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Mortgage Squad Advisors
Credit & mortgages

How to improve your credit score in Canada — before your mortgage.

A higher score can mean a materially lower rate on a $500K+ decision. Here are the five levers that actually move your score — consistent with the Financial Consumer Agency of Canada guidance — a realistic timeline, and the mistakes to avoid in the months before you apply.

Score you need for a mortgageSee what you qualify for

The 5 levers that move your score

1. Payment history

The biggest factor. Never miss a payment: even one 30-day late can drop your score significantly and stays on your report for years. Set everything to autopay the minimum.

2. Utilization

Keep each card under 30% of its limit (under 10% is ideal). Pay before the statement date, not just the due date.

3. Credit age

Don't close your oldest cards — length of history helps. Keep them active with a small recurring charge.

4. Credit mix

A healthy mix (a card + a loan/line) helps modestly. Don't open new accounts just for mix.

5. New inquiries

Avoid new credit applications in the 3-6 months before your mortgage. Each hard pull can cost a few points; the inquiry stays on file for years but its effect fades within months.

Don’t do these before applying

  • • Don’t apply for new credit cards, car loans, or financing (each hard pull + new debt hurts).
  • • Don’t close old cards — it shortens your history and raises utilization.
  • • Don’t max out cards then pay at the due date — pay before the statement cuts.
  • • Don’t co-sign for anyone right before your mortgage.

6 ways to raise your credit score before applying

The moves that lift your score fastest — and the timeline to expect.

1

Pay on time, every time

Payment history is generally the single biggest factor in your score. One missed payment can drop you a tier, so set up autopay on at least the minimums before you apply.

2

Keep balances under 30%

Credit utilization is the second-biggest lever. Carrying under 30% of each card's limit (under 10% is better) can lift your score within a statement cycle or two.

3

Don't close old cards

Length of credit history helps your score, and closing an old card shrinks your available credit (raising utilization). Keep old accounts open, even unused.

4

Limit new applications

Each hard inquiry nudges your score down, and several in a short window reads as risk. The inquiry stays on your report for years, though its effect fades within months. Avoid new credit in the months before your mortgage.

5

Check your report for errors

Bureau errors are common and can cost you a tier. Pull your Equifax and TransUnion reports, dispute mistakes, and confirm paid debts show as paid.

6

Give it a little time

The fastest wins (utilization, fixing errors) show in weeks; history and inquiries heal over months. We tell you which moves matter for your timeline.

Why plan your credit with us

  • A ballpark with no bureau pull — see where you stand before the hard inquiry.
  • The exact moves that lift your score fastest for your file and timeline.
  • Every lender tier shopped — qualify a tier higher where it's worth waiting.
  • FSRA #13737 · no judgment · a plan to your best rate.
FSRA #13737 · Mortgage Squad Advisors · Rate Beat: we try to beat an eligible Big-6 offer, or pay you $500 (conditions apply).

Improving your credit — FAQ

How long does it take to improve a credit score?
Meaningful gains take 3-6 months of clean behaviour; rebuilding from a major hit (collections, missed payments) can take 12-24 months. Utilization improvements can show in as little as one statement cycle.
What's the fastest way to raise my score before a mortgage?
Pay down revolving balances below 30% of limits (ideally before the statement cuts), clear any small collections, and stop applying for new credit. These move the needle fastest, and they match the Financial Consumer Agency of Canada’s guidance1.
Should I pay off collections before applying?
Usually yes — many lenders require collections paid before funding. But check first: in some cases the strategy differs. We'll tell you exactly what your target lender needs.
Will checking my own credit hurt my score?
No. Checking your own credit is a "soft pull" and never affects your score. You can get your report free from both Equifax Canada and TransUnion Canada3; check both regularly. See Equifax vs TransUnion.
How long do late payments and inquiries stay on my credit report?
Per the Financial Consumer Agency of Canada, late or unpaid accounts can stay on your report for up to 6 years, and lender inquiries for 3 years at Equifax or 6 years at TransUnion2. Their effect on your score shrinks as they age, so recent, clean history matters most.
Can I still get a mortgage while I rebuild?
Often yes — a B-lender or private mortgage can fund now while you repair, then refinance to A-pricing. See bad-credit mortgage options.

Sources

Primary sources for the rules and figures above. Rules, rates and lender policies change, so confirm anything you plan to act on with a licensed advisor.

  1. 1. Financial Consumer Agency of Canada, Improving your credit score: Paying on time, keeping balances low relative to limits, and building history improve a credit score.
  2. 2. Financial Consumer Agency of Canada, What's in your credit report: Credit bureaus may keep lender inquiries for 3 years with Equifax or 6 years with TransUnion, and late or unpaid accounts for up to 6 years.
  3. 3. Financial Consumer Agency of Canada, Ordering your credit report and score: You can get your credit report free from Equifax Canada and TransUnion Canada.

Not sure where your credit stands?

Maya can ballpark your options with no bureau pull, and a licensed advisor will map the exact moves to get you mortgage-ready.

Ask MayaGet started