Breaking Down the Components of Your Credit Score for a Better Mortgage.

General Trish Pigott 28 Jun

A credit score is a three-digit number based on credit history and financial behaviour. Lenders use it to assess the risk of lending money to an individual. It is crucial in determining loan eligibility, interest rates, and loan terms. A higher credit score indicates that the person is more likely to repay their debts on time, while a lower credit score suggests that they may have a history of missed payments. Your credit score is a vital aspect of your financial health.

Several factors can affect your credit score, including your payment history, credit utilization rate, length of credit history, types of credit accounts, and new credit inquiries.

Your payment history is one of the most significant factors affecting your credit score. Lenders want to see that you make on-time payments consistently. Late payments, missed payments, and defaults can significantly lower your credit score.

Another factor that affects your credit score is your credit utilization rate. This is the amount of credit you use compared to your available credit limit. Lenders prefer to see a credit utilization rate of 30% or lower. If you have high balances on your credit cards, it can hurt your credit score.

The length of your credit history is also an essential factor. Lenders like to see a long and positive credit history. It can hurt your credit score if you are new to credit or have a short credit history.

Finally, new credit inquiries can also affect your credit score. When you apply for credit, the lender will check your credit report, which lowers your score each time someone checks it. Lenders may be concerned that you are trying to live beyond your means if there are too many credit checks or inquiries in your credit report.

There are two main credit bureaus in Canada: Equifax and TransUnion. These private companies store and share information about how you use credit.

Your credit report may contain your history of non-sufficient funds payments, bankruptcy, debts sent to collection agencies, registered items such as car liens, fraud alerts, and identity verification alerts. It will also contain information such as when you opened your account, how much you currently owe, if you have missed payments, if you make your payments on time,  and if you have ever exceeded your credit limit.

Your credit score plays a crucial role in determining your eligibility for a mortgage. A low credit score can make it challenging to secure a mortgage or result in higher interest rates and less favourable terms. On the other hand, a high credit score can increase your chances of getting approved for a mortgage and save you a significant amount of money in the long run. Understanding the components of your credit score and taking steps to improve it before applying for a mortgage is essential.  Learn more about your credit score here.

At Primex Mortgages, we can help you repair your credit score while shopping for a home. We can create a plan to raise your score to appeal to more favourable lenders and get the best rate out there for you.  CLICK HERE to book a call with Trish.

Trish & The Primex Team


Will Prime Rate Increase?

General Trish Pigott 21 Jun

The Bank of Canada recently announced a rate increase of 0.25% on June 7th. Making their prime rate 6.95%, a 22-year record high.

The prime rate affects variable-rate mortgages and personal & home equity lines of credit. The increase translates into roughly $15 monthly for every $100,000 worth of mortgage debt for variable-rate mortgage holders.

The Bank of Canada announced this rate hike because of its need to control the excess spending in this economy and the rising inflation rate.

Economists expect to see another rate increase in July of 0.25% again.

But this doesn’t only affect variable interest rates. The fixed-rate impacts mortgage borrowers through bond yields, which determines where fixed rates stand. The rise in the Bank of Canada rate hike and the expectation of another increase next month caused bonds to plunge and yields to surge to a 15-year high. This resulted in lenders increasing their fixed rates over the past several weeks. This impacts new buyers and those with a mortgage renewal coming up.

The earliest rate cuts are now expected in the summer of 2024.

It’s a similar scenario south of the border, where additional rate hikes are now likely despite yesterday’s rate pause by the Federal Reserve. New projections show they expect the benchmark rate to rise by another half a percentage point, while other officials believe it needs to move even higher.

The latest rate hikes have made fixed mortgage rates under 5% a “rare find.” Almost every mortgage product has rates that start at 5% and 6%. It is recommended that anyone in the market for a mortgage act right away to get a rate held for them. We will likely see more hikes to fixed-rate mortgages.

Anyone who is in the market for a mortgage and is still deciding what fixed rate term to choose, we are here to remind you that you can break your mortgage term. It does come with a penalty, but it can be broken. If you lock into a fixed-rate mortgage now, and the rates start to come down in the upcoming years, you are more than welcome to break the mortgage term and lock into a new rate.

Especially those with a variable rate mortgage who are struggling to ride this wave of rate increases are encouraged to talk with a mortgage expert here at Primex Mortgages to see if locking into a fixed rate mortgage makes sense for you.

Trish & The Primex Team

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What to know about Mortgage Renewal Time.

General Trish Pigott 14 Jun

Once there are about three months left in your mortgage term, your lender will send you a renewal letter. While most borrowers sign and send back their renewal without ever shopping around for a more favourable interest rate, this is the best time to check out your options.

Since your term is ending, it is perfect to shop the market or redo your mortgage without penalty! If you have wanted to change your lender, obtain a lower rate, extend your amortization or even change your mortgage from a fixed rate to a variable rate (or vice versa). At Primex Mortgages, we can help by shopping the market for you and finding the best product that suits your unique needs.

If you are considering switching lenders, you must inquire about any existing life insurance or other policies, as this could be affected if you change lenders. You should also be aware that NEW insurance could be more expensive as you are reapplying, and your circumstances (age, health) will have changed since your initial mortgage term and insurance plan was signed.

We can help answer all your refinancing questions and shop the market for a better rate! With access to over 90 lenders, we can quickly compare mortgage rates and products and help you switch! With over 20 years of experience, our team understands every mortgage is unique. We can help guide you in the right direction. Contact us to make your renewal a stress-free process.

Let us help! Contact us today at 604-552-6190 or

You can also CLICK HERE to book a free mortgage review call!

Trish & The Primex Team

The Bank of Canada Announcement & What This Means For You.

General Trish Pigott 7 Jun

This morning it was announced that the Bank of Canada increased its rate by .25%. The rate went from 6.70% to 6.95%. The central bank’s key interest rate has not been this high since April 2001.

After two consecutive rate pauses from the Bank of Canada, the bond market and the GDP are trending upward, putting more weight on the Bank of Canada. Almost expecting another rate increase rather than continuing to pause.

Several factors led to the bank’s decision to raise the key interest rate, including economic growth in Canada. Gross Domestic Product exceeded expectations in the first quarter of this year, growing by 3.1 per cent.

Despite the fact that most households have less disposable income, consumer spending is not slowing at a pace that gives the Bank of Canada confidence that inflation will tick downward. The Spring real estate market has had no shortage of open house activity and multiple offer scenarios once again.

Canada’s economy was stronger than expected in the first quarter of 2023, with GDP growth of 3.1%. Consumption growth was surprisingly strong. In addition, spending on interest-sensitive goods increased and, more recently, housing market activity has picked up.

In April, inflation increased for the first time in 10 months to 4.4%. The bank still expects inflation to decline to 3% by this summer, but concerns remain that inflation could get stuck above the 2% target.

“Goods price inflation increased, despite lower energy costs,” reads the statement from CTV News. “Services price inflation remained elevated, reflecting strong demand and a tight labor market.”

Rates have been moving all week resulting in Fixed Rates rising slightly due to the increase to the Bond Market. With the recent announcement of GDP trending upwards, which is not the direction we want in order to keep the BoC rates paused. Also, April’s high inflation rates may have caused the BoC to increase the rates. Major central banks are signaling that interest rates may have to rise further to restore price stability.

Some economists were thinking that the BoC will wait until they see May’s employment statistics, which will be released this Friday after the BoC announcement, to make any changes to the rates. Overnight Index Swap markets are currently pricing in a 34% chance of a rate hike this week, but odds rise to 78% for the Bank’s July meeting

Economists from Desjardins similarly noted earlier this week that whether or not the Bank will hike rates this week is “almost a coin flip at this point.”

If you are stressed or struggling to make ends meet, especially with this new rate hike. Please do not hesitate to contact us today to discuss your options. We understand how frustrating this situation can be.

We can look into switching from a Variable rate to a Fixed rate Mortgage, and arrange all things necessary for you and your family.

You can call the office at 604-552-6190, or you can CLICK HERE to book a free mortgage consultation call with Trish.

Trish & The Primex Team