Many Lenders use credit bureau scores as a key part of the approval process. Credit scores are a statistical method of predicting a consumer's financial risk over a period of time. Your previous credit behavior is used to determine your credit score which is primarily derived by payment history, outstanding debt, credit account history, recent inquiries and types of credit on your credit bureau record. The two credit reporting agencies in Canada—Equifax and TransUnion—determine your credit score on a scale from 300 to 900 – the higher your score, the better.
The five main factors looked at by lenders are...
In order to qualify for mortgage financing you need to have an established credit history and credit score at Equifax or Trans Union credit reporting agencies in Canada. Lenders use this information to determine how likely you are to repay your mortgage loan.
In Canada, if you are putting less than a 20% down payment on a home, you will need a minimum credit score of...
Your credit score is a three-digit number ranging from 300-900 that tells future lenders how risky it is to lend you money based on your history of making debt payments.
There are many misconceptions about what it takes to keep your score high. Henrietta Ross, the CEO of the Canadian Association of Credit (CACCS) helps us sort fact from fiction...