated situation. Banks will look at several factors in determining whether you are eligible for a loan, and there are several ways you can improve your chances of getting a mortgage:
Have regular income
When issuing a mortgage, banks will ask you for proof of employment to verify your income. Make sure you are steadily employed and have a steady income before you apply.
Improve your credit score
Build your credit score to show that you are responsible and that you make your payments in due time.
Obtain a pardon
Getting a pardon in Canada is the easiest way to obtain a mortgage. A pardon will basically seal your criminal record so that it becomes invisible during criminal record checks. Of course, certain conditions must be met before you apply, but once you have a Canadian pardon, you do not have to disclose your past offence with anyone, and it will be much easier for you to obtain a mortgage. To erase your criminal record and apply for a mortgage, simply call 1 (800) 543-2137.