Subprime Mortgage

Glossary

Banking

Subprime Mortgage

Subprime mortgages typically refer to mortgages extended to individuals or companies with low credit ratings, or where credit quality has not been established by formal / accredited processes. A subprime mortgage may not always be one to a poor credit - for example self-certified mortgages are often labelled “subprime” due to the lack of formal credit approval processes and thus greater potential risk of default.

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