Credit score canada
Mortgage Credit Score
If your credit score is low, there are still options. Lee Anne of Home Loans Ontario specializes in hard to place mortgages. We work with you to find a lender, and revue your options to find low rates now and a plan to improve your score and get even better rates.

If your credit history is damaged, you are self employed, have no proof of income, are new to Canada, or other factors that make the banks turn you down - call Lee Anne for assistance.
Credit Score Canada - Lee Anne Taylor with Dominion Lending makes mortgages easier
 

If you have bad credit and are looking for a mortgage in Toronto, Oakville, Burlington, Mississauga, Milton, Waterdown, Binbrook, or Greater Hamilton, call Lee Anne today at (905) 336-8948 for a free evaluation.

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Mortgage Credit Score Ontario

  • Mortgage Credit Score Canada

    Your Mortgage Credit Score

    When you shop around for a mortgage on your own, each lender will pull a credit report to do their evaluation. Lenders will be looking at several factors including your income; your debts; your employment histor;, your credit history; the value vs. purchase price of the home you are buying; and your down payment. Many equity based loans are available if you have a large down payment - even with bad credit. 

  • We only pull one credit report to shop your mortgage over all our lenders. 
    Why is this important?   Having many credit reports pulled in a short period of time can lower your credit score and scare off potential lenders.  Many mortgage products are also not available to the general public. With free service and expert unbiased advice, it makes sense to go with a mortgage expert to find you the best options.


  • There are many ratios and important factors that the lender will be looking for: One is your debt to income ratio (the lower the ratio - the better - but it should not exceed 44%). Another ratio is your housing expense ratio, which means your house payments (mortgage, taxes, condo fees, etc.) should not be higher than 32% of your gross income. The buyer will want to see a good credit history of on-time payments a stable income history.

    How to improve your credit score
    Before you apply for a mortgage, you need to take a look at your credit report. Your mortgage advisor can help you evaluate the report and suggest ways to improve it. The higher your credit score - the lower the rates, since you will qualify for the lenders' best offers. The first, most obvious factors to fix are any mistakes on your report. Check all information on your report carefully, and contact lenders if you notice mistakes or inaccuracies.

    The average credit score in Canada is near 720, with only 11% of Canadians having a score of 800 or higher (900 is perfect). Your credit score is weighted - meaning not all components have the same effect. Your payment history counts for 35% of your score, so it weighs the heaviest. Next is your current debt load, counting for 30% of your score.

    The age of your accounts counts for 15%, and is considered important since it shows your payment history over time. Accounting for 10% each are your credit enquiries and types of credit. Unsecured credit, like credit cards, is considered 'bad debt', whereas a mortgage is 'good debt' since it is a secured investment.

    Too many credit inquiries can lower your credit score, which is why it is important not to make any large purchases before applying for a mortgage, and why using a mortgage broker (who only needs to pull one report to shop over multiple lenders) is so valuable.