Why Do Private Mortgage Lenders Value Credit Scores?

Not every mortgage broker in Toronto knows every one of their clients or prospective borrowers personally to vouch for their financial stability. Even if they did, Ontario’s mortgage approval rules mandate that certain checks be conducted prior to approval of a mortgage. And just as you, as a potential borrower, will consider the benefits of going with a mortgage broker vs bank lender, prospective lenders conduct their own diligence too.

Part of that diligence is to look at your credit score. Here’s why?

What private mortgage lenders see

Before they qualify you for the lowest mortgage rates available, lenders check your credit report to get a sense of:

Outstanding loans and other debt: The lower this amount is, the more likely it is that your mortgage application will be approved
Payment history: A key component of your credit report indicates how punctual you have been in repaying amounts owed. Lenders like to see on-time and in-full payments. This is the history that qualifies applicants for some of the best mortgage rates in Toronto
Who else has checked out your history recently: When individuals and institutions check your credit history, there is a record of such inquiries in your credit file. The more credit-enabled goods and services you apply for, the lower your chances get to qualify for better rates from your mortgage broker in Toronto

As a prospective borrower, there is one thing that you should be aware of: If you have bad credit, NO ONE OTHER THAN YOU can “fix it”. If someone offers to “fix” your credit score for a fee, they are probably out to scam you.

Taming run-away credit scores

Of course, there are numerous strategies to tame your wild credit score and ensure you get the lowest mortgage rates possible. As one of the leading private mortgage lenders in Canada, the advisers at Mortgage Genie know all of those strategies, and willingly advise their clients on credit score repair. The critical point that you should be aware of is that, don’t expect to qualify for favourable mortgage rates in Toronto just a few weeks after you commence your credit repair plans. It may take at least a year or more.

The best advice: Consult with a professional NOW!