At Capital Mortgages in Ottawa we strive to be your personal mortgage broker for life.

Beacon scores will definitely dictate the mortgage amount that lenders are going and willing to offer. This is also the determinant of what you are going to pay if your mortgage request goes through. It is therefore important to know the basics of beacon scores as this will come a long way in understanding how it works and how to make it work for you.

Beacon scores range from 300-900. Most people think that the best score to get your mortgage is an 800 plus score. Approximately only about 11% of Canadians have hit this score. In addition, it is virtually impossible to find people who are close to reaching the 900 mark. At around 600, you can get a consumable deal but you have to prove your income level and not have had any income turbulence for at least the past one year.

Dating back to October 15, 2008 a less than 20% rate payment on a mortgage calls for a 600 score. If your score is below 600, it means you have issues with your credit. This places you in the “B” client category. The good news is that your credit can be corrected and some lenders will be ready work with you that is if you have a large and enough down payment. People with as low as a 450 score have been able to acquire a reasonable mortgage.

It is important to always bear in mind that the score required largely depends on the type of mortgage you are looking for. Normally, those who require a self-employed mortgage or a rental property require a high beacon score.

Low profile beacon scores can be attributed to various factors. Many credit enquiries is one of the factors. Applying for numerous credit considerations has a huge negative impact on your beacon score. This is a platform for mortgage brokers to pull your credit for many lenders. Payment behavior also counts. If you are fond of paying your debts late, be sure of losing 15-20 points and the more this happens the deeper you dig your own grave! The amount of time your accounts have been open also has a toll on your score. The longer they have been opened the better. Lastly, the number of creditors and the types of debts you have depicts a lot.
The only way to be deemed fit for a mortgage is to know your score and manage that score wisely!

Contact one of our Mortgage experts today and we can discuss your beacon score in more depth.

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