How to Raise Your Credit Score and Unlock Better Rates

Tanya Toye • November 5, 2025

Want a Better Credit Score? Here’s What Actually Works

Your credit score plays a major role in your ability to qualify for a mortgage—and it directly affects the interest rates and products you’ll be offered. If your goal is to access the best mortgage options on the market, improving your credit is one of the smartest financial moves you can make.


Here’s a breakdown of what truly matters—and what you can start doing today to build and maintain a strong credit profile.


1. Always Pay On Time

Late payments are the fastest way to damage your credit score—and on-time payments are the most powerful way to boost it.


When you borrow money, whether it’s a credit card, car loan, or mortgage, you agree to repay it on a schedule. If you stick to that agreement, lenders reward you with good credit. But if you fall behind, missed payments are reported to credit bureaus and your score takes a hit.

  • A single missed payment over 30 days late can hurt your score.
  • Missed payments beyond 120 days may go to collections—and collections stay on your report for up to six years.


Quick tip: Lenders typically report missed payments only if they’re more than 30 days overdue. So if you miss a Friday payment and make it up on Monday, you're probably in the clear—but don't make it a habit.


2. Avoid Taking On Unnecessary Credit

Once you have at least two active credit accounts (like a credit card and a car loan), it’s best to pause on applying for more—unless you truly need it.


Every time a lender checks your credit, a “hard inquiry” appears on your report. Too many inquiries in a short time can bring your score down slightly.


Better idea? If your current lender offers a credit limit increase, take it. Higher available credit (when used responsibly) actually improves your credit utilization ratio, which we’ll get into next.


3. Keep Credit Usage Low

How much of your available credit you actually use—also known as credit utilization—is another major factor in your score.


Here’s the sweet spot:

  • Aim to use 15–25% of your limit if possible.
  • Never exceed 60%, especially if you plan to apply for a mortgage soon.

So, if your credit card limit is $5,000, try to keep your balance under $1,250—and pay it off in full each month.


Maxing out your cards or carrying high balances (even if you make the minimum payment) can tank your score.


4. Monitor Your Credit Report

About 1 in 5 credit reports contain errors. That’s not a small number—and even a minor mistake could cost you when it’s time to get approved for a mortgage.

Check your report at least once a year (or sign up for a monitoring service). Look for:

  • Incorrect balances
  • Accounts you don’t recognize
  • Missed payments you know were paid


You can request reports directly from Equifax and TransUnion, Canada’s two national credit bureaus. If something looks off, dispute it right away.


5. Deal with Collections Fast

If you spot an account in collections—don’t ignore it. Even small unpaid bills (a leftover phone bill, a missed utility payment) can drag down your score for years.


Reach out to the creditor or collection agency and arrange payment as quickly as possible. Once settled, ask for written confirmation and ensure it’s updated on your credit report.


6. Use Your Credit—Don’t Just Hold It

Credit cards won’t help your score if you’re not using them. Inactive cards may not report consistently to the credit bureaus—or worse, may be closed due to inactivity.


Use your cards at least once every three months. Many people put routine expenses like groceries or gas on their cards and pay them off right away. It’s a simple way to show regular, responsible use.


In Summary: Improving your credit score isn’t complicated, but it does take consistency:

  • Pay everything on time
  • Keep balances low
  • Limit new credit applications
  • Monitor your report and handle issues quickly
  • Use your credit regularly


Following these principles will steadily increase your creditworthiness—and bring you closer to qualifying for the best mortgage rates available.


Ready to review your credit in more detail or start prepping for a mortgage? I’m here to help—reach out anytime!


Tanya Toye

Mortgage Broker

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How Property Type and Condition Influence Mortgage Financing

By Tanya Toye • August 19, 2026
Why the Property Matters When You’re Qualifying for a Mortgage When qualifying for a mortgage, lenders typically look at four core areas: Income Credit Down payment or equity The property itself Most buyers focus heavily on income, credit, and savings—and for good reason. But even if those boxes are checked, the property can still determine whether a mortgage is approved. Why Lenders Care About the Property From a lender’s perspective, the property is the collateral for the mortgage. In the unlikely event of default, they need to know the home can be sold quickly and at fair market value to recover their funds. Because of this, lenders are careful about the condition, value, and marketability of any property they finance. Homes that are in poor repair, unconventional, or overpriced can raise red flags—even when the borrower is well qualified. Appraisals Are Always Part of the Process Every mortgage requires an appraisal to confirm value. Insured mortgages (through CMHC, Sagen, or Canada Guaranty) often use an automated valuation model completed online. Conventional mortgages typically require a full, on-site appraisal by a certified appraiser. This appraisal is not optional and happens after an offer is accepted—not at the pre-approval stage. Why Pre-Approvals Aren’t a Guarantee A pre-approval is a great first step, but it only assesses you, not the property. Once you’ve made an offer, the lender must approve the specific home you’re buying. Understanding this upfront helps avoid surprises and confusion later in the process. The Risk of Buying Without a Financing Condition In competitive markets, buyers sometimes remove financing conditions to strengthen their offer. However, this comes with risk. If the appraisal comes back low—or the lender is concerned about the property’s condition—you could be denied financing after the offer is firm. In that scenario, your deposit may be at risk. Buying a Home That Needs Work If you’re considering a property that isn’t in perfect condition, there are solutions. A purchase plus improvements program allows you to buy a home and include renovation costs in your mortgage. The process is structured and requires planning, but it can be an excellent way to turn a fixer-upper into a great long-term investment. Final Thoughts Mortgage approval isn’t based solely on your finances—the property matters just as much. Knowing this ahead of time helps you make smarter offers, reduce risk, and plan more effectively. If you’re buying a property that needs work or want clarity on how a lender may view a specific home, feel free to reach out. I’d be happy to walk you through your options and help you plan with confidence.

What You Need to Know About Mortgages and Parental Leave

By Tanya Toye • August 12, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.