A bad credit score can complicate the dream of homeownership, but it doesn’t make it impossible. In Canada, credit scores range from 300 to 900, and a score below 680 is generally considered bad for mortgage purposes. Mississauga mortgage broker Mary Sialtsis explains that scores below 600 are particularly problematic. Potential homebuyers can access their credit reports from Equifax or TransUnion annually for free to understand their full credit history. High balances and missed payments negatively impact scores, so maintaining balances below 50-60% of the credit limit is advisable. Those with poor credit should consider contacting a mortgage broker instead of a bank, as brokers can often find alternative lenders willing to work with them. Improving credit scores involves timely bill payments and keeping balances low. It can take years to repair credit, with lenders typically looking for two years of clean credit history. New Canadians or those without credit history should get a secured credit card to build their score. Having at least two different types of credit with a minimum limit of $2,500 each is ideal for proving creditworthiness to lenders.
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