June 8, 20263 min read
For many Canadian homebuyers, this question comes up before they are ready to make an offer. Credit can affect both mortgage eligibility and pricing, but the relationship is not a simple chart where every extra point automatically earns a lower rate.
What lenders actually look at
Here is what matters most:
- Prime lenders typically look at the overall credit report, not only the headline score.
- Payment history, utilization, credit age and recent inquiries can all influence how the file is viewed.
- Once a borrower clearly meets a lender's prime-credit requirements, other factors may matter more to the final product and rate.
- A strong score does not compensate for insufficient income, unacceptable down-payment sourcing or a property that falls outside policy.
Review credit early so there is time to correct errors or reduce balances before a live purchase.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
Request a rate quote