Upgrading credit scores for a mortgage application

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For those checking with mortgage brokers in preparation for buying a home, having a good credit score can be important. The Canada Mortgage and Housing Corporation says there are a number of legitimate ways to improve a score.

The CMHC says a credit score is one of many factors mortgage professionals will consider. For those in Canada who don’t know their score, they can obtain a free credit report through the mail from Equifax or TransUnion, or pay a fee to see it online.

The agency says some consumers may not have a credit score, if they haven’t used credit cards or other loans before. The CMHC says an easy way to get started building credit is to apply for a credit card and use it regularly.

To rebuild a damaged score, the CMHC says borrowers should be sure to pay all of their bills on time and in full, pay off loans as soon as possible and stay under any credit limits.

Having a higher credit score can help consumers get the lowest possible mortgage rates, which is something most are interested in. The Financial Consumer Agency of Canada says the second-most viewed question on its site was consumers looking to get the best rates.

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