Credit Repair and Debt Consolidation

“Their credit report reads like a horror novel, but the house was just renovated and is worth a lot…”

Here’s what happens when life takes a wrong turn. A bad business venture. Workplace Injury. That divorce that dragged on for two years. Suddenly your credit score looks like a batting average and the banks won’t even return your calls.

But here’s the thing – none of that changes what your house is worth. The market doesn’t care that you had a rough patch. Your equity is still there, sitting quietly, waiting to help solve the problem.

The credit repair paradox

Banks have this funny relationship with credit scores. They’ll happily lend you money when you don’t need it, but politely slam the door when you actually do. It’s like umbrellas that only work when it’s sunny.

Your client with the 520 credit score? The one who’s been making minimum payments on five different credit cards at 19.99%? Banks see a number. We see someone drowning in expensive debt who owns a $500K house with a $200K mortgage.

The math here isn’t complicated. It’s just math the banks aren’t allowed to do.

How debt consolidation actually works (when you’re already bruised)

Forget trying to explain to Big Blue or Big Green Bank why your client’s credit went sideways. They’ve got algorithms that auto-decline before a human even sees the file.

Here’s our approach:

1. Look at the whole picture – Not just the credit score, but the story behind it
2. Add up the expensive debt – Credit cards, payday loans, that car loan at 23%
3. Check the equity cushion – At 65% LTV max - location dependant - there’s room to breathe
4. Build the comeback plan – 12-18 months to rebuild, then back to traditional lending

We’re not reinventing lending. We’re just willing to look past the score to the solution.

Who uses credit repair mortgages?

The small business owner who put everything on personal credit cards to keep the doors open during a slow season. Now they’re paying $2,000 a month in minimum payments on debt that would cost $600 a month as a mortgage. Their credit’s shot, but their business is back.

The divorcee who got stuck with joint debts but only half the income. Credit score tanked during the separation. They kept the house but can’t keep up with the credit card payments their ex ran up. The equity’s there to fix it all.

The medical emergency survivor who chose treatment over credit scores. Collections notices from three different medical providers. Banks see delinquency. We see someone who prioritized living over FICO scores.

The contractor who got stiffed on a big job and had to max everything out to keep their crew paid. Credit’s wrecked, but they’ve got three new contracts lined up. They need six months of breathing room, not a lecture about financial responsibility.

Why traditional lenders simply can’t help

It’s not personal. A 500 credit score triggers an automatic “no” in their system. Doesn’t matter if you’ve got 60% equity and a solid plan. The computer says no, so no it is.

Banks don’t even get to the part where they find out your client’s credit tanked because they were caring for a dying parent. Or building a business. Or going through chemo. The number is the number.

We’re provincially regulated, and our funds come from our investors - we’re not back-end insuring it. We get to actually think.

The uncomfortable truth about rates

Let’s be honest here. Our rates aren’t bank rates. If your client’s paying 19.99% on credit cards plus monthly fees, our 10-12% looks like a gift. If they’re juggling payday loans at rates that would make a loan shark blush, we’re practically charitable.

But here’s what actually matters: Consolidating $40K of high-interest debt into a mortgage at our rates can free up $1,500 a month. That’s $1,500 to rebuild. To breathe. To stop the bleeding.

The Tekfund difference

We’ve been lending in BC for over 20 years. Long enough to know that good people hit bad patches. That a credit score is a snapshot, not a life sentence.

Your client in Williams Lake with the bruised credit? They don’t need another decline letter. They need someone who understands that paying 20% on credit cards while sitting on home equity is like bleeding out next to a first aid kit.

Quick example

Restaurant owner in Penticton. COVID crushed them. Maxed out everything to stay afloat. Made it through but the credit’s destroyed.

• Property value: $450K
• Existing mortgage: $180K
• High-interest debt: $65K across six cards and two loans
• Monthly payments before: $1,950 minimum payments
• Proposed mortgage: $245K (54% LTV)
• Monthly payment after: $2,050 (but paying down principal, not just interest)
• Cash freed up monthly: $1,900
• Exit strategy: Rebuild credit for 18 months, then refi with a credit union

Banks need a 680 credit score to even have a conversation. We need 48 hours to say yes.

A note on second mortgages

Sometimes the numbers work better as a second. Keep the good first mortgage, add a second to clear the toxic debt. We’re flexible because real life is complicated.

Your client keeps their 3.5% first mortgage and adds a second at 12% to pay off cards at 24%. Still wins. Still rebuilds. Still sleeps at night.

The bottom line

Credit repair isn’t about judgment. It’s about math. If your client’s paying more in interest than they’d pay us, and they’ve got the equity to make it work, the rest is just paperwork.

Bad credit plus good equity equals opportunity. The banks can’t see it. We can’t miss it.

In a province where a medical emergency or business setback can derail anyone, sometimes you need a lender who looks at where you’re going, not where you’ve been.