Importance Of A Credit Score In Obtaining A Mortgage In Canada

How Do Credit Scores Affect Your Mortgage Rate?

When looking to purchase a new home, it is most often necessary to take out a mortgage in order to pay for your property. Getting approved for a mortgage can often be a strict and complicated process for those who do not necessarily have all the ideal financial traits to back it up. One of these traits that may get in the way of getting a good mortgage rate – and getting approved for a mortgage at all – is a person’s credit score.

A mortgage credit score will have a huge influence on the rate you’ll get if approved for a mortgage. Typical lenders will look first to a home buyer’s credit score as an indication of how competent they may be at paying off mortgage payments on time and in full. Generally speaking, the higher your credit score, the lower the overall mortgage rate you will most likely be able to acquire. The difference in mortgage rates – and thus in the overall interest payments – between those with good credit scores in comparison to bad credit scores – can be monumental.

Lenders will often look at a variety of factors to determine one’s Canadian mortgage credit score. Some of the more popular factors include:

• Length of time of credit history
• Payment history
• Available credit
• Amount owed
• Types of credit used

Other factors that come into play when assessing and evaluating your ability to get approved for a mortgage and get a low interest rate include:

• Income
• Assets
• Size of down payment

Get the Mortgage You Need at an Affordable Interest Rate

If you are considering buying a home and are looking to get approved for a mortgage, it’s best to have a clear idea of your exact credit rating and how much you can realistically afford. Before looking for your next home, call professional Lethbridge Alberta mortgage broker Jim Black and his team of experts to help you not only secure the mortgage you need, but also help you understand the numbers behind your credit score that inevitably affect the mortgage rate you’ll be approved for. Call today at (877) 394-9422 and get qualified for a mortgage at a great rate!  If you are looking for a great mortgage rate Ontario, call the team at Mortgage Medics at(289) 837-1518.  These award winning mortgage experts work for you – not the bank – to find you the best products and rates.