If you’re planning to buy a home in Canada, your credit score plays a big role in whether you’ll get approved for a mortgage — and what interest rate you’ll qualify for. A higher credit score not only increases your chances of approval, but it can also save you thousands of dollars over the life of your mortgage.
Here are three proven ways to improve your credit score before applying for a mortgage.
1. Pay Down Existing Debt and Make Payments on Time
One of the most important factors in your credit score is your payment history. Even a single missed payment can hurt your score. Lenders want to see that you manage credit responsibly.
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Always pay at least the minimum amount due on credit cards, loans, and lines of credit.
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Set up automatic payments or reminders to avoid missing due dates.
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If possible, pay down balances faster, starting with high-interest debts like credit cards.
Tip: Aim to use less than 30% of your available credit limit. For example, if your credit card limit is $5,000, try to keep your balance below $1,500.
2. Avoid New Credit Applications Before Buying a Home
Every time you apply for new credit — whether it’s a credit card, car loan, or store financing — it results in a hard inquiry on your credit report. Too many inquiries in a short period of time can lower your score and signal to lenders that you may be a higher-risk borrower.
Instead, focus on managing your current accounts responsibly:
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Avoid opening new credit cards unless absolutely necessary.
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Hold off on financing big purchases until after your mortgage closes.
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Keep older accounts open, as a longer credit history strengthens your score.
3. Check Your Credit Report for Errors
It’s surprising how often errors appear on credit reports — from outdated information to accounts that don’t belong to you. These mistakes can unfairly drag down your score.
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Request a free credit report from Equifax or TransUnion (Canada’s two major credit bureaus).
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Review it carefully for inaccuracies such as incorrect balances, duplicate accounts, or late payments you know you made on time.
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If you find an error, file a dispute with the credit bureau to have it corrected.
Tip: Checking your own credit report does not affect your score.
Final Thoughts: Preparing for Mortgage Success
Improving your credit score doesn’t happen overnight, but by consistently making on-time payments, managing debt wisely, and checking your report for errors, you can boost your score — and your chances of qualifying for the best mortgage rates in Canada.
If you’re thinking about buying a home in Nova Scotia or anywhere in Canada, I’d be happy to help you review your credit situation and explore your mortgage options.
Contact me today to start your mortgage journey with confidence.