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FSRA MS25001031
If you're thinking about buying your first home, one of the most important things to understand is your credit. It might seem like just a number, but your credit score can make a huge difference in your mortgage options, your interest rate, and how much you’ll end up paying over time.
Let’s break it down in a way that actually makes sense.
Your credit score is a three-digit number that shows how reliable you are when it comes to borrowing money. In Canada, scores typically range from 300 to 900. The higher your score, the better.
A strong credit score tells lenders that you’re low risk, which can help you qualify for a mortgage more easily—and get a better rate.
Here’s a general breakdown:
Even a difference of 20 or 30 points can affect your mortgage rate, so it’s worth paying attention.
Several factors go into your score. Here are the main ones:
Lenders use your credit score to decide whether to approve your mortgage and what interest rate to offer. A higher score usually means lower interest, which can save you thousands of dollars over the life of your loan.
If your score is too low, you might need to work with a B-lender or private lender, which often means higher rates and more requirements.
If your score needs some work, don’t worry. Small changes can make a big difference over time.
Improving your credit takes time, but it’s one of the best things you can do before buying a home.
You can check your credit report for free through Equifax or TransUnion. You can also use services like Borrowell or Credit Karma to monitor your score and get tips.
Checking your own score doesn’t hurt it—and it’s a smart move to stay on top of things before you apply for a mortgage.
Understanding your credit is key to owning a home. It helps you qualify, saves you money, and gives you more control over your future. If you’re not sure where you stand or what to do next, I’m here to help you break it down step by step.
