Some people may find that their credit rating needs improvement if they are going to lock in a loan at an affordable interest rate. In this instance, you can help improve your credit score by:
  • Correcting any errors or misinformation that is showing up on your credit report.
  • Paying all your bills on time.
  • Cutting up or putting away your credit cards so you can focus on repaying debt rather than incurring it.
  • Consolidating your loans and credit card debt into one larger loan.
  • Avoiding going over the limit on your credit card. A high balance will have a greater impact on your credit score.
  • Restricting the number of applications for credit that you make. Too many inquiries into your credit with a short time may have a negative impact on your credit score.
  • Contacting your lenders and make inquiring about alternate repayment solutions if you need to do so.
  • Developing a plan to reduce your debit that includes evaluating your lifestyle and the money you are spending and puts any “found” money toward debt reduction.
  • Consulting a credit counselor. Canada has many not-for-profit agencies that can help you assess your options.
Even if your credit rating is not stellar, it doesn’t mean you cannot qualify for a mortgage loan. There are many institutions out there that will be willing to finance your loan, just be warned that this can come at a high cost since their interest rates are sure to be higher. A good mortgage broker can help you find an institution with the best interest available to you. This will let you assess whether homeownership needs to be postponed for a complete of years, or whether you can take the loan now and adjust the mortgage at renewal or after a couple of years clean payment history.