Taya Weiszhaar, Mortgage Agent

705.758.1115 | 1.866.445.4021 | taya@mortgagegrp.com

February 25, 2018
1 Year Closed : 2.99 %
3 Year Closed : 3.04 %
5 Year Closed : 3.14 %
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Credit 101

If you have credit concerns or unsure of how your credit will be viewed;

please call me direct to discuss specifics, Let's Talk! 1 866 445 4021.

There are many variables involved and I can be a lot more helpful to you if we talk directly.

I am experienced in this area and have helped many mortgage borrowers correct their credit reports;
sometimes very quickly; thus helping them to get the best interest rate the market has to offer.

Below is a general guideline only; some helpful information for you to start with.

A Credit Score is a three digit number formulated by the Credit Bureaus; providing a system of measurement for banks and lenders.

Many variables and factors from your credit report are gathered to create your personal Credit Score.

Lenders use credit scores because it provides a fast and objective measurement in determining the risk associated to lending money. How you manage your credit, if you are a good credit risk or a poor credit risk.

It is important you know what affects your score.

Beacon scores range from 300 to 900 (a perfect score). The average Canadian adult has a Beacon near 720.

Many people think you need to be in the 800's to get the best mortgage rates. That is not true. Only a small percent of Canadians rank above 800, and it's virtually unheard of to see a Credit Score near 900.

The best place to be is 720 or above to get the best mortgage rates. Even 650+ will most often get you the best rate!  600 and above is common as well, however, your choices are getting more limited and your lower score will be scrutinized closer.  All the more reason we should work together to ensure your success of an approval.

If your score is below 650, there's usually issues with your credit report that requires a closer overall look by the lender. 1 out of 5 Canadians are in this boat, but don't despair!  Depending on varying factors, you will most likely still qualify for fully discounted rates.

Below 600 is a concern and requires a detailed analysis and typically does not qualify for a discounted rate.

Your credit can be fixed and improved and this is something I would be happy to help you with. There are also lenders available in today's market that will work with challenged credit applicants and the interest rate is generally set on a case by case basis.

But as always your entire mortgage application determines your interest rate and approval, not just your credit.

Note; length of time you have credit reporting also effects a ‘True' Credit Score.

Assuming you want to improve your credit you should know how the credit score formula is calculated.

Here are the main criteria;




Payment History


Factors in the recency of, and number of, payments over 30 days late, collections, judgments, and bankruptcies. A single 30-day late payment can drop your score 15-20 points.

Current Debts


Considers how much you currently owe (in absolute terms and compared with your credit limits), how many creditors you owe money to, and how much you could owe if you maxed all your available credit.

Age of Accounts


The longer your accounts have been opened the better. You generally need at least three accounts over one year old.

Type of Credit


Bank loans, credit cards, and revolving credit accounts all impact you differently.

Credit Inquiries


Numerous credit applications in the past 12 months is a no no. This is a big benefit of mortgage brokers, who pull your credit only once for multiple lenders.

Besides the obvious (bankruptcies, judgments, collections etc.) the top Credit Score killers are:

    Payments over 30-days late
    Maxing out credit cards (i.e. using over 75% of your credit limit)
    Many inquiries (too much shopping around can have a negative effect)

If you have a lot of maxed out cards, bring them at least under 75% - 50% of the limit (below 30% is best).
Your credit score can jump considerably in as little as a month.

The moral of this story is, know your credit. Over 70-80% of Canadians have mistakes on their credit report. You should be checking your credit report a minimum of once per year to ensure the information on your credit report is accurate.

The two main credit reporting agencies in Canada are;

Equifax Credit Bureau

TransUnion of Canada Credit Bureau

Both of these agencies provide you with options to obtain copies of your credit report and personal credit score and lots of valuable information to help you learn more.

Remember, this information is a general guideline only and there are likely more choices available to you.     Call or email me today!  Let's Talk...1 866 445 4021 or taya@mortgagegrp.com

"You Have Choices...Mortgage Solutions that Fit Your Life"

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