Your credit rating affects all aspects of your financial activities, even when it comes to borrowing money for your home. Your credit report itself is simply a listing of all of your mortgage and consumer debt. A mortgage professional can help you obtain a copy of this report and go through it with you to verify that all of the information is true and correct.
In Canada, the two main credit reporting agencies are Trans Union and Equifax. Every time you borrow money, or make a payment on a loan or credit card, the lender reports the information about the transaction to these two agencies. The accumulation of all of this information is called your credit report.
The credit score, or beacon score, is a number which gives mortgage lenders an idea of your lending risk. Credit scores range from 300 to 900, the higher your credit score the better. The mortgage products and interest rate that you will qualify for are often determined by your credit score.
Remember, you have the legal right to obtain a copy of your credit report.
The good news is that your credit report is a working document. This means that you have the ability over time, to repair any damaged credit and increase your credit score, providing you with more options to own your home faster.