How Does Your Credit Score Hold Up?

Team Gill • September 6, 2018

In an article released by the Canadian Mortgage and Housing Corporation (CMHC), it appears that those people who have a mortgage tend to be a little more credit worthy compared to those who don’t. It also points out that credit scores are quite steady across Canada.

If you’ve never seen your credit report, or it’s been a while since you have looked at your credit score, now would be a great time to make sure everything is as it should be. You have a couple options, firstly, you can access your report from Equifax Canada or TransUnion for a nominal fee, or if you have a mortgage renewal coming up or you plan on purchasing a property in the near future, we’d love to meet with you. We can look at your credit history and we can let you know where you stand. Contact us anytime!

For general purposes, credit score ranges can be grouped as follows:

  • Poor (less than 599);
  • Fair (600 – 659);
  • Good (660 – 699);
  • Very Good (700 – 749);
  • Excellent (more than 750)

Here are the main points of the CMHC article for you:

“Overall, mortgage holders tend to have better credit scores than other consumers.”

In Canada, the majority of mortgages are held by borrowers with a very good or an excellent credit score, a share that has been trending up since the third quarter of 2015, reaching 80.7% in the first quarter of 2017. The share of mortgage holders with an excellent credit score has increased by almost one percentage point in the first quarter of 2017 compared to the same quarter in 2016. This shows that the current outstanding mortgage debt is largely supported by consumers with healthy credit history.

While consumers with poor or fair credit scores are a small share of the market, they represent a more significant source of risk of default of payment and potential losses for lenders than all consumers with higher credit scores. The share of mortgage holders with a fair or poor credit score has dropped to 10.2%, in the first quarter of 2017, from 11.2% two years earlier.

Overall, mortgage holders tend to have better credit scores than other consumers. In the first quarter of 2017, 76.8% of consumers without a mortgage had a very good or an excellent credit score, a share 3.9 percentage points lower than among mortgage holders. Additionally, we find that this gap between mortgage holders and other consumers has been widening since the end of 2014, when the share of consumers with a very good or an excellent credit score was only 2.9 percentage points higher among mortgage holders than among other consumers. The widening of this gap has largely been driven by the improvement of scores among mortgage holders.

On the lower end of the spectrum, we find that 15.2% of consumers without a mortgage had a poor or fair credit score in the first quarter of 2017, which is 5 percentage points higher than consumers with a mortgage.

There are differences between cities, however;

Among Canada’s six largest metropolitan areas, only Edmonton and Calgary have a share of mortgage holders with a very good or excellent score lower than the Canadian average. Toronto is the area that has had the largest increase in the last 4 years, with a gain of 3.7 percentage points, followed by Vancouver, with a gain of 2.4 percentage points.

The shares of mortgage holders in Canada’s largest cities with a poor or fair credit score has been generally trending down in Montréal, Ottawa-Gatineau, Toronto and Vancouver, with the largest decreases reported in Toronto and Vancouver: decreases of 2.9 and 1.8 percentage points, respectively, from the first quarter of 2013 to the first quarter of 2017.

The share of mortgage holders in the two lowest credit score ranges remains more elevated in the oil-rich markets of Edmonton and Calgary.

In each of Canada’s six largest markets, the proportion of consumers with poor or fair credit scores is smaller among mortgage holders than among consumers without a mortgage.

Share

Sign up to to our newsletter to hear weekly updates on market news, timely buyer/seller tips, and up to date rates

SIGN UP
Mick & Sheila Gill
CANADIAN MORTGAGE EXPERTS
RECENT POSTS 

How to Raise Your Credit Score and Unlock Better Rates

By Team Gill • October 6, 2026
Want a Better Credit Score? Here’s What Actually Works Your credit score plays a major role in your ability to qualify for a mortgage—and it directly affects the interest rates and products you’ll be offered. If your goal is to access the best mortgage options on the market, improving your credit is one of the smartest financial moves you can make. Here’s a breakdown of what truly matters—and what you can start doing today to build and maintain a strong credit profile. 1. Always Pay On Time Late payments are the fastest way to damage your credit score—and on-time payments are the most powerful way to boost it. When you borrow money, whether it’s a credit card, car loan, or mortgage, you agree to repay it on a schedule. If you stick to that agreement, lenders reward you with good credit. But if you fall behind, missed payments are reported to credit bureaus and your score takes a hit. A single missed payment over 30 days late can hurt your score. Missed payments beyond 120 days may go to collections—and collections stay on your report for up to six years . Quick tip: Lenders typically report missed payments only if they’re more than 30 days overdue. So if you miss a Friday payment and make it up on Monday, you're probably in the clear—but don't make it a habit. 2. Avoid Taking On Unnecessary Credit Once you have at least two active credit accounts (like a credit card and a car loan), it’s best to pause on applying for more—unless you truly need it. Every time a lender checks your credit, a “hard inquiry” appears on your report. Too many inquiries in a short time can bring your score down slightly. Better idea? If your current lender offers a credit limit increase , take it. Higher available credit (when used responsibly) actually improves your credit utilization ratio, which we’ll get into next. 3. Keep Credit Usage Low How much of your available credit you actually use—also known as credit utilization —is another major factor in your score. Here’s the sweet spot: Aim to use 15–25% of your limit if possible. Never exceed 60% , especially if you plan to apply for a mortgage soon. So, if your credit card limit is $5,000, try to keep your balance under $1,250—and pay it off in full each month. Maxing out your cards or carrying high balances (even if you make the minimum payment) can tank your score. 4. Monitor Your Credit Report About 1 in 5 credit reports contain errors. That’s not a small number—and even a minor mistake could cost you when it’s time to get approved for a mortgage. Check your report at least once a year (or sign up for a monitoring service). Look for: Incorrect balances Accounts you don’t recognize Missed payments you know were paid You can request reports directly from Equifax and TransUnion , Canada’s two national credit bureaus. If something looks off, dispute it right away. 5. Deal with Collections Fast If you spot an account in collections—don’t ignore it. Even small unpaid bills (a leftover phone bill, a missed utility payment) can drag down your score for years. Reach out to the creditor or collection agency and arrange payment as quickly as possible . Once settled, ask for written confirmation and ensure it’s updated on your credit report. 6. Use Your Credit—Don’t Just Hold It Credit cards won’t help your score if you’re not using them. Inactive cards may not report consistently to the credit bureaus—or worse, may be closed due to inactivity. Use your cards at least once every three months. Many people put routine expenses like groceries or gas on their cards and pay them off right away. It’s a simple way to show regular, responsible use. In Summary: Improving your credit score isn’t complicated, but it does take consistency: Pay everything on time Keep balances low Limit new credit applications Monitor your report and handle issues quickly Use your credit regularly Following these principles will steadily increase your creditworthiness—and bring you closer to qualifying for the best mortgage rates available. Ready to review your credit in more detail or start prepping for a mortgage? I’m here to help—reach out anytime!

Everything You Need to Know About Mortgage Financing in Canada

By Team Gill • September 22, 2026
For most Canadians, buying a home isn’t possible without a mortgage. And while getting a mortgage may seem straightforward—borrow money, buy a home, pay it back—it’s the details that make the difference. Understanding how mortgages work (and what to watch out for) is key to keeping your borrowing costs as low as possible. The Basics: How a Mortgage Works A mortgage is a loan secured against your property. You agree to pay it back over an amortization period (often 25 years), divided into shorter terms (ranging from 6 months to 10 years). Each term comes with its own interest rate and rules. While the interest rate is important, it’s not the only thing that determines the true cost of your mortgage. Features, penalties, and flexibility all play a role—and sometimes a slightly higher rate can save you thousands in the long run. Key Questions to Ask Before Choosing a Mortgage How long will you stay in the property? Your timeframe helps determine the right term length and product. Do you need flexibility to move? If a work transfer or lifestyle change is possible, portability may be important. What are the penalties for breaking the mortgage early? This is one of the biggest factors in the real cost of borrowing. A low rate won’t save you if breaking costs you tens of thousands. How are penalties calculated? Some lenders use more borrower-friendly formulas than others. It’s not easy to calculate yourself—get professional help. Can you make extra payments? Prepayment privileges allow you to pay off your mortgage faster, potentially saving years of interest. How is the mortgage registered on title? Some registrations (like collateral charges) can limit your ability to switch lenders at renewal without extra costs. Which type of mortgage fits best? Fixed, variable, HELOCs, or even reverse mortgages each have their place depending on your financial and life situation. What’s your down payment? A larger down payment could reduce or eliminate mortgage insurance premiums, saving thousands upfront. Why the Lowest Rate Isn’t Always the Best Choice It’s tempting to chase the lowest rate, but mortgages with rock-bottom pricing often come with restrictive terms. For example, saving 0.10% on your rate may put a few extra dollars in your pocket each month, but if the mortgage has harsh penalties, you could end up paying thousands more if you break it early. The goal isn’t just the lowest rate—it’s the lowest overall cost of borrowing . That’s why it’s so important to look beyond the headline number and consider the whole picture. The Bottom Line Mortgage financing in Canada is about more than rate shopping. It’s about aligning your mortgage with your financial goals, lifestyle, and future plans. The best way to do that is to work with an independent mortgage professional who can walk you through the fine print and help you secure the product that truly keeps your costs low. If you’d like to explore your options—or review your current mortgage to see if it’s really working in your favour—let’s connect. I’d be happy to help.