As a mortgage advisor all of my clients want the best interest rates for their mortgage. Other than choosing a great mortgage professional - the best way to ensure you get the best mortgage rates is to maximize your credit score. Great credit history and credit scores look attractive to lenders and they will offer these clients the best possible interest rates.

Read my tips below on how to maximize your credit score. If you need free mortgage advice feel free to call me directly at 905-441-3991 Tim Deering The Mortgage Locator. Click Here for more info

Credit utilization - Credit cards and lines of credit that carry balances over 50% of the available credit amount negatively impact your credit score. Try to always keep credit balances below the 50% mark. If you carry credit balances try and spread it out over different cards don't carry big balances on the same card or line of credit. Credit utilization accounts for approx 30% of your credit score. 

When you have credit cards or lines of credit that carry balances near the limit, you run the risk of going over your credit limit sometime this can happen accidentally because of an interest charge that you didn't factor in. Accident or not going over your credit limit will negatively impact your credit score and potentially get you in trouble with the credit issuer. Always leave some extra room. If your available credit is $5,000 never run it up over $4500. This should eliminate you ever going over the limit accidentally.

Even if you don't need the extra credit always accept offers from the bank or credit card company to increase your credit limits. Higher credit limits make you look like a stronger candidate to lenders it will also boost your available credit amount, this will increase your credit utilization percentage that will in turn increase your credit score. 

Don't let your cards or lines of credit go stale. It's easy to have a favourite card or use a card that offers the best rewards. Use all your cards regularly. Try and use some portion of your available credit often and simply pay it off right away. Accounts that sit dormant for too long will negatively impact your credit score. Some lenders may even revoke or reduce your available credit amount. 

Paying credit cards, loans or lines of credit late are disastrous to your credit score. Late payments stay on your account for years and will look really bad to prospective lenders. Even one 30 day late payment will be a black mark on your credit profile and will haunt you long in to the future. Keep track of your payment cycles and always pay off your minimum payments or balances at least 7 days prior to the due date. 

You should pull and monitor your own credit report at least twice per year. Not only will this help protect you from fraud or identity theft but it will also help you monitor your reports for errors. If you ever see any errors on your credit report contact the credit reporting agency right away and have it removed or corrected. In Canada the 2 main credit reporting agencies are Equifax and Trans Union I recommend you pull your own report on both agencies as the information may differ from either agency. 

Remember if you want to get approved for a mortgage with an A lender and be offered the best mortgage rates. Look after your credit and monitor your credit reports. This way you will be prepared and you will not be surprised by unexpected questions that may pop up from lenders. 

Mortgage agents can help you get approved even if your credit is not perfect. As a mortgage agent I deal with many different types of lenders that can help with all types of credit situations. I can also show you how to get your credit in shape before you apply to the lender for a mortgage.

My Name is Tim Deering, I am The Mortgage Locator. Call me direct at 905-441-3991 or 
​Click Here for more info. 

What is a Mortgage? 

A mortgage is a type of loan that is used to purchase a property or to buy a home. The property is the security for the loan. A mortgage allows the lender to legally take possession of the property if you don't pay this is also called a foreclosure. A mortgage is usually a large loan that is paid off over many years. Mortgage payments are a combination of interest and principal payments that are made by the borrower to the lender on a regular basis either weekly, bi-weekly, accelerated bi-weekly or monthly. Note: A mortgage is a complicated legal document, a mortgage agent can show you and explain in detail all the different elements that may buried in the mortgage terms.

Wether you are a first time home buyer looking to buy a home in Whitby, looking to refinance your current mortgage in Oshawa or looking for an investment property to buy in Ajax or Pickering. Unless you have enough money on hand to pay in cash for a home you will require a mortgage. You can either go directly to a lender yourself or you can enlist the services of a mortgage agent. A mortgage agent can be a huge asset to help you find the best mortgage product available for your specific situation. 

What is a Mortgage Agent or Mortgage Broker?

There are several potential benefits to using a mortgage agent or mortgage broker to obtain a mortgage I will list several of these benefits below. A mortgage agent or mortgage broker acts as a liaison between the mortgagor (the buyer) and the mortgagee (the lender). A competent mortgage agent will help you find a mortgage with the best terms and rate available based on your credit, income, down payment and employment status etc. Other than finding you a good rate a mortgage agent will also help you compile, review and organise all of your documents to be presented to the lenders. If there are any issues with your documents a mortgage agent will advise you on the best way to correct or address any inconsistencies before it is presented to the lenders. This service alone can sometimes be the difference of being approved or not. A good mortgage agent will also assist you with an appraisal if required with the lawyer and help you all the way up to and including the closing of the mortgage. 

Free Mortgage Advice and Free Mortgage Evaluation 

Most of the time a good mortgage agent will not charge you anything for advice. Such as crunching your numbers to let you know upfront how much mortgage you can qualify for. They do this to obtain your business and to hopefully create a longterm relationship with clients. Mortgage agents can save you time and legwork as they have extensive knowledge of where to find the best mortgage rates, mortgage products and have access to several different mortgage lenders.
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A Mortgage Agent will help you get approved and potentially save you thousands

A good mortgage agent will help you organise the required documents in a way that will allow you the best chance to be approved by a lender and achieve the goal of securing the mortgage. A mortgage agent will have established relationships with different lenders and will present your file to several different lenders. They will negotiate on your behalf and encourage lenders to compete for your business and help you achieve the best possible deal available to your specific situation. This will result in more options for you and could potentially save you thousands of dollars over the life of the mortgage. When you walk in to the bank to ask for a mortgage, you are on your own and honestly most people only have general knowledge of what is required to obtain an approval. A good mortgage agent will make certain your application is as ready as it can be to allow the best chance for approval.

How Much Does it Cost to use a Mortgage Agent or Mortgage Broker? 

Most of the time the mortgage agent is paid a commission from the lenders and will not charge you for their services. Although sometimes a mortgage broker will charge you 1%-3%. This broker fee will be charged if your mortgage qualifying situation is a difficult one or if the agent is required to get your mortgage financed through B and C type lenders. In layman's terms, If you have good credit, income, equity and job security you will qualify with an A lender and the mortgage agents services will cost you nothing. If you have bruised credit, a unique borrowing situation or other complications with your documentation the mortgage agent will charge you a fee for their services. Note: Any competent mortgage agent will advise you UPFRONT of any broker fees immediately after evaluating your situation and before submitting your documents to any lenders or before committing you into any product or mortgage agreement.

My name is Tim Deering and I am The Mortgage Locator - I never charge anyone for advice or for a mortgage consultation. I will take the time to explain the details and walk you through the process. I will work diligently to earn your business and to help you achieve the best possible deal. I am in this business for the long haul and my goal is to make you so happy that you will send me all of your friends and family when they also need a mortgage.