[andrewrmunro]

My mortgage is coming up for renewal in July. I have already applied and received a mortgage commitment from First National for a 5 year fixed closed rate of 2.69% which I intend to go with.

TD has pre-approved me for a credit card and a line of credit. I am interested in getting these but want to know if it could hurt my chances of getting the best mortgage rate possible when it comes to sign on the dotted line in July.

I have been told no applications are required for the credit card or line of credit, so they wouldnt need to check my credit score.

 

[valuemortgage]

A new credit car and line of credit being opened will NOT hurt your current approval. What matters is your GDS/TDS ratios, that is, how much of your income is being committed to service the debt load. If you get a line of credit and do not draw any money from it, it wont affect your debt load, and therefore have no impact on your current approval. What we need to pay attention is new debt being assumed, after an approval. for example, if you are approved today and have no car financing, then before closing the mortgage you apply for a lease and agree to pay 600.00 per month, this new 600.00 payment could be enough (depending on your income level and debt ratios) to push you over the GDS/TDS limits and be a deal breaker.
A CC and LOC (if no money is drawn from them) will not affect you.

 

[andrewrmunro]

That is perfect!
I am good at watching my expenses and have no plans to use the line of credit, but figure it is good to have just in case.
And getting some sign up bonuses from the credit card company is a bonus.

 

[valuemortgage]

By the way, you can get MUCH better rates out there.. 2.69% is not the greatest rate at this point. There are lenders with 2.54% and even 2.44%, on a 5y fixed.