Helpful Advice on Applying for Credit

At Equitable Trust, we know that your ability to obtain credit from a financial institution such as Equitable Trust is important to you being able to achieve your life goals. The credit granting process and the factors considered by a lender can be difficult to understand. We have prepared this information to help you understand the process better and to answer your questions.

Mortgages

1) What role does a mortgage broker play?

2) How do I find a mortgage broker? 

3) How long does it take to approve a residential mortgage?

 4) How does your credit history affect or influence your ability to obtain future credit? 

 5) How does a good credit rating help you to obtain a mortgage? 

 6) Who do I contact to obtain a copy of of my credit bureau report? 

1) What role does a mortgage broker play?
A mortgage broker acts as an intermediary who sources mortgages on behalf of individuals or businesses. They can guide individuals through the process of selecting a suitable mortgage and offer mortgage and property related financial advice.

The majority of mortgage brokers are regulated to ensure a level of protection for the consumer. For self employed individuals and new immigrants, finding a lender may be difficult. A mortgage broker, having specialized knowledge and multiple lending sources, will be a valuable resource in obtaining financing.

2) How do I find a mortgage broker?
There are several ways to locate a mortgage broker - real estate agents and friend/family referrals, as well as contacting your national or local provincial brokers association for a directory. You can also check the Canadian Association of Mortgage Professional (CAAMP) at caamp.org to find an accredited mortgage broker. 

3) How long does it take to approve a residential mortgage?
Equitable Trust takes a team approach to lending.  Working together we see and hear what others may miss. We work to understand each challenge and overcome obstacles to make the deal work for you. Exceptional customer service in the delivery of innovative residential mortgage solutions are the reason Canadians have turned to us.

Quick approval for a residential mortgage depends on obtaining the mandatory documents below:

• Purchase & Sale Agreement (purchases only)
• Mortgage Application
• MLS Listing (for applicable purchases)
• Credit Bureau Report

**Additional documentation may be required for larger loan amounts.

4) How does your credit history affect or influence your ability to obtain future credit?

The way you have handled your financial obligations in the past affects whether a lender will approve your application for a mortgage today and may also affect the interest rate of the mortgage. Paying your monthly credit card, loan or mortgage payments on time and without payments being returned for insufficient funds as well as paying off your loans in full on schedule are important steps that you control in creating your “credit history”. A host of other factors can also influence your credit history including your outstanding debt, discharged bankruptcy and imperfect credit. The timeliness of your credit card, loan and mortgage payments are reported by lenders to the credit bureaus on a monthly basis. Based on that information, the credit bureau assigns you a “credit rating”. When you apply for credit, the financial institution carries out a credit check and determines your credit rating. While your credit rating is not the only factor considered by lenders, it is a key factor in making their decision whether to loan money to you and if so, at what interest rate.  

5) How does a good credit rating help you to obtain a mortgage?

Developing or maintaining a good credit rating is essential to your financial well-being. It’s important to establish and maintain the highest rating possible. In Canada, credit scores can range from 300 to 900, with higher scores reflecting a healthier financial record and being considered less of a risk to the lender.

Credit scores starting in the low 700s are considered good. The higher the score, the easier it is to obtain a loan. Interest rates are also determined by your credit score in the overall adjudication process.

In some instances, customers may not have a chance to establish a credit history in Canada and wish to build good credit. Mortgage brokers turn to Equitable Trust to place their customers who have not qualified for credit through the large traditional financial institutions. Equitable Trust caters to the “Business-For-Self” customers, new immigrants and credit challenged borrowers. At Equitable, we take a balanced approach - we are flexible and open to the realities of an individual’s past credit history and we consider their potential for the future.

6) Who do I contact to obtain a copy of my credit bureau report?

To obtain a copy of your credit bureau report, you can contact the credit bureaus directly:

Equifax Canada
1-800-465-7166
consumer.relations@equifax.ca

Trans-Union Canada
1-877-713-3393 (Quebec only)
1-800-663-9980 (All other provinces)
marketing@tuc.ca