Select Page

Improving Your Credit Score to get Best Mortgage Rates

Improving Your Credit Score to get Best Mortgage Rates

Some people may find that their credit rating needs improvement if they are going to lock in the best mortgage rates Canada . In this instance, you can help improve your credit score by:

  • Correcting any errors or misinformation that is showing up on your credit report.
  • Paying all your bills on time.
  • Cutting up or putting away your credit cards so you can focus on repaying debt rather than incurring it.
  • Consolidating your loans and credit card debt into one larger loan.
  • Avoiding going over the limit on your credit card. A high balance will have a greater impact on your credit score.
  • Restricting the number of applications for credit that you make. Too many inquiries into your credit with a short time may have a negative impact on your credit score.
  • Contacting your lenders and make inquiring about alternate repayment solutions if you need to do so.
  • Developing a plan to reduce your debit that includes evaluating your lifestyle and the money you are spending and puts any “found” money toward debt reduction.
  • Consulting a credit counselor. Canada has many not-for-profit agencies that can help you assess your options.

Even if your credit rating is not stellar, it doesn’t mean you cannot qualify for a mortgage loan. There are many mortgage brokers out there that will be willing to finance your loan, just be warned that this can come at a high cost since their interest rates are sure to be higher. A best mortgage broker can help you find an institution with the best interest available to you. This will let you assess whether home ownership needs to be postponed for a complete of years, or whether you can take the loan now and adjust the mortgage at renewal or after a couple of years clean payment history.