The Five Cs of Credit


The mortgage process can sometimes be a little confusing or overwhelming. In addition to your personal finances, mortgage rules and lender guidelines are always changing.  However, focusing on the five Cs of credit can help. There are five key areas that are reviewed with a credit application and they have become known as the five Cs of credit.


Five Cs of Credit



This focuses on you personally and if you are able to manage the loan. It takes into account the other four Cs of credit in relation to you. Lenders look at stability, such as how long you lived at your previous residencies, how strong you are at saving money, how you manage your current debts, are you able to stay with one employer for a longer duration of time and so on.



Capital is the next of the five Cs of credit. This will be mainly your savings and more so the savings you have for the down payment and closing costs. Most lenders will want to see that you have saved, your down payment, closing costs, emergency money, etc.

Learn more: Down Payment on a House Ottawa
Learn more: Closing Costs to Consider When Purchasing a Home



Looking to your past will help the lender know what to expect in the future. Are you able to pay your bills on time? Have you had late payments, disputes in the past with creditors, etc.?

Learn more: How to Build Your Credit Score
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Capacity is the best of the five Cs of credit. This is about income and debt servicing. Do you have enough income to cover the mortgage payment and other real estate items such as heat, property taxes, etc.? A mortgage broker in Ottawa will review your debt to income ratios with you when completing a mortgage application.

Learn more: Mortgage Brokers in Ottawa



This is the property. The lender is looking to see the quality of the property that will be used as the security of the loan and if it meets their standards and guidelines.

The goal of an approval is to have all the five Cs meet the lender’s criteria.  Knowing more about what a lender is looking for when reviewing an application is a great start in getting on the right track for owning a home.

Learn more: Mortgage Pre Approval Ottawa

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About Andrew Thake

Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.

Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.

Why not make your mortgage experience a comfortable one?

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