Mortgage & Wealth Strategies
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Beyond The Rate
As an expert mortgage broker, I know building wealth through homeownership and achieving financial freedom is about more than just chasing the lowest rate—it’s about strategy.
I'm taking you behind the scenes and giving you the insider tools and powerful strategies to get ahead. If you’re a first-time homebuyer, you’ll find everything you need to secure your first property and start building wealth from day one.
If you’re an existing homeowner, this is where you take control. Maximize the wealth-building potential of your current home with proven strategies for refinancing, leveraging equity, and optimizing your mortgage for bigger opportunities.
Your mortgage is more than a loan—it’s a gateway to long-term financial success.
My goal is simple: to equip you with the knowledge and tools to make smart, strategic decisions that will transform your financial future.
Let’s get started.
Does Pre-Approval Affect Your Credit Score?
September 23, 2023 | Posted by: Matt Broom-Hall
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In the journey to homeownership, understanding the impact of credit inquiries is crucial. I'm Matt Broom-Hall, a dedicated mortgage broker and First-Time Home Buyer Coach in Canada, and today I'll walk you through how credit inquiries, or credit pulls, are treated by Equifax and offer guidance on managing them effectively.
Understanding Credit Pulls
When you apply for mortgage financing, lenders will conduct a hard credit inquiry to assess your creditworthiness, which can have a minor negative impact on your credit score. This process is essential for lenders to gauge the risk involved in granting you a loan and to accurately calculate your debt to income levels in order to find you max purchase price.
The Grace Period for Multiple Inquiries
Equifax, like other credit bureaus, realizes that prospective homeowners will shop around for the best mortgage rates. Therefore, it employs a 'de-duplication' or 'rate shopping' mechanism that considers multiple inquiries of the same type of loan within a specific timeframe (usually 14 to 45 days) as a single inquiry when calculating your credit score. This approach ensures that your credit score is minimally impacted while you're exploring your mortgage options.
Shopping for Mortgages in Canada
In Canada, the process mirrors our neighbors to the south, allowing a specific period for rate shopping without significantly impacting your credit score. However, remember that inquiries from different types of credit such as credit cards or personal loans are treated differently/separately and could have a cumulative effect on your credit score.
Practical Advice for Prospective Homeowners
Wisely Shop for Rates: Confine your mortgage rate shopping within a short period to leverage the grace period provided for multiple inquiries.
Regularly Monitor Your Credit Report: By regularly reviewing your credit report, you can ensure that all inquiries are legitimate and that your information is accurate.
Maintain Responsible Credit Habits: Responsible credit management, including timely bill payments and maintaining low credit card balances, is key to preserving and improving your credit score.
Final Thoughts
Understanding and managing credit inquiries effectively is crucial for prospective homeowners, especially first-time buyers. As your mortgage broker and coach, I am here to guide you through every step of your home-buying journey and to ensure you find the right mortgage solution tailored to your unique needs.