3 Things You Didn’t Know About Private Mortgages

private mortgagesWhen it comes to private mortgages you might think that you know all the facts, but you might not! Here we’re going to cover three interesting things that might make your life easier when you check them out, and you’ll be a little better prepared to get out there and start borrowing. Here we’re going to talk about how different inquiries to your credit report can affect you, if paying off old collections will hike your credit score and if your credit score really only changes once a month or not. Let’s get started!

“Paying Off Old Debts in Collections Will Improve My Credit Score”

This depends! If it’s a really old debt and it’s buried deep in your credit report it may actually not bear that much on a lender’s decision to give you a private mortgage. But if you start paying it off but you haven’t paid it off in full and you haven’t been able to get them to remove it from your report just yet, you may see a negative impact. Sometimes leaving things in the past is the best thing you could do – if you’re not sure what you should do, talk to one of our Canada mortgage brokers.

Your Credit Score Only Changes Every 30 Days

Totally not true! Credit reporting agencies actually have different reporting cycles – so if a company reports your debt at the beginning of the month another company could report your account activity in the middle of the month or at the end. Everyone is different and this is one area of your credit report that doesn’t deal in absolutes. You’ll want to be very careful about this part of things, and not obsess about checking it every part of the month. If you’re really worried about things, consider getting a subscription to watch your credit from one of the major Canadian credit bureaus like TransUnion.

“Multiple Inquiries from Lenders Will Wreck Your Credit”

You’ll actually have a window where this won’t be a huge problem when it comes to private mortgages (or any kind of mortgage) – but you will want to make sure that you’re applying for mortgages all within a 2 to 4 week window. This way you’ll be able to only have one mortgage inquiry on your credit report and the other 10 applications you put out won’t show up behind it. They’ll never know if you applied for one mortgage or 15, which is great for you.

You’ll want to work with one of our Toronto mortgage brokers when you’re trying to figure out how much you can borrow. After all, even a private mortgage can be hard to get if you don’t know what you’re doing. We’ll help walk you through all that paperwork and make sure that you understand all of your options. If you need help with your credit or if now is just not the right time for you to apply for a Canadian private mortgage, as your Canada mortgage broker we’ll help you figure things out.