refinancing regularly hurt credit score?

[Oshawott]

just wondering, if we are in accumulation phase, most likely there will be a fair bit of refinancing/releasing equity to maximize buying opportunity.

if for example you do 1 or 2 refinance a year (assuming you have multiple properties) are you hurting your credit score a lot? should you worry about credit score if you are doing this?

 

[Peter_Tersteeg]

A lot of inquiries is going to hurt your credit score, but most lenders scoring systems are smart enough to mitigate this when you've got a larger than average portfolio.

I've had two recent scenarios where we've been able to get finance approved where the person has had at least 6 inquiries in the last 6 months, but with a portfolio of around 6 properties the loans are being approved.

In the second scenario there's only a single property but a high number of credit inquiries. The same lenders credit scoring system has automatically declined the application. Fortunately we have been able to get it approved with a lender that does not credit score.

 

[Jamie M]

A couple of hits won't hurt. Even a few more than this is usually ok providing there's a logical reason.

Cheers

Jamie

 

[Rolf Latham]

The primary key is to avoid lenders that don't have their own lenders mortgage insurance approvals.

Two simple reasons

Most lmi providers do not like big portfolio investors - rental reliance as a policy has made a big come back if more than half of your income is from rent

And, for every loan you will have at least 2 enquiries sometimes 3 as the lender bounces the deal to the alternate lmi provider if the preferred hand approved it

Below 80 % it's rare the activity becomes an issue anyway

Ta

Rolf