Mortgage Glossary

Credit Bureau

BC Mortgages will get your permission to obtain a credit bureau report.
Your credit bureau report will show previous and current credit ratings.
For example: you may have received a Visa credit card in May of 1978; you have a credit limit of $2,000; you currently owe a balance of $478; your minimum monthly payment is $24; and you have always paid on time (before the 'due date'). This is referred to as an 'A1' credit rating.

If you have had some credit problems: for example, you have occasionally been a bit late in making a payment (for example twice per year) don't worry, this will not effect your credit rating TOO much - but please get your act together. It takes seven years for any 'bad' information to disappear!

However, if you are usually 'sloppy' about your payments - for example, if you make payments when you get around to it, you will have seriously hurt your credit rating.
If the problem is not too severe, you may still be approved for a mortgage but you will probably have to pay a higher than normal rate.
If the problems are severe - for example, if you constantly pay late, or if you do not pay your bills, you could be declined for a mortgage. Some lenders will still consider your application if you have a large downpayment or a financially strong co-signor.

Your credit bureau is important because it shows how well (or not) you handle credit. If you do not handle credit well, you will either be charged a higher rate or your application will be declined.

If you have previously declared bankruptcy this will show on your credit bureau for seven years after your discharge.
A few lenders will consider your application two years after your discharge, others not for seven years. In the meantime you will be able to start again with new credit (try gas station cards and department stores first).

To view your credit bureau please visit Equifax online.

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