Know Your Credit Score: Unlock Better Mortgage Rates Today

John Lee - Arise Mortgage
14 minutes ago
2 min read

When you're planning to buy a home, one of the most important numbers you need to pay attention to is your credit score. This three-digit number plays a huge role in mortgage approval and can significantly affect the interest rate you're offered.

At Arise Mortgage Corp., we help clients across Canada understand and improve their credit scores so they can get the lowest possible mortgage rates.

Why Does Your Credit Score Matter for a Mortgage?

Lenders use your credit score to determine how likely you are to repay a loan. A higher credit score means lower risk for the lender—which can result in:

Lower mortgage interest rates
Lower monthly payments
More flexible loan terms
Higher chance of approval

Example:

A buyer with a credit score of 780 could qualify for a 5-year fixed mortgage at 4.79%, while someone with a 640 score may face a rate of 6.29% or higher. That difference adds up to thousands of dollars in interest over the life of your mortgage.

What Is a Good Credit Score in Canada?

Knowing where your score falls on the scale is the first step to improving it:

Credit Score Range	Rating	Impact on Mortgage
760 – 900	Excellent	Best mortgage rates
725 – 759	Very Good	Very competitive rates
660 – 724	Good	Qualifies for most mortgages
560 – 659	Fair	Higher rates, limited options
300 – 559	Poor	Very difficult to qualify

How to Check and Improve Your Credit Score

You can check your credit score through services like Equifax, TransUnion, or your bank's online platform.

Tips to Improve Your Credit Score Before Applying for a Mortgage:

✅ Pay bills on time – Payment history is 35% of your score.
✅ Keep credit utilization below 30% – High balances hurt your score.
✅ Avoid applying for new credit before your mortgage.
✅ Check for credit report errors – Dispute inaccuracies.
✅ Keep old accounts open – A longer history helps your score.

Let Us Help You Get Mortgage-Ready

If you're thinking about buying a home but your credit score isn’t where you want it to be, we can help. Our team at Arise Mortgage Corp. specializes in guiding clients through the mortgage process, including credit score improvement strategies that lead to better mortgage options.