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1. Paul Sidhu says:

   December 17, 2009 at 3:09 pm

   Absolutely. Your credit rating helps the lender assess your risk. The higher your credit score, the lower the risk you are, the lower your rate of interest. The lower your credit score, the higher the risk you are, the higher your rate of interest. The credit score could also hinder the amount that you are requesting. When it comes to really low scores, most lenders will only fund as high as 80% the value of the home. An example of this is if your home is valued at $100, 000 and you have a low credit score you would only be able to get a mortgage of $80 000, leaving you to come up with the other 20%. In most cases, average or superior credit scores allow you to finance up to 95% of the value of the home.

   Paul Sidhu, Principal Mortgage Broker at KTX Financial Ltd.

   Neither Kanetix® nor the KanetixForum.ca is a mortgage broker or agent. Although this information has been passed along to you from KTX Financial through the Forum, we are not responsible for the opinions expressed by them. Mortgages can be complicated. When reading these answers, keep in mind each person’s situation is unique. Individual responses may vary depending on your lender, geographic location, and specific circumstances. If you have a similar situation, always speak with your mortgage provider, or a licensed mortgage representative, for terms and conditions that may apply to you.