|
Do you know what your credit score is? You might be
surprised what you will find out.
Before
you apply for your bad credit mortgage Canada, you should
check into your credit score. A credit score helps a
lender determine the likelihood of default on your Canadian
mortgage.
It can be maddening when you go into your bank, or speak
with your mortgage broker and find out that something is
on your credit report that you did not anticipate.
Perhaps you thought a bill was paid years ago, but it
wasn't. Or perhaps a creditor put you into
collection, and you were not aware of it. In either
case, the result will be that you could be turned down for
your Canadian mortgage, or you may receive a mortgage, but
with a much higher interest rate.
With
a credit report, the computer generates a score based
solely on your credit report. The scores usually range
between 600 to 900. You'll sometimes hear this referred to
as a BEACON score. The higher the score, the less likely
you are to default on the proposed loan payments or your mortgage
Canada. Bankers and lenders usually have no
problem lending to you if your score is 680 and above.
Your
score is lowered by slow payments, credit cards at or near
their limit, and the number of recent inquiries into your
credit history. If you are applying for a
mortgage Canada, make sure that you understand that
having many lenders checking your credit while you are "shopping" for the best mortgage
rate in Canada can negatively affect your credit if not done
correctly.
If you have equity in your property, a Canada home loan can be your
safety net when things go financially wrong in your
life. So make sure that your credit rating is in
good shape so that you can take advantage of the equity in
your home at a good interest rate.
|
