Understanding your credit score—and looking after it before a mortgage

Your credit report records borrowing history; your score is a model’s summary of some of that information. Both matter, but neither defines you or gives the full picture of your mortgage options.

There is no single universal scoring recipe

Payment history, use of available credit, account age, inquiries and adverse records can influence scores. Exact weights vary between scoring models. The percentage chart in some handouts should not be treated as the formula used by every Canadian lender. Your lender may also see a different score from a consumer app.

Pay on time and keep balances manageable

Late payments can hurt your profile. Automatic payments or reminders may help, but keep enough money in the account and check statements for errors. Paying only the minimum on time avoids a missed payment; it does not eliminate interest or repay the debt quickly.

Try to use less than 30% of available credit, consistent with FCAC guidance.
For a $5,000 limit, 30% is $1,500; this is a useful target, not an approval guarantee.
Avoid running accounts at their limits, even if you expect to pay them off.

Check both credit reports

Equifax and TransUnion may hold different information. You can access free credit-report options; you do not need to purchase a monitoring subscription simply to review your report. Follow each bureau’s current process. Checking your own report is not the same as applying for credit.

Look for unfamiliar accounts, incorrect balances and wrong personal information.
Dispute errors through the bureau and relevant lender.
If identity theft is suspected, act promptly and discuss fraud alerts or other protections.

Before completion, do not make credit changes casually

A new vehicle loan, buy-now-pay-later plan, increased balance or co-signed loan can affect mortgage qualification. Closing an old account or opening replacement credit may also change the picture. Ask Matt before making changes while your mortgage is being arranged—even after an initial approval. Do not apply for a new credit line solely because an old handout suggests it.

Limited history or past difficulties

A thin credit file, collections or previous financial difficulty may mean a different plan or more time. Do not hide the issue or rely on promises of a quick score fix. Matt can help identify what the lender needs and discuss realistic next steps; credit repair and approval cannot be guaranteed.

Bring accurate details and supporting records.
Ask which actions matter most for your particular application.
Keep the focus on sustainable habits, not chasing a number.

Let’s make this personal

Tell Matt what matters most to you, and what feels unclear. We can help you work through the mortgage side of the decision and coordinate the next steps with your other professionals. Email matt.parker@indimortgage.ca or call 778.897.2554.

General Canadian mortgage guidance with British Columbia context; reviewed October 16, 2026. Your lender’s written requirements, mortgage contract and professional legal or tax advice take priority.