CREDIT REQUIREMENTS

• Lenders normally want to see a minimum of 2 active trades consisting of credit cards, lines of credit or instalment loans (car or student loans) listed on your credit report for a minimum of 24 months.
• Lenders will review your credit report to determine good repayment history of a minimum of 24 months. Late payments greater than 30 days are indicators of repayment concerns and can impact the decision for obtaining a mortgage. 
• Lenders like to see less than 30% usage of your credit limits available. High balances of credit can be an indicator of heavy credit reliance.
• Credit scores qualifications vary starting as low as 600 with many prime lenders.
• Avoid applying for any new credit or racking up any further debts during the process of obtaining a mortgage as this can impact the qualification for the mortgage.

Bruised Credit:

• Do you have bruised credit? There may be options for those with bruised credit consisting of late repayment history, low credit scores, lack of credit history, previous bankruptcy, consumer proposal or credit counselling. However, please note these mortgages may come with a higher interest rate and additional lender and brokerage fees that may apply.

*The information above is subject to change*

At MVP Mortgage Solutions we follow the 5 Cs of Credit when reviewing your credit application.

1. Character: To consider the borrower's integrity, honesty, responsibility and capability of the borrower(s).

2. Creditworthiness: To consider the borrower's previous credit repayment history. 

3. Capacity to Repay:  To consider the borrower’s capacity to repay their credit obligations in a timely manner. 

4. Collateral:  To consider the borrower's risks associated with the property taken as security.

5. Capital:   To consider the reserves of cash flow available to the borrower(s) to provide financial support should their circumstances change during the term of the mortgage.