The Impact of Credit History on Mortgage Renewal

Do my credit history affect my mortgage rate? I'm often asked this question. The answer is, it all depends on what situation you're in.Your financial situation has a direct impact on your mortgage loan!

Securing a good mortgage rate is essential for saving money on your long-term borrowing. Key element to achieve this? Your credit history! But the exact impact depends on your situation. Let’s explore this together.

Mortgage Renewal: No usual impact… unless there are hiccups.

If you renew your mortgage with your current lender, your credit history generally doesn’t affect the renewal. However, past payment delays could result in a less favorable interest rate or even early repayment required by your institution.

In rare cases, your bank may request a new credit check to ensure your financial health. If significant changes have occurred, a refusal of renewal is not impossible.

Purchase or Refinancing: The Crux of the Matter

When purchasing a property or refinancing your mortgage, your credit history plays a crucial role. A good credit history results in lower interest rates and faster approval of your application.

On the contrary, a poor credit record can mean higher rates, or even a loan refusal.

Why use a mortgage broker?

An experienced mortgage broker can guide you through this maze. They will analyze your financial situation, understand your goals, and present you with the best mortgage loan options based on your profile

Surround yourself with good experts!

Obtaining a mortgage is an important process. Don’t hesitate to seek out competent professionals to guide you.

You have questions? Need personalized advice? Contact me today at 514.884.1907.

Your trusted mortgage broker.