What lenders are reading
Payment history carries the most weight, followed by how much of your available credit you are using. A card sitting near its limit hurts even when every payment is on time. Recent applications, collections, and any mortgage or car loan lateness get read closely.
- Missed payments in the last two years
- Balances above roughly thirty percent of each limit
- Collections, judgments, or a past consumer proposal
Fixes that work quickly
Paying a card down below thirty percent of its limit can move a score within one reporting cycle. Leaving old accounts open preserves your credit history length. Avoid new applications entirely in the ninety days before you apply. Do not close the card you have had the longest.
When the score is low anyway
Bruised credit does not end the conversation in Toronto. Alternative lenders and private lenders price on the equity in the property rather than the score. The cost is higher, usually with a lender fee, and the plan should be a one-term stay while the credit is rebuilt.
Check the report before the lender does
Errors are common: paid collections still showing, accounts that are not yours, duplicate entries. Pull your own report first and dispute anything wrong. Corrections take weeks, which is a problem only if you find out during an offer.
Frequently asked questions
- What score do I need for a bank mortgage?
- Most bank programs want the high six hundreds or better. Below that, alternative lenders look primarily at the property's equity.
- Does applying with a broker hurt my score?
- A broker pulls your credit once and presents that single report to multiple lenders, which is gentler than applying at several banks yourself.
- How fast can I improve my score?
- Paying balances down below thirty percent of the limit can show up within one or two reporting cycles, so roughly thirty to sixty days.