Credit 101

What is a credit score anyway?
It indicates a person’s credit worthiness (poor, fair, good, excellent, etc.) in comparison to others.
A credit score tells the lender how much of a risk you are, which also affects how much you’ll pay for your mortgage.
Scores range from 300 to 900 (the perfect score).
The average Canadian adult has a credit score of 700 and only 11% of Canadians rank above 800!
All you really need is 680 – 800 to get the best mortgage rates.
Even if you have 600 you likely can still get a decent deal on a mortgage if you can prove income and haven’t had any delinquencies in the last year.
1 out of 5 Canadians are in this boat…
A “B” client is someone that has issues with their credit and the banks have not liked what they have seen.
Good news!  There are lenders that are willing to give to the credit challenged!  Especially if you have a big down payment.
Mortgages for the self-employed or for rental properties require higher scores. This table shows the approximate effect of different scores on mortgage rates.
I have much more, and would love to invite you to view the full presentation I gave on this topic here:

I invite you to get in touch with me to go over your options when it concerns your credit score and securing a mortgage.