Get The Best Mortgage Rate – By Using Your Credit

One of the most important ways to get the best mortgage rate is by building an excellent credit history and score. There are several elements to get the best mortgage rate. One of them is having the minimum down payment if you are purchasing a home. The drawback is that you have to pay for mandatory CMHC insurance. The next one is having good employment history or guaranteed income. The last one that many people don’t consider as much is credit. Or they may consider it, but too late. It takes time to build credit.

Check Your Credit

The first and most simple step you should take long before thinking about buying a home is to check your credit score. There are many ways of doing this online nowadays. And it’s free! Credit Karma is one good example. Do you know that 60% of people don’t check their credit scores before visiting their mortgage broker or the bank?

How Does Your Credit Influence Your Rate?

The better your credit, the less risk for the bank. Less risk means you get the best mortgage rate. If your credit score is 650 or higher, you will likely get a decent rate. If your score is 680 or higher, you reach another threshold that will improve. A score of 720 or higher will get the best mortgage rate. If your score is lower than these levels, talk to us. We can help you with strategic ways of boosting your score. But it takes time so start early!!!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

If you would like to apply for a mortgage online, please follow this link.

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