Use Your Canadian Credit Bureau Report To Your Advantage!
Your Canadian Credit Bureau report provides crucial infromation in your quest for the lowest mortgage rate in Canada. The primary source of information that the bank has on you is from this report. You need to know how to find the potential problems before the bank discussion so you can be prepared for their questions. Have the your credit report handy. If you do not have it yet, you can get a copy of your Canadian Credit Bureau report instantly, online.
The first thing most bankers look at in your Canadian Credit Bureau is your Beacon Score. This is a summary of your credit worthiness as determined by an automated system at the credit bureau. Many bankers rely heavily on this score for loan/mortgage approvals and the interest rate you qualify for.
If you want the best mortgage rate in Canada, you should plan on having a beacon score above 600. If you have a score over 750 on your credit bureau report and have investmentments in addition to your home, you will be able to choose from the best rates, products and terms. A beacon score over 750 is considered excellent.
If the beacon score on your credit bureau report is below 600, you will face an uphill battle to get a mortgage. This considered a poor score. The rate is likely to be a little higher than normal, depending on your circumstances.
For tips on how to improve your beacon score, ask your Mortgage Broker. If your score is below 700, you should start improving the score on your credit report right away. A beacon score between 700 and 750 is considered good. Quite often, a score of 650 or more can be increased over 700 with a few simple steps. It is worth it to have a score over 700.
Credit scores can change daily. Depending on the situation, it may be fairly easy to increase your score and get approved at a good rate for your mortgage.
There are some lenders who will look beyond just the beacon score in your Canadian Credit Bureau. Some banks will give the more experienced loan officers the authority to approve mortgages if a person has bad marks on their Canadian credit bureau report. A mortgage broker can help find a lender willing to offer a good interest rate if you have issues on your credit bureau report. They have access to a wide variety of sources for you to fund your home purchase. Your REALTOR will have a list of mortgage brokers available.