Updated September 2026
Your credit score is one of the first things a mortgage lender looks at. A stronger score can help you qualify and get a better rate. Here is how to check where you stand in Canada and what you can do in the months before you apply.
Get your credit reports from both bureaus
Canada has two main credit bureaus, Equifax and TransUnion. Lenders may check either one, and the two reports don't always match, so get both. According to the Financial Consumer Agency of Canada (FCAC), you can get your credit report free from each bureau online or by mail. Equifax offers a free credit score in every province, and TransUnion offers one to residents of Ontario and Quebec.
Give yourself time. Checking a few months before you start house hunting leaves room to fix problems.
Fix any errors
Read each report line by line: your personal details, every account, the balances and the payment history. If something is wrong, the FCAC says you have the right to dispute it, and the bureaus must correct errors for free. Gather receipts or statements that prove the mistake and contact the bureau that shows it. If the bureau won't change it, you can add a short statement to your report explaining your side.
Pay every bill on time
Payment history matters most. Make at least the minimum payment on credit cards and loans every month, even when you can't pay the full balance. Late or unpaid credit card and loan payments can stay on your report for up to six years.
Rent, phone and utility bills don't usually build your credit score on their own, but any bill sent to a collection agency can show up on your report and hurt it. Keep everything current.
Keep your balances low
The FCAC's advice is to use less than 30% of your total credit limit. If you have a $10,000 limit, try to keep your balances under $3,000. Paying cards down before the statement date can help.
Limit new credit applications
Each application for credit can lower your score a little. Hold off on new credit cards, car loans or store financing while you're preparing to buy. When you're shopping for a mortgage, the FCAC notes that quotes from different lenders within a two-week period are treated as one inquiry.
Keep older accounts open
A long credit history helps. If you have an older credit card in good standing, keep it open and use it lightly. Having a mix of credit, such as a credit card and a car loan paid as agreed, can also help.
Understand how lenders measure your debt
Your score is only part of the picture. Lenders also compare your debts to your income using two ratios:
Gross debt service (GDS): your mortgage payment, property taxes and heating costs as a share of your gross income.
Total debt service (TDS): the same costs plus all your other debt payments, such as car loans and credit cards.
For mortgages insured by CMHC, the limits are 39% for GDS and 44% for TDS. Paying down a car loan or a credit card before you apply lowers your TDS and can increase what you qualify for. Lenders also check that you can afford your payments at a higher qualifying rate, which our guide to mortgage mistakes explains.
Don't change anything before closing
Your lender may check your credit again before your mortgage funds. Until you have the keys, avoid new debt, large purchases on credit and changing jobs if you can. Talk to your lender or mortgage broker first.
Talk to us
We can connect you with trusted local mortgage professionals and help you plan your purchase. Call us at (905) 830-9111.
