If you are looking for a mortgage Ottawa residents would do well to understand the Credit Bureau.
A credit bureau is a company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses.
What You Need to Know to Get Your Mortgage Ottawa
It is an organization providing information on individuals’ borrowing and bill paying habits. This helps lenders assess credit worthiness, the ability to pay back a loan, and can affect the interest rate and other terms of a loan. Interest rates are not the same for everyone, but instead can be based on risk-based pricing, a form of price discrimination based on the different expected risks of different borrowers, as set out in their credit rating. For those who are looking for a mortgage, Ottawa consumers with poor credit will pay a higher annual interest rate than consumers who don’t have these factors.
To summarize, your credit bureau tells the story of how you manage your credit.
It’s a measurement of your credit responsibility.
How responsible are you?
The average Canadian has a credit score of 700. Your score is determined by:
- How many credit cards or trade lines you have,
- The balance on your credit cards or lines of credit,
- The quality of your credit card / lines: Not all credit is considered equal, and
- How many credit card / lines do you have? Less is not always better!
- What’s the limit on your card? Do you exceed your limit?
When you use 75% or greater of your credit limit you lower your score.
Contact me if you have a credit question or would like to discuss your credit bureau and how it might affect a future application for a mortgage.
Free Credit Report & Review
Jacquie is offering a free credit report and review with every pre approval or mortgage application!
Call or email Jacquie for more information on this great offer!