Mortgage Blog
Canada's Mortgage Experts
Rates Based on My Credit Score?
May 1, 2017 | Posted by: Dana Stauber
Risk-Based Pricing & Credit Scores
The recent mortgage lending rule changes have created increased complexity in the mortgage marketplace. One of the newer changes is risk-based pricing. Basically, lenders are beginning to offer different rates based on a borrower’s credit score. This has not been adopted with every lender yet, but will likely become a lot more common. A quick review of how your credit score works would be helpful. As always if you have any questions on your credit score, or anything else mortgage related please don’t hesitate to contact me.
Your Credit Score
Payment History 35% - Late payments will lower your score
Account Balances 30% - High balances will lower your score
Credit History 15% - Older credit will score better than newer credit
Credit Checks 10% - Too many credit checks can lower your score
Type of Credit 10% - It is best to have more than one type of credit for the best possible score
What Is A Good Credit Score For Mortgage Purposes?
Generally anything over 700 will give you access to the most lending programs and options.
How Do I Check My Credit?
There are two main credit reporting agencies in Canada: Equifax and Transunion.
Both provide free and paid access to your credit report.
www.equifax.ca
Questions on your mortgage, or want to compare your mortgage to what is currently available? Please email me
