Review the report behind the score and distinguish credit utilization from the monthly payments used in mortgage ratios.
The number and the report do different jobs
Canadian credit scores generally range from 300 to 900, but there is more than one scoring model. The score you obtain yourself can differ from the one a lender uses. The report contains the underlying credit history, including borrowing and payment information. FCAC explains credit reports and scores.
No single number in this guide is an approval threshold for every lender. Treat your score as one part of the file, alongside the income, obligations and property being assessed. A score cannot tell you how much cash you have for closing.
Check the information before trying to improve the number
Review both Equifax and TransUnion reports. If information is wrong, gather supporting records and raise the issue with the credit bureau and the reporting lender. Disputing an error is free; accurate negative information cannot simply be erased because it is inconvenient. FCAC’s guide to correcting report errors.
Make a short issue log: account name, disputed detail, supporting document, contact date and outcome. Keep a resolved item on the list until you have checked the updated report. This turns an unclear “credit problem” into specific facts that can be followed up.
Understand utilization with a worked example
FCAC suggests trying to use less than 30% of available credit and emphasizes making payments on time. These are credit-management guidelines, not a guarantee of a particular score increase. Read FCAC’s credit-score guidance.
For a card with a $12,000 limit and a $4,200 balance, utilization is $4,200 Ă· $12,000 = 35%. Paying $1,800 reduces the balance to $2,400, or 20%. Those percentages are arithmetic; the example does not predict when a lender will see the update or how many score points may change.
Before using purchase savings for a payoff, compare the remaining closing cash and the revised borrowing plan. Do not spend the same money on both the card and the down payment.
Utilization is not your mortgage debt-service ratio
Utilization compares a revolving balance with its credit limit. A mortgage debt-service calculation instead uses accepted monthly obligations and qualifying income. Lower utilization and lower monthly debt payments may help different parts of a file, but they are not interchangeable.
For a simple illustration, a $400 monthly debt payment divided by $8,000 of gross monthly income is 5%. With other inputs unchanged, that $400 monthly obligation adds five percentage points to TDS. A $400 account balance is not automatically the same thing as a $400 required monthly payment.
Prepare without chasing a promised score
Checking your own credit report does not lower your score. FCAC explains personal credit checks. Keep payments current, track due dates and borrow only what you need. Review FCAC’s practical improvement steps.
Give the mortgage professional the relevant report context and use accurate debt payments in the residential calculator. If a debt will be paid before funding or from refinance proceeds, document the settlement plan separately. Compare the complete file rather than assuming a better score automatically produces a larger mortgage.
Put the figures into a scenario
Use the appropriate assumptions, compare the results and save a summary for your file.
Open the Residential Calculator →Sources and review
References checked September 22, 2026. Examples are illustrative; confirm the lender, insurer and program requirements for your situation.