Last updated on April 22, 2026..

If you’re planning to buy your first home, the first question you’ll be asked is, “What’s your credit score?” If that fills you with an all-consuming dread, here’s some good news: no matter what it looks like now, with some sound advice you should be able to see improvements in your credit score within 6 months. 

Knowing your credit score is a necessary evil. And hey, if you’ve never checked it before, you’re not alone. Just under half of Canadians (48%) have never requested a credit report from Equifax or TransUnion. But, here’s some more good news, both are free reports that do not hurt your score to request.  

Patty Hopper, Mortgage Development Manager at Vancity, sees many first-time homebuyers eager to get into the market. “I guide them through the process,” she says. “One of the first things I do is a credit check to see what’s happening there. And because I’ve been doing this for so long, I know exactly what they need to do to boost it. If my advice is taken, they’ll see huge improvement.”  

If your score needs a lift, Patty’s got a few suggestions, from always paying your bills on time to reducing your credit card debt as much as possible. “Keep an eye on your credit score through Equifax,” she says. “And set up pre-authorized bill payments so that they come out of your account on time every month.”  

Understand how your credit score stacks up

Your score is a number between 300 and 900, and is based on a few core factors. Not all of them matter equally, but they all play a role.  

Your credit score is calculated based on factors such as:  

• Payment history. Paying your bills on time is the most important factor. So set up your automatic payments. 

• Credit utilization, which is the amount of credit you’re using compared to your credit limit. Using 30% of your available credit is a good place to be.  

• Length of credit history. Older, well-managed accounts help.  

• Credit mix. Lenders like it when you have a variety of credit types (e.g., credit cards, loans). It shows you can handle different kinds of credit.

• Number of credit accounts you’ve opened recently. If you went wild and applied for a ton of credit cards all at once, it’s going to raise some red flags.  

The higher your score, the better your credit health, the more mortgage options you’ll likely have.

Your score tells a mortgage lender how well you manage debt. Are you able to make payments on time? How much debt are you currently carrying? Factors like this paint a risk profile for your lender. Lenders use this info to decide how much you’ll qualify for, and at what rate. In other words, the higher your score, the better off you’ll be.  

If your credit score is above 670, it’s considered a good score. If your credit score is below 620, your financial advisor or mortgage specialist can help guide you in the right direction. 

“We put a lot of weight on a credit score as it shows us historical behaviours, which include person’s past behaviour in repaying loans, managing credit cards, and handling other forms of debt. A higher score suggests that the person has a history of managing credit responsibly and is more likely to repay future debts.” Patty comments, “In addition to this, we would look at employment status, is this individual a saver, and ultimately the character of the applicant.” 

5 credit fixes that actually work.

Much like age, your credit score is just a number. It’s not a moral failing to have a low score, and it’s not permanent. So don’t beat yourself up if your score isn’t great. Instead, take a look at these steps you can take to improve your score:  

• Pay your bills on time: We said it before, timely payment of bills is everything. Set up pre-authorized payments to ensure you never miss a due date, especially for your phone bill, since missing or late payments are often reported by telecom companies. Missing just one bill payment can decrease your credit score by as much as 150 points.
• Reduce your credit card debt by keeping balances low: Even when you’re new to credit, keeping your card balance low helps. Using less of your available credit shows lenders you can borrow responsibly. 
• Monitor your credit score: Yes, monitoring your credit isn’t thrilling. But ignoring it is usually more stressful. You can check your credit score for free and without hurting it, through services like Equifax or TransUnion. First-time homebuyers especially need to make the effort to keep an eye on their credit scores. It’s a massive step to getting a mortgage, and the sooner you know what’s going on, the sooner you can make any moves you need to improve it.  
• Limit credit card applications: One well-managed card is more than enough to build a strong credit history.
• Look into authorized user status: For younger people or newcomers to Canada who have a hard time getting a card, you may be able to become an authorized user on someone else’s card, like a parent. This can help you build credit history without taking on new debt yourself. 

Start the mortgage conversation earlier than you think. Talk to a specialist before you’re ready.

Credit scores don’t change overnight. Even when you’re doing all the right things, improvement usually takes a few months. That’s why it’s a good idea for first-time homebuyers to talk to a mortgage specialist before they’re ready to throw down an offer on a home.  

A mortgage specialist can help you: 

• See how your current credit score affects your options. 

• Understand what lenders are looking for right now. 

• Identify specific steps that could strengthen your application over time. 

• Build a realistic timeline, not a high-pressure one. 

What a mortgage pre-approval actually does.

Once your credit is in a stronger place, and you’ve got your down payment saved, a mortgage pre-approval is likely your next step.  

A pre-approval tells you: 

• How much you can borrow, so you can start house shopping in the right price range.  

• The interest rate the lender is willing to hold. 

• How long that rate is locked in, but typically the bank will give you 90 days. 

It gives you clarity when you start home shopping, so you’re not making emotional decisions without financial context. And when the right place shows up, you’re ready to move. 

The benefits of an ongoing relationship.

Buying your first home is rarely a straight line. There are pauses, surprises, and trade-offs along the way.  

Working with a mortgage specialist early means you’re not navigating those moments alone. You’re getting advice that reflects your full financial picture, not just a single application. 

“A stable relationship with your financial institution ensures you have support when unexpected financial needs arise, like needing to buy a minivan for a growing family, or paying down your mortgage aggressively with a windfall,” Patty says. “It takes a village to help. I love being a part of that little village.” 

Credit isn’t about judgement. It’s about leverage.

Improving your credit score doesn’t happen overnight. Small actions, repeated consistently, compound to build your score into a healthy standing. And when your credit score is in a better place, it can open doors for you, like one to a home you own.  

And if you need support along the way, Vancity offers tools and guidance designed to help you understand your credit and move forward with confidence. 

 You don’t need perfect credit to make progress. You need a financial partner who can help you strengthen your score, and a plan you can stick to. Reach out today and start the conversation.