A good credit report and credit score are important factors in determining whether or not you will be approved for a mortgage. They can also influence the interest rate you might be charged. Here are some simple steps you can take to maintain a good credit history and improve your chances of being approved.

Your credit score is a number that illustrates your financial health at a specific point in time. It also serves as an indicator of your financial past, and how consistently you pay off your bills and debts. This is one of the factors we have to consider in qualifying you for a mortgage.

It’s important to begin building a credit history as early as possible. You can begin to build one by applying for – and responsibly using – a credit card, a small personal loan or even an RRSP loan.  We would be happy to review your credit report with you and give you advice on improving your score if necessary. 

• Always pay your bills in full and on time. If you cannot pay the full amount, try to pay at least the required minimum shown on your monthly statement.
• Pay off your debts (such as loans, credit cards, lines of credit, etc.) as quickly as possible.
• Never go over the limit on your credit cards, and try to keep your balances well below the limits.
• Reduce the number of credit card or loan applications you make.

If your credit is a challenge, work with us through the process to improve it. From there we can obtain a mortgage that works for you.  Also, if you have equity in your home and other bills are affecting you credit, we can explore options such as a mortgage refinance to possibly consolidate the debts.