Boost Your Credit Score Before You Buy: Simple Steps for Mortgage Success

Why Your Credit Score Matters

Your credit score is more than just a number; it’s a snapshot of how you manage debt. Lenders use it to decide the rate and terms of your mortgage. A higher score often means lower interest rates and more loan options.

Tips to Improve Your Credit Rating

• Pay bills on time. Payment history has the biggest impact on your score. Setting up automatic payments or reminders can help you avoid late fees and dings to your rating.

• Reduce credit card balances. Try to keep your credit utilisation below 30%. Paying down existing balances shows lenders you’re not over‑extended.

• Check your credit report. Review your report for errors or outdated information. You can request a free copy from Canada’s credit bureaus and dispute inaccuracies.

• Limit new credit inquiries. Opening several new accounts in a short period can lower your score. Only apply for credit when necessary, and avoid closing old accounts you’re not using.

• Diversify your credit. Having a mix of credit types—like a car loan and a credit card—can help, as long as you manage them responsibly.

Be Patient and Persistent

Building or repairing credit doesn’t happen overnight. Consistency is key. Start implementing these habits at least six months before you plan to apply for a mortgage to give your score time to climb.

Getting your credit in shape is one of the smartest moves you can make before shopping for a home. A little preparation now can save you a lot of money in the long run—and set you up for mortgage success.

Ready to talk mortgages on your terms?

Whether you’re crunching numbers late at night or just day‑dreaming about your next home, I’m here for you. Call or text me at 519‑575‑1804, or send an email to cferguson@dominionlending.ca.

You’ll also find daily tips, market updates and a few lighthearted moments on my Facebook and Instagram feeds—follow @mortgagewithchar to join the conversation. My goal is to keep things simple, approachable and tailored to you.

Let’s chat whenever you’re ready!

Don’t Sign That Renewal Letter Yet! Why Shopping Around Matters

When your mortgage term nears its end, your lender will send you a renewal letter that often reads like a formality: sign here, lock in a new rate and carry on. But blindly accepting that offer can cost you more than you think. Banks and big lenders count on convenience; they know life is busy and that most people don’t shop around. That’s why renewal rates can be higher than what’s available elsewhere. By taking a little time to explore your options, you could save thousands in interest over your next term.

Shopping around at renewal is similar to shopping for insurance—you compare rates, terms and features from different lenders, including monoline lenders that exclusively deal in mortgages. These lenders often have lower overhead and may offer more competitive rates or flexible terms that fit your life better. A mortgage agent can access multiple lenders and negotiate on your behalf, giving you a broader view of what’s available. They’ll also assess whether you should consider switching from fixed to variable (or vice versa), consolidate debt, or even shorten your amortisation to pay off your mortgage faster.

Renewal time is also a strategic moment to revisit your financial goals. Are you planning major renovations, starting a business or considering an investment property? Maybe you’re eyeing retirement and want lower payments. Your mortgage term is a tool you can tailor to these goals. By speaking with a mortgage professional instead of automatically signing your lender’s letter, you gain the freedom to align your mortgage with where you are today—not where you were five years ago.

Ready to talk mortgages on your terms?

Whether you’re crunching numbers late at night or just day‑dreaming about your next home, I’m here for you. Call or text me at 519‑575‑1804, or send an email to cferguson@dominionlending.ca.

You’ll also find daily tips, market updates and a few lighthearted moments on my Facebook and Instagram feeds—follow @mortgagewithchar to join the conversation. My goal is to keep things simple, approachable and tailored to you.

Let’s chat whenever you’re ready!

Fixed vs. Variable Rate Mortgages – Which Fits Your Lifestyle?

Choosing between a fixed and variable rate mortgage can feel like trying to guess the weather months in advance—should you pack a raincoat or sunglasses? With a fixed‑rate mortgage, your interest rate stays the same for the entire term. That means predictable pay

ments, which can bring peace of mind if you’re on a strict budget or if rising rates would keep you up at night. Fixed rates may start a bit higher, but they insulate you from market swings driven by factors like inflation or Bank of Canada announcements. If you love stability and don’t want any surprises, fixed could be your jam.

On the flip side, variable or adjustable‑rate mortgages are tied to your lender’s prime rate, which moves when the Bank of Canada adjusts its overnight rate. Historically, variable rates have averaged lower than fixed rates over time. When rates fall, your interest cost drops too—which means potential savings. But the reverse is also true. If rates climb, your payments can go up or a bigger portion will go toward interest. Variable rates suit buyers with flexible budgets who can handle some fluctuation or who plan to refinance or move before rates rise dramatically. Think of it like taking the scenic route—you might enjoy unexpected scenery, but you should be comfortable with the journey.

So how do you choose? Consider your financial goals, tolerance for risk, and how long you plan to keep the mortgage. If you’re buying your forever home and love the idea of budgeting exactly, fixed may help you sleep better. If you’re comfortable riding the rate wave and want to maximise savings when rates are low, variable could be a smart bet. And remember—you don’t have to decide alone! Working with a mortgage agent lets you explore hybrid options or mix-and-match solutions that combine the best of both worlds.

Ready to talk mortgages on your terms?

Whether you’re crunching numbers late at night or just day‑dreaming about your next home, I’m here for you. Call or text me at 519‑575‑1804, or send an email to cferguson@dominionlending.ca.

You’ll also find daily tips, market updates and a few lighthearted moments on my Facebook and Instagram feeds—follow @mortgagewithchar to join the conversation. My goal is to keep things simple, approachable and tailored to you.

Let’s chat whenever you’re ready!