The interest rate you pay for a new mortgage, or for refinancing your current mortgage, is determined to a large degree by your credit score. Here's one very basic piece of advice for encouraging a good credit score: Pay your bills on time!

Any unpaid bills - no matter how small - that find their way into the hands of a collection agency, can affect your credit report, and therefore the interest rate on your mortgage.  Even a seemingly minor 0.25 percent increase in your mortgage interest rate can make a difference of thousands of dollars over the long run.

Credit ratings can affect you at the most unexpected times.  For example, did you know that a lower credit rating could even result in higher home and auto insurance premiums?

A good credit record comes from using credit responsibly.  However, sometimes even people who do use their credit responsibly discover, at the point they're applying for a loan, about an error or a forgotten issue on their credit report, and have no time to set the record straight.  Don't let this happen to you - take advantage of your right to receive a free credit report every year.

In Canada, the three main companies you'd approach to find out your credit score are Equifax, Trans union and Experian.  Even if you're not interested in applying for a mortgage at this point, take the time to find out your credit score, and make sure it's accurate.

Need information on loans, mortgages or credit scores? Make contact today for a no-obligation discussion!

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