Your credit score plays a massive role in getting approved for a mortgage—and securing the best possible interest rate. If you’re dreaming of buying a home, improving your credit score is one of the smartest moves you can make.

The good news? It’s not as complicated as it sounds. With a little focus and a few smart strategies, you can boost your score and increase your chances of getting the keys to your dream home.

Why Does Your Credit Score Matter?

Think of your credit score as your financial report card. It tells lenders how reliable you are when it comes to borrowing and repaying money.

The higher your score, the more likely you are to qualify for a mortgage—and the better your interest rate will be. A lower score could mean higher rates, stricter terms, or even denial of your application.

In Canada, credit scores typically range from:

• 300–579: Poor
• 580–669: Fair
• 670–739: Good
• 740–799: Very good
• 800+: Excellent

Most lenders prefer to see a score of at least 650 or higher for mortgage approval.

1. Check Your Credit Report

Before you do anything else, check your credit report. Mistakes happen, and errors on your report could drag down your score.

You can request a free copy of your credit report from:

• Equifax
• TransUnion

Look for:

• Incorrect personal information
• Accounts that aren’t yours
• Late payments that were actually made on time

If you spot any errors, dispute them immediately.

“Knowing where you stand is the first step to improving your credit health.”

2. Pay Your Bills on Time

Your payment history is the single biggest factor affecting your credit score. Even one missed payment can have a significant impact.

Here’s how to stay on track:

• Set up automatic payments for your bills.
• Use calendar reminders to avoid due date slip-ups.
• If you’re running short on cash, pay at least the minimum amount to avoid penalties.

Consistency is key. Over time, those on-time payments will build a strong credit history.

3. Lower Your Credit Utilization

Credit utilization is the percentage of your available credit that you’re using. For example, if your credit limit is $10,000 and your balance is $5,000, your utilization rate is 50%.

Lenders like to see a utilization rate of 30% or lower.

To improve yours:

• Pay down high balances on credit cards.
• Request a credit limit increase (but don’t increase your spending).
• Avoid maxing out your cards, even in an emergency.

“Think of your credit as a pie—don’t eat more than a third of it at any given time.”

4. Avoid Applying for New Credit

Every time you apply for credit, it triggers a hard inquiry on your report, which can temporarily lower your score.

While shopping for a mortgage, avoid:

• Applying for new credit cards.
• Financing big-ticket items, like a car or furniture.
• Co-signing loans for someone else.

Focus on keeping your credit profile stable until after you’ve secured your mortgage.

5. Keep Old Accounts Open

The age of your credit history matters. Lenders like to see that you’ve been managing credit responsibly for a long time.

If you have old credit cards that you no longer use, don’t close them—especially if they have no annual fees. Keeping them open adds to the length of your credit history, which can boost your score.

6. Diversify Your Credit Mix

Having a mix of credit types—like credit cards, car loans, and lines of credit—shows lenders that you can handle different kinds of borrowing.

That said, don’t open new accounts just for the sake of diversity. Focus on managing the credit you already have responsibly.

7. Pay Off Collections or Past-Due Accounts

If you have unpaid debts in collections, now is the time to address them. These can severely damage your credit score and your ability to get approved for a mortgage.

• Contact the creditor to negotiate a settlement or payment plan.
• Once paid, ask the creditor to update your account to reflect the resolution.

“A paid collection is better than an unpaid one in the eyes of lenders.”

8. Monitor Your Progress

Improving your credit score takes time, but the effort is worth it. Use tools like:

• Credit monitoring apps to track your score.
• Alerts from your bank or credit card provider to keep tabs on changes.

Celebrating small wins—like paying down a balance or catching an error—can keep you motivated.

How Long Does It Take to See Results?

While there’s no magic fix, you can usually start seeing improvements in your score within a few months of consistent effort. Significant changes, like improving your payment history or lowering utilization, might take 6–12 months.

The key is patience. Every positive step you take brings you closer to homeownership.

Final Thoughts

A strong credit score is one of the most powerful tools in your mortgage journey. By taking small, consistent steps, you can improve your credit health and position yourself for the best possible mortgage terms.

If you’re not sure where to start or want personalized advice, let’s chat. I’m here to help you prepare for homeownership and make the process as smooth as possible.

Ready to take control of your credit and move one step closer to your dream home? Reach out today, and let’s create a plan that works for you.