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Bank statement mortgage rates aren’t one-size-fits-all. Lenders start with a base rate and apply adjustments based on your specific risk profile. Understanding these factors helps you anticipate your rate and identify ways to improve it.

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How Pricing Works

Lenders begin with a base rate for their bank statement program, then add or subtract adjustments for various risk factors. These adjustments are typically expressed in percentage points or basis points (0.01%). Example rate build-up:
FactorAdjustment
Base rate7.00%
Credit score (680)+0.50%
LTV (85%)+0.25%
Investment property+0.50%
Loan amount ($1.2M)+0.25%
Final rate8.50%

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Common Pricing Adjustments

Credit score:
Score RangeTypical Adjustment
760+-0.25% to 0%
720-7590%
700-719+0.25%
680-699+0.50%
660-679+0.75% to +1.00%
620-659+1.00% to +1.50%
Loan-to-value:
LTVTypical Adjustment
70% or below-0.25%
75%0%
80%+0.125%
85%+0.25%
90%+0.50%
Occupancy type:
TypeTypical Adjustment
Primary residence0%
Second home+0.25%
Investment property+0.50% to +0.75%
Loan amount:
AmountTypical Adjustment
Under $1M0%
$1M - $1.5M+0.125% to +0.25%
$1.5M - $2M+0.25% to +0.50%
Over $2M+0.50%+

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Other Factors That Affect Pricing

  • Property type — Non-warrantable condos, 2-4 units, and mixed-use may add 0.25-0.50%
  • Interest-only — Typically adds 0.25-0.50%
  • Cash-out refinance — Adds 0.25-0.50% versus purchase or rate/term refinance
  • Self-employed tenure — Less than 2 years may add to rate or limit availability

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Improving Your Rate

Factors you can control before applying:
  • Increase credit score by paying down balances
  • Make a larger down payment to reduce LTV
  • Pay discount points to buy down the rate (typically 1 point = 0.25% rate reduction)
Factors to shop for:
  • Compare base rates across lenders
  • Find lenders with favorable adjustments for your profile
  • Look for promotional pricing or relationship discounts