Here is a simple explanation of Credit Ratings. (We are happy to answer detailed questions. Please ask!
Your credit history is recorded by either Equifax Canada or TransUnion Canada and likely both. You can visit the agencies’ websites in order to obtain your credit score and files but as well, your mortgage professional can help with this. A credit report (your credit files) is a “snapshot” of your credit history. It is one of the main tools lenders use to decide whether or not to give you credit.
There are many different ways to work out credit scores. The credit-reporting agencies Equifax and TransUnion use a scale from 300 to 900. The higher the score is the better of a credit risk you are (and likely the lower your interest rate or the likelihood that you will be able to purchase a home. Sometimes lenders may also have their own ways of arriving at credit scores as well as the two main sources.
Information on improving your credit rating. We have information on the factors that make up your credit score and how to improve what you do so that your credit score improves. Contact us for information and we will help you prepare to buy your first home!