Credit · 5 min read
How your credit score affects your mortgage rate
Where the real cut-offs sit, what a single missed payment costs over five years, and the fixes that move a score fastest.
Your score is not a personality test. It is a pricing input, and it works in tiers — which means being four points below a threshold costs exactly the same as being fifty below it, and getting four points back is worth real money.
Where the cut-offs actually sit
- 680 and above — full access to prime lenders and best pricing. Insured mortgages generally require at least one borrower at 680.
- 600 to 679 — still workable with most lenders, sometimes with a small rate premium or a tighter debt-ratio cap.
- Below 600 — alternative lending territory: more down payment, a rate premium, and a lender fee, with a plan to move to an A lender in a year or two.
On a $500,000 mortgage, half a point of rate is roughly $140 a month and about $8,400 over a five-year term. That is what a tier is worth.
What the score is made of
- Payment history — about 35%. One 30-day late payment can pull a good score down by 60 to 100 points.
- Utilization — about 30%. How much of your available credit you are using.
- Length of history — about 15%. Age of accounts. This is why closing your oldest card is a bad idea.
- Credit mix and new inquiries — about 20% combined.
The fastest fixes
- Pay balances down before the statement date, not the due date. Bureaus see your statement balance. Getting every card under 30% — ideally under 10% — is the quickest legitimate gain available, often within one cycle.
- Never miss a minimum. Automate them. A $40 minimum missed by a week can cost you a rate tier.
- Keep old cards open with a small recurring charge on them.
- Stop applying for anything else once a mortgage file is open — no car financing, no store cards, no new limit requests.
What does not hurt you
Checking your own score is a soft pull and has no effect. Multiple mortgage inquiries inside a short shopping window are grouped and counted as one — which is precisely why a broker sending your file to several lenders does not damage your credit the way applying at four banks yourself would.
General information only, not financial advice, and not an offer of credit. Figures and program limits are current at the time of writing and do change — confirm the details that apply to your file with me before you act on them.
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