Know your Credit History before you buy.

Know your Credit History!

When you begin looking around for mortgage financing, it will become evident how important your credit history and score becomes.

Your credit score will determine what interest your mortgage broker will be able to offer you. It should be a priority for you because it can save you thousands of dollars. Whether you have had credit for a long time or are completely new and just beginning, the reality is that you will have to prove that you are a low enough risk for lenders to lend to.

What is a credit score?

In Canada, credit scores range from 300 (just getting started) up to 900 points, which is the best score. According to TransUnion, 650 is the magic middle number - a score above 650 will likely qualify you for a standard loan while a score under 650 will likely bring difficulty in receiving new credit.

What is a credit report?

A credit report is a look into your credit history. If you have taken a loan or used a credit card, you will have a credit history. Financial institutions, trust companies, credit companies and lenders that give you credit send information on whether or not you make payments on time to a credit-reporting agency.

Credit agencies collect information about you and how long it takes you to pay back money you have borrowed. This is is called your credit history.

Credit lenders rely on a credit agency to analyze an applicant’s current and past credit history in order to determine the likelihood of future repayment. This provides a fairly accurate indication of future repayment trends.

The two most popular credit bureau agencies operating in Canada are Equifax and Transunion. You can request your credit report by mail for free but your score is not included. If you request your credit report online a fee is charged and your credit score is included.

For a free credit report from Equifax, please follow this link:

For a free credit report from Transunion, please follow this link:

Janos Kantor

Janos Kantor

Sales Representative
CENTURY 21 Infinity Realty Inc., Brokerage*
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