How to Improve Your Credit Score Before Buying

Your credit score is one of the first things a lender looks at — and it can shape your interest rate, how much you can borrow, and whether you're approved at all. The good news: with a few consistent habits, most buyers can improve their score before they apply. Here's how to strengthen your credit before you buy.

Key takeaways

• Pay every bill on time — payment history is the biggest factor in your score.
• Keep credit-card balances low relative to your limits (aim well under 30%).
• Don't open or close lots of accounts right before applying for a mortgage.
• Check your credit report for errors and dispute anything inaccurate.
• HOMEH's Cashback Rebate, the industry's highest, rewards you once you're approved.

Why your credit score matters

Lenders use your credit score to judge how reliably you repay debt. A higher score can unlock a lower mortgage rate and a smoother approval, while a low score can limit your options or push you toward higher rates. For the threshold lenders look for, see the credit score you need to buy a house.

Small rate differences, big dollars

Over a 25-year mortgage, even a fraction of a percentage point in rate can add up to thousands of dollars — which is why improving your score before you apply is worth the effort.

Pay on time, every time

Payment history is the single biggest driver of your score. A single missed payment can hurt, and the damage lingers. Set up automatic minimum payments so nothing slips, then pay the full balance whenever you can.

Lower your credit utilization

Credit utilization — how much of your available credit you're using — is the second-biggest factor. Carrying high balances signals risk. Aim to keep your balances well below your limits.

Avoid these common mistakes

Some well-meant moves can backfire in the months before you apply.

• Don't apply for several new credit products at once — each hard check can ding your score.
• Don't close your oldest card — it can shorten your credit history.
• Don't max out a card just before applying for a mortgage.
• Don't ignore your report — check it and dispute any errors.

Check your report and stay steady

Request your credit report, confirm the accounts and balances are accurate, and dispute mistakes with the credit bureau. Then keep your finances steady — especially once you have a pre-approval, since lenders re-check before closing. See how that ties into how a pre-approval strengthens your offer.

Strong credit, plus HOMEH cashback

Once your credit is in good shape and you're ready to buy, HOMEH rewards you further. Eligible buyers receive the industry's highest Cashback Rebate. Plan your full path in the first-time home buyer guide for Ontario and check your options with a HOMEH mortgage broker.

Good credit, real cashback

Eligible HOMEH buyers get the industry's highest Cashback Rebate. Estimate yours with the cashback calculator.