What Is the Minimum Credit Score Needed to Get Approved for a Mortgage?
Real-estate in the suburbs is in high demand and more and more families are choosing to move out of Toronto. Toronto is also a financial metropolis so with many different types of financial institutions come more financial options.
The more money you have down, or the more equity you have in your home, the more likely you will be at being successful obtaining mortgage financing, even with a low credit score.
Historically a 680 or higher beacon score/credit score was deemed acceptable to a bank and while CMHC will ensure a high ratio mortgage for an individual with a credit score as low as 620, the bank may not. So what does this mean to you?
This means that if you had a 650 credit score and wanted to ask the bank to finance a mortgage with a 5% down payment and even though you may qualify for CMHC high ratio insurance, your bank could end up declining your mortgage financing. That does not mean you don’t have other options.
Many Trust Companies, Mortgage Investment Corporations and Credit Unions will offer financing to a consumer who qualifies for CMHC insurance and has a 650 beacon score. Most of these institutions lend their money through local Brampton mortgage brokers so it makes sense to have a good relationship with one.
Another challenge with the recent turbulent economy is that some banks now require borrowers to have a credit score that exceeds 700!
It is also important to keep on top of your credit if you want to have the most mortgage options. For more information about the minimum credit score needed to get approved for a mortgage in Brampton and around the GTA visit http://www.gtamortgagematters.com.