Buying a home in Canada often starts with one important number: your credit score. Whether you’re a first-time homebuyer or looking to refinance, your credit score plays a major role in getting mortgage approval — and the interest rate you’ll be offered.

Here’s a practical guide on how to boost your credit score and increase your chances of getting approved for a mortgage.

Understand Your Credit Score
In Canada, credit scores range from 300 to 900. Generally:

750+ = Excellent
700–749 = Good
650–699 = Fair
Below 650 = Poor
Lenders typically prefer a score of at least 680 for conventional mortgage approvals, although alternative lenders may approve with lower scores (at higher interest rates).

A low credit score can feel like a major setback, especially when you’re trying to buy a home. But the good news is: it’s absolutely possible to rebuild your credit — and often faster than you think — with consistent habits and the right strategy.

Here’s how to improve a low credit score (below 650) and work your way toward mortgage approval.

1. Get Your Full Credit Report
Start by ordering your free credit report from:

Equifax Canada
TransUnion Canada

Check for:

Errors or inaccuracies
Missed payments
Collections or defaults
Accounts you thought were closed
Disputing errors can lead to a quick score boost.

2. Make On-Time Payments — No Exceptions
Late or missed payments are the biggest reason for a low score. Set up:

Automatic bill payments
Reminders on your phone
Even a few months of consistent on-time payments can start pushing your score up.

3. Use a Secured Credit Card
If regular credit cards aren’t an option, a secured card is your best friend. It requires a deposit but helps rebuild your credit if used responsibly.

Tip: Keep usage under 30% and always pay in full.

4. Keep Balances Low
High balances on your credit cards signal risk to lenders. Keep each card under 30% of its credit limit.

Paying down balances is one of the fastest ways to boost your score.

5. Pay Off Collections and Past-Due Accounts
If you have debts in collections, tackle them right away. Contact creditors and try to negotiate a settlement or payment plan.

Once resolved, these accounts stop dragging down your score.

6. Limit New Credit Applications
Too many applications in a short time lower your score. Focus on:

Keeping current accounts in good standing
Avoiding unnecessary store or loan applications

7. Track Your Progress
Use free tools like:

Borrowell
Credit Karma Canada
They let you monitor your score each month and offer helpful credit-building tips.

8. Email our Mortgage Expert
Don’t wait until your credit is perfect to speak to a professional.

Absolute exposure mortgage agent can:

Recommend special lenders who work with lower scores
Help you prepare a strong application
Guide you on exactly how to qualify
✔ Final Thought

Rebuilding your credit takes time, but every on-time payment, low balance, and smart move gets you closer to homeownership. Many clients turn things around in just 6 to 12 months.

📞 Need Help Getting Mortgage Ready?
Namrata Shah
Mortgage Agent Level 1
Licence Number: M24001890

📍 9235 Janet Street, Vaughan ON L6A0J8
📞 647-238-3798
📧 info@absoluteexposure.ca
🔗 Mortgage agent