If just renewing with your current lender, you do not need to re-qualify. If switching lenders, you do need to re-qualify, however given the limited information I have so far, it should still qualify easily, even with the $35,000 on your LOC.jchung513 wrote: ↑ Thank you so much for your feedback and insight. Really appreciate it. I think we will use our LOCs if needed. If we use our LOC, will it affect our renewal due in September? What if we want to apply for a HELOC after the renewal? Does having a HELOC or HELOC application affect greatly on our credit score?
Here is more background info....
Current lender: MCAP 5 yr variable, p-o.85
Mortgage remaining: 410k
Value of property: 1.2m from recent sales history in our area (vancouver, bc, primary residency, purchased in 2009)
Credit score:>850 for both husband and I
Current income: 130k; 180-200k after 2021 (when I will be working more)
Things like property tax, car or loan payments, remaining amortization on your mortgage at renewal, and any balance carried month to month on your credit cards would also need to be considered. Future earning potential is not considered unfortunately.
Adding a HELOC, or additional credit will not have any signifiant negative effect on your score. There are a lot of myths out there about credit score. New credit and credit checks can affect your score, but as long as you have decent credit to begin with, then the effects of credit checks and additional credit are insignificant. Only if you have weak or borderline credit to you really need to be concerned about this.
Mortgage Broker, Author
CityCan Financial Corp (lic. 10532)