Mortgage Rates

To receive the best mortgage rates, you’ll need a credit score of 680 or better. Potential lenders will analyze any unfavorable information on your credit record, such as missing payments, in addition to your credit score (especially if they have been transferred to a collection agency). You are unlikely to qualify for the best mortgage rates if you have a bad credit rating, which is commonly defined as a credit score below 660. As a result, you’ll need to go with a subprime mortgage lender like Equitable Bank or Home Trust. You’ll almost certainly need to utilize a private lender like WealthBridge if your credit score is below 600. People with poor credit records are welcomed by subprime lenders. They do, however, impose higher interest rates on mortgages. This page’s explanations will assist you in better understanding how your credit score influences your ability to obtain a mortgage.

You’ll need to provide proof of income, such as pay stubs or tax papers like your Notice of Assessment. Even if you produce evidence of income, many lenders may give priority to a borrower who has been employed for at least one year if you have recently begun a new job.

Finally, your application must pass the stress test in order to qualify for the loan amount you want. The stress test assures that you can still pay your mortgage at the qualifying rate, which is a higher rate established by the Bank of Canada. If you were given a 2.25 percent mortgage rate, for example, the lender may do a stress test to determine if you could still make your payments at the qualifying rate of 5.25 percent.