Ways to Improve Your Credit Score to Qualify for a Mortgage

Simple Steps Ontario Buyers Can Take to Boost Their Home-Buying Power

Thinking about buying a home in Georgina or the surrounding area? Your credit score plays a big role in qualifying for a mortgage—and securing the best possible interest rate. The good news? Even small changes to your financial habits can make a big difference.

Whether you’re just starting to build credit or need to bounce back from a few missteps, here are practical ways to improve your score before applying for a mortgage in Ontario.

📊 First, Know Where You Stand

In Canada, credit scores typically range from 300 to 900. Lenders generally consider:

• 700+ – Good to Excellent
• 650–699 – Fair to Good
• Below 650 – May require alternative lending options
  

Start by requesting your free credit report from Equifax or TransUnion to check your score and correct any errors.

✅ 7 Proven Ways to Improve Your Credit Score

1. Pay Bills on Time, Every Time

Payment history is the biggest factor in your score. Even one missed payment can set you back. Set up reminders or automatic payments to stay consistent.

2. Keep Credit Card Balances Low

Try to use less than 30% of your available credit. If your limit is $5,000, aim to stay under $1,500. High balances can drag your score down—even if you pay on time.

3. Avoid Applying for Too Much New Credit

Each new credit check can lower your score slightly. Only apply for credit you truly need, especially in the months leading up to your mortgage application.

4. Don’t Close Old Accounts

Long-standing accounts show stability. Even if you don’t use an older credit card, keeping it open can improve your credit history length.

5. Pay Down Existing Debt

The less debt you carry, the more appealing you look to lenders. Focus on high-interest debt first, but aim to reduce overall balances.

6. Diversify Your Credit Mix

Having a mix of credit (e.g., a credit card, car loan, or line of credit) can help—just be sure you manage it responsibly.

7. Limit “Hard” Inquiries

Shopping for a mortgage? Try to do all your rate shopping within a short time window (e.g., 2 weeks) to minimize the impact of multiple checks.

🏠 Why This Matters for Homebuyers

A stronger credit score not only helps you qualify for a mortgage—it can also:

• Lower your interest rate
• Increase your borrowing power
• Give you more lender options
• Save you thousands over time
  

Ready to Buy with Confidence?

At Wayne Winch & Brenda Brouwer Real Estate, we work with trusted mortgage professionals who can help you create a plan to improve your score and get mortgage-ready. We’re here to guide you every step of the way—from financial prep to finding your perfect home in Georgina.

📞 Reach out today to get started on your homeownership journey.