Are you a new home buyer or applying for a second mortgage? In either case, you may need to rebuild your credit before mortgage approval to qualify for a loan. Good credit strengthens your credit history and leads to a better mortgage rate.
At Get a Better Mortgage, we help you improve your credit score before a mortgage approval so you can move forward with confidence.
Why Your Credit Score is Important
An individual’s credit score is important because it shows lenders whether you’re capable of paying back money, the status of your debt history, and whether you have a stable income to pay back a loan.
When applying for a mortgage, a credit score of 600 and above shows your credit is strong, and a score below 300 indicates it’s low – meaning you may have to apply for a mortgage through B Lenders instead of going through traditional lenders, such as the big banks.
Below, we cover five ways to improve your credit before you apply for a mortgage.
5 Ways to Improve Your Credit Score Before a Mortgage Application
Check and Understand Your Credit Report
If you’re in the market to buy a home, or it’s been a while since you checked your credit status, it’s time to request your credit score report. The two major organizations (credit bureaus) in Canada that issue these reports are Equifax and TransUnion. You can access these online reports for free once a year on their respective websites, by mail, or in person with two valid pieces of ID.
Lenders look at different factors when coming up with your credit score, including payment history, credit use, credit mix (type of credit you’ve managed), credit history, and new credit inquiries. Your credit report helps determine if you can pay back money you have borrowed.
A credit score will be a three-digit number from 300-900; a number above 650 is a good rating and below 300 is a poor rating. A range of 670- 738 is the baseline range for most standard loans. It’s important to review your personal, account and other information on the report to make sure it’s accurate. Some basic information to check includes your SIN number, date of birth, current/past addresses. Always check your personal information for accuracy and potential identity theft.
Limit Credit Applications
A rule of thumb for establishing good credit is to limit how often you apply for loans, credit cards, and “hard” credit checks. While “soft” credit checks will not impact your credit score, a “hard” credit check happens when you officially apply for a loan (mortgage, credit card, auto loan, personal loan). A “soft” credit score happens when your credit is pre-approved or someone conducts a background check. Keeping credit applications to a minimum also helps your credit history, as it lengthens the time you’ve had credit – which is seen as a positive for lenders.
Better Money Habits
If you weren’t taught how to manage money as a young adult and you're not a finance major, you may have adopted poor money habits. Consolidating debt, budgeting, and saving a percentage of every paycheque are just a few tips to improve how you manage and spend your money.
The Financial Consumer Agency of Canada (FCAC) offers free information to help manage your personal finances. Their budget planner is a helpful interactive tool that helps you budget your money in three easy steps. The site also guides you through additional financial tools and calculators, including the financial goal calculator, mortgage calculator, and a vehicle lease or loan calculator – among other tools.
Managing Credit Types
Improving your credit score also depends on the different types of credit you have. For example, having three types of credit can improve your credit rating, including a credit card, a line of credit, and a car loan. This shows that you can manage your credit as long as you’re paying back your loans on a regular basis.
Time and Patience
Planning your home purchase for the future may seem unrealistic with shoddy credit. But focusing on improving your credit before contacting a mortgage broker is a great way to start rebuilding your credit. It can take patience and perseverance to get back on track financially, but it is definitely possible. According to the 2026 Mortgage Consumer Survey, homebuyers take an average of 4.4 years to save for a down payment, with first-time buyers taking longer.
Ready to Get Started?
While it takes time and some planning to strengthen your credit before you start looking for a home, it’s well worth the effort. Once your credit is strong, you’ll be well on your way to buying that perfect house or condo you’ve always wanted.
Contact Get a Better Mortgage today to start rebuilding your credit for a future mortgage. If buying a house is in your timeline, we encourage you to start overhauling your credit now.
