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Simply put: yes, your credit score does affect your interest rate.

With ever-changing mortgage lending rules, there ends up being some increased complexity in the mortgage marketplace.  One of those changes that has happened over time is risk-based pricing. Basically, lenders are beginning to offer different rates based on a borrower’s credit score.

This has not been adopted with every lender yet, but will likely become a lot more common. A quick review of how your credit score works would be helpful.

As always if you have any questions on your credit score, or anything else mortgage-related, please don’t hesitate to contact me.

Your Credit Score

  • Payment History 35% – Late payments will lower your score
  • Account Balances 30% – High balances will lower your score
  • Credit History 15% – Older credit will score better than newer credit
  • Credit Checks 10% – Too many credit checks can lower your score
  • Type of Credit 10% – It is best to have more than one type of credit for the best possible score

What Is A Good Credit Score For Mortgage Purposes?

Generally, anything over 700 will give you access to the most lending programs and options.

How Do I Check My Credit?

There are two main credit reporting agencies in Canada: Equifax and Transunion.
Both provide free and paid access to your credit report.

Want to better understand how to increase your credit health? Give us a call at (647) 996-6748 or email us at and we’d be happy to help you with your options!

Inderraj Saini

About Inderraj Saini

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