Your credit score plays a big role in how lenders see you, and it can make or break your chances of getting a great mortgage rate. If you’re buying your first home or refinancing an existing mortgage, a stronger credit score can mean lower interest rates, better terms, and more options.
At Cannect, we believe that understanding your credit profile isn’t just smart —it’s the first step toward saving thousands over the life of your mortgage.
Let’s break down how your credit score affects your mortgage and what you can do to improve it.
Why Your Credit Score Matters
Your credit score is essentially your financial reputation. It tells lenders how reliably you’ve handled credit in the past, from credit cards to loans and payment history.
In Canada, credit scores typically range from 300 to 900, and most mortgage lenders prefer to see a score above 680 for the best rates. Here’s how your score can impact your mortgage options:
- Excellent (760–900): You’ll qualify for the lowest mortgage rates and flexible terms.
- Good (700–759): You’ll still get competitive rates, but might have fewer lender choices.
- Fair (600–699): You can qualify, but rates will be higher.
- Poor (Below 600): You may need to explore alternative mortgage solutions, and that’s where Cannect can help.
How to Improve Your Credit Score Before Applying
Improving your credit score doesn’t have to take years; with consistency and smart financial habits, you can make noticeable progress in just a few months.
Here are practical steps that actually move the needle:
Pay Your Bills on Time
Payment history makes up the largest portion of your credit score. Even one missed payment can lower your score significantly. Set up reminders or automatic payments to avoid slip-ups.
Lower Your Credit Utilization
Try to use less than 30% of your available credit. If your credit card limit is $5,000, keep your balance below $1,500. Lenders see high utilization as a sign of risk.
Don’t Apply for Too Much New Credit
Every new application triggers a “hard inquiry,” which can temporarily lower your score. Be strategic, and only apply for credit when necessary.
Check Your Credit Report for Errors
You’d be surprised how often credit reports contain outdated or incorrect information. Review your report with Equifax or TransUnion, and dispute any inaccuracies.
Keep Old Accounts Open
Older accounts typically show a longer credit history, which can help improve your score. Even if you don’t use a card often, keeping it open (and active) can help.
How Cannect Can Help, Even If Your Score Isn’t Perfect
At Cannect, we understand that life happens, and sometimes, a few financial hiccups can hurt your score. That shouldn’t stop you from getting the financing you need.
We offer:
- Personalized mortgage solutions that fit your credit profile
- Alternative lending options with lower loan-to-value ratios for added security
- Credit improvement guidance so you can qualify for better rates in the future
- Transparent, no-commission advice from our in-house experts
If you’re looking to refinance, consolidate debt, or buy your first home, we can help you find a mortgage that makes financial sense, today and long-term.
Take Control of Your Financial Future
Boosting your credit score isn’t just about numbers; it’s about confidence and financial freedom.
And when it comes to getting the best mortgage deal, the right advice makes all the difference.
Talk to Cannect today to explore your mortgage options, get a free credit assessment, and take the next step toward a better financial future.
Watch our Make Money Count videos to gain more insights.