If you’re planning to buy a home in Vancouver or anywhere in the Lower Mainland, one of the most important steps you can take early on is improving your credit score. Your credit score directly impacts your ability to secure a mortgage, what kind of interest rate you’ll get, and even how much home you can afford.
In Greater Vancouver’s highly competitive real estate market, where even a fraction of a percent on your mortgage rate can mean thousands of dollars in savings, boosting your credit score can give you a major advantage.
Why Your Credit Score Matters to Lenders
When you apply for a mortgage in British Columbia, lenders use your credit score to assess how risky it is to lend you money. A higher score = lower perceived risk, which can unlock lower rates, better terms, and a smoother approval process.
Here’s how credit scores are generally categorized in Canada:
- 760 and above – Excellent
- 725 to 759 – Very Good
- 660 to 724 – Good
- 560 to 659 – Fair
- Below 560 – Poor
To qualify for a mortgage with one of Canada’s top banks or A-lenders, you’ll typically need a score of at least 680–700, especially if you’re putting less than 20% down.
Ways to Increase Your Credit Score Overtime
1. Pay Down Credit Cards Strategically
One of the biggest factors in your credit score is your credit utilization ratio — how much of your available credit you’re using. Ideally, you should use less than 30% of your total credit limit at any time.
Tips to improve utilization:
- Pay down balances before your statement date, not just the due date
- Increase your credit limits (but don’t increase spending!)
- Pay off cards with the highest utilization first
2. Avoid Any New Credit Applications Before Your Mortgage
Every time you apply for a credit card, car loan, or even a retail financing plan, a hard credit check inquiry is recorded on your credit report. Too many hard checks in a short period can lower your score and make you look risky to lenders.
Best practices before home buying:
- Avoid financing big purchases such as cars, large furniture loans, etc.
- Don’t apply for new credit unless absolutely necessary
- Keep your oldest accounts open to preserve your credit history
3. Set Up Automatic Payments for Bills
Late payments, even by just a day or two, can cause significant damage to your credit score. One missed payment can stay on your report for up to 6 years in Canada.
Ways to avoid late payments:
- Set up auto-pay for your phone, internet, credit cards, and car loans
- Use calendar reminders for due dates
- Monitor statements closely and avoid letting small bills go unpaid
4. Review Your Credit Report for Errors
Did you know that a reporting error, such as an incorrect late payment or outdated balance could be dragging your score down without you knowing? It’s surprisingly common.
You can request a free copy of your credit report from:
- Equifax Canada (equifax.ca)
- TransUnion Canada (transunion.ca)
Look for:
- Incorrect balances
- Duplicate accounts
- Fraudulent accounts you didn’t open
- Missed payments that were actually paid
If you do find something, make sure to dispute errors promptly to get your score corrected.
5. Work with a Realtor and Mortgage Broker Early
If you’re aiming to buy a home in Vancouver, planning ahead is everything. We always recommend connecting with a trusted mortgage broker 3–6 months before you’re ready to buy. They’ll review your credit, suggest strategies to boost it, and help you understand what you can realistically afford.
At the same time, a local realtor (like Doma Group!) can guide you through how different price points affect your financing needs, especially in dynamic markets like Vancouver, Burnaby, or Port Moody where prices shift quickly.
Final Thoughts on How to Improve Your Credit Score Before Buying a Home
Improving your credit score before buying a home isn’t just about checking a box — it can literally save you thousands in interest and open the door to more buying opportunities across Greater Vancouver. Whether you’re a first-time buyer or looking to upsize, a strong credit score gives you the leverage you need in today’s fast-paced real estate landscape.
If you’re not sure where to start, we can connect you with trusted mortgage professionals who specialize in helping buyers boost their credit and secure better rates.
Let’s talk about your goals — and get your financial foundation set for your future home!