Credit Check Primer

An important part of a successful mortgage application is the credit check.

A credit check is a report from one of the credit bureaus in Canada – either Equifax or Transunion.  The report lists a person’s debts and monthly payments.  The report includes

·      credit cards,

·      lines of credit,

·      student loans

·      personal loans

·      car loans

A credit report will also have a score based on how well a person has managed their debts.

Please be prepared to discuss your credit history with your mortgage broker in the first meeting.  You don't need a credit check in advance, but be prepared to discuss your overall credit situation. The discussion is confidential and it is critical to helping you be successful in buying your home. 

The mortgage broker will tell you the impact of your credit history.  If everything is good, you will be confident in making an offer for a home.  If you had some difficulties with your credit history, the mortgage broker can strategize with you to overcome the issue.  Credit reports are complicated, and you will benefit from professional analysis.

The two credit bureaus in Canada are Equifax and TransUnion.  For your reference you can go online to www.equifax.ca and www.transunion.ca.