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TODAY'S RATES

Fixed Rate Mortgages

1 Year	2.44%
2 Year	3.09%
3 Year	2.90%
4 Year	3.54%
5 Year	3.64%
6 Year	4.39%
7 Year	4.70%
10 Year	5.04%

Cash Back Mortgages

5 Year 5% Cashback 5.39%
7 Year 5% Cashback 5.90%

Variable Rates

1 Year Variable Rate Closed
Prime – 0.30% (2.45%)

3 Year Variable Rate Closed
Prime – 0.70% (2.05%)

5 Year Variable Rate Closed
Prime – 0.70% (2.05%)

5 Year Variable Rate Open
Prime + 0.80% (3.55%)

Secured Line of Credit

Minimum payments interest only Prime + 0.50% (3.25%)

Prime Rate Today is 2.75%

Rates subject to change without notice

Updated as of September 3, 2010

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Establishing Your Credit

The mortgage interest rate you will be offered by the bank is largely determined by your credit score. There are currently 2 credit bureau reporting agencies in Canada – Equifax and Transunion. Anytime you apply for or are granted credit, your repayment history will be reported by the credit grantor to one of the 2 credit bureau reporting agencies. Your credit bureau reflects personal information such as your name, address, employer as well as which creditors have checked your credit bureau, which credit facilities you have access to (including limits, balances, and monthly payments), and repayment history. Depending on the amount of credit you access on a regular basis as well as how timely you are with your required repayment, you will be assigned a credit score.

The credit score can range from 300 to 900. If your score exceeds 700 you are in the excellent range and will have no problem getting offered best rates from the banks. A score of 650 (Very Good) and above is needed to get a cashback 0 downpayment mortgage. A score of 680 and above will also allow you to borrow more mortgage money than if you have a score of less than 680. And a minimum score of 600 will most likely be needed for you to get an insured mortgage with a major bank.

So, how do you keep your score high? There are some basic steps you can take to keep your credit in shape. The most important thing is to make your payments on time. This includes everything from bill payments to credit card bills, car loans, and student loans. If you find you are having problems with making the payments on time, get set up for an automated payment service where the payments are taken directly from your bank account on a set date. Also, keep the amount of credit you have to a minimum. Excessive credit and credit that’s over limit can easily decrease your credit score as well. If you find that you have excessive credit, set yourself on a plan to reduce the balances. The credit bureau is updated every 30 to 90 days so you will have to be diligent with your actions. If your credit score is lower and you’re wishing to ramp up your credit score, be sure to make all payments on time for the next 3 months at least before checking your credit again.

One rule of thumb is to check your credit bureau via Equifax or Transunion at least once a year. This way you can see if anyone unauthorized has checked your credit bureau. If you see any discrepancies at all, contact the credit reporting agency or credit grantor to get your bureau updated. Keep in mind that if your credit bureau is being repeatedly checked by creditors, your score can decrease as well.

If you have no credit score, the first thing for you to do is to get a credit card. Your first credit card may have to be “secured” against a cash deposit but once your score is established, you can easily get the card changed to an “unsecured” credit card, where the cash deposit is no longer necessary. Most mortgage granters like to see at least 2 types of credit facilities open. Opening the credit card alone is not good enough. Ensure you draw on the credit card and pay it back on a timely manner. This will put you on track to get the best mortgage rate available.