So if you have good credit - say 720 - You should be able to snag basically any low rate mortgage you want.
But, if you're in top most percentile, with a Rating of 820+ can you qualify for anything better? Or does your debt/income ratio only go up?
Registered User
Question about Credit Score VS Mortgage rates
So if you have good credit - say 720 - You should be able to snag basically any low rate mortgage you want.
But, if you're in top most percentile, with a Rating of 820+ can you qualify for anything better? Or does your debt/income ratio only go up?
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft
Registered User
The new Gross Debt Service and Total Debt Service ratios apply to everyone equally now that the mortgage rules have changed. 39% and 44% respectively.
Not sure on the interest rates.
See Crank. See Crank Walk. Walk Crank Walk.
Moderator
Your credit score/ credit bureau determines if you can qualify for a mortgage. Depending on the lender, it has nothing to do with the interest rate you can get.
Registered User
kind of.Originally posted by Team_Mclaren
Your credit score/ credit bureau determines if you can qualify for a mortgage. Depending on the lender, it has nothing to do with the interest rate you can get.
If i have a credit score of 620 and you have a credit score of 820 we are going to get the same rate. If I have a score of 610 or under there's a chance I will still qualify BUT I may be subject to a higher rate and possibly require more money down.
What a life.
Registered User
That is correct.Originally posted by el-nino
kind of.
If i have a credit score of 620 and you have a credit score of 820 we are going to get the same rate. If I have a score of 610 or under there's a chance I will still qualify BUT I may be subject to a higher rate and possibly require more money down.
Also the more downpayment the larger mortgage possible, but does the 44% rule still apply?
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft
Registered User
That 44% may be done on an exception. Expect that to drop to 42%.
What a life.
Moderator
Originally posted by el-nino
kind of.
If i have a credit score of 620 and you have a credit score of 820 we are going to get the same rate. If I have a score of 610 or under there's a chance I will still qualify BUT I may be subject to a higher rate and possibly require more money down.
This only applies if you are talking about a having to qualify for a different lender. Say if a major bank can approve you with a 620, you should be able to get the same interest rate as someone who gets qualified with 770.
Registered User
Source? Absolutely nothing from the government indicates this and certainly not less than a month since they adjusted it.Originally posted by el-nino
That 44% may be done on an exception. Expect that to drop to 42%.
See Crank. See Crank Walk. Walk Crank Walk.
Registered User
It used to be :
Lower than 680 beacon TDS maximum 42%, GDS maximum 35%
Over 680 beacon TDS maximum 44%, no GDS ratio requirement
With the new changes over 680 beacon TDS maximum 44%, GDS 39%
Keep in mind that there are some lenders out there that will sometimes make exceptions on these guidelines. Not all the time, but it can happen.
Oh here is the source: http://www.cmhc-schl.gc.ca/en/hoficl...r/hopr_001.cfm
Last edited by el-nino; 07-30-2012 at 11:58 PM.
What a life.
Director of Awesomeness 
If you have a credit score of 740 or higher (along with a host of other requirements/restrictions) you may qualify for a lower interest mortgage from XCEED. I think I read that it was 2.85 5yr fixed.
---
Beyond Bully
TD Bank. 35% down and done.Originally posted by Darkane
That is correct.
Also the more downpayment the larger mortgage possible, but does the 44% rule still apply?
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
Registered User
Variables that affect your interest rate:
- Credit score (once above 620 you are pretty much guaranteed best rates, but not always)
- Verifiability of income: If you cannot prove you make how much you say, be prepared for either a higher interest rate or higher CMHC premium and higher down payment requirements (ie. self-employed and claiming less than the poverty limit will result in higher down payment or rates or both)
-Debt servicing ratios: less than 680 35%GDS/42%TDS; 680+ 39%GDS/44%TDS or 50%/50% through equity lenders but expect a higher rate if you need to go this route (alternative, put down 35% or more and we can increase the ratios to 75%/75% but you will limited to certain lenders so you will get good rates but not necessarily the best.
- Down payment: If you cannot prove where your down payment is coming from expect higher rates through equity or private lenders (minimum 15% down and up). There are ways around this if you have time though.
- Borrowed down payment or cashback expect higher interest rates or slightly higher CMHC premium while these programs are still available (there is talk about losing the cashback program for down payment).
Registered User
I assume that proving where the down payment is coming from is as easy as showing them a bank statement from the account that you have been saving up in?
See Crank. See Crank Walk. Walk Crank Walk.
Posting Permissions
Quote
