There is plenty to think about when you start imagining your next home. You might be comparing neighbourhoods in Lacombe, looking at a shorter commute to Red Deer or wondering whether a quieter community would suit your plans.
Before the listing search takes over, put a credit-report review on your homebuying list. It is a practical way to understand the information a lender may consider and raise questions while you are still planning.
You do not need to understand every code on the first read. Start with the details you recognise and make a note of anything that needs explaining.
Understand the report and the score
A credit report is a record of how you have used credit. It can include accounts, balances and payment history. Your credit score is a number calculated from information in that record.
Checking your own report or score does not lower your credit score. That is different from applying for new credit. Also, the score you see may differ from the one a lender uses. A number in an app is useful information, but it is not a mortgage approval.
The Financial Consumer Agency of Canada explains these differences in its guide to credit reports and scores.
FCAC guide to credit report and score basics
Find the free official options
You can obtain free credit reports from Equifax and TransUnion, Canada’s two main credit bureaus. TransUnion calls its report a Consumer Disclosure. A free report and a paid monitoring subscription are different services, so read the option you are selecting.
Use the links in FCAC’s guide to getting your credit report rather than an unexpected text or advertisement. Read the privacy information before entering personal details. Reviewing both reports is worthwhile because you want to check what each bureau has on file.
Choose a quiet time when you can read carefully. Keep the downloaded reports somewhere private, rather than in a shared family photo folder or an email chain.
FCAC guide to getting your credit report | TransUnion Consumer Disclosure
Read the details one section at a time
Begin with your name and personal information. Then review the accounts and payment records. Look for unfamiliar accounts, incorrect balances or a late payment you believe was actually made on time.
For a simple hypothetical example, suppose your report lists a payment as late, but your records show it was paid on time. The useful next step is to collect the statement or receipt and ask for an investigation. Guessing about the effect on your score will not resolve the underlying question.
Make a short private list of the items to check. You can separate something you do not understand from something you have evidence is wrong. That keeps the follow-up clear.
Follow up on information that looks wrong
You have the right to dispute information you believe is incorrect. Credit bureaus must correct errors without charging you. Gather supporting records, contact the relevant bureau and ask the lender or company that supplied the information to check its records.
A dispute is a request for an investigation, not a guarantee that an entry will be removed. Keep copies of what you submitted and any replies. If an unfamiliar account suggests possible fraud, follow the official fraud-reporting guidance promptly.
Avoid planning around a promised score increase or a guaranteed correction date. Ask what happens next and check the outcome before assuming the matter is resolved.
FCAC guidance on errors and fraud | Equifax dispute and complaint process
Bring the questions into your mortgage plan
Your credit information is one part of a mortgage application. Lenders also review financial details such as income and debts. Even a mortgage preapproval is not a guarantee of final financing.
Tell your mortgage professional if you are checking an item or waiting for a response. Ask what information they need and how to provide it securely. Keep credit reports and account numbers out of social messages and public comments.
You can begin this conversation before you have chosen a property. Bring your intended timeline and questions, whether you hope to buy soon or are preparing for a later move.
FCAC guidance on preparing for a mortgage | FCAC guide to mortgage preapproval
Common questions
Will checking my own report lower my score? No. Reviewing your own credit information does not lower your score.
Do I need a paid subscription? Not to obtain the free reports described in the official Equifax and TransUnion consumer services. Check the service details before signing up.
Will fixing an error guarantee a mortgage? No. A correction makes the record more accurate. Approval still depends on the lender’s assessment of the application.
A useful first step
Start with accurate information, keep a record of your questions and give yourself room to follow up. You do not need to have everything figured out before asking for help.
If you are preparing to buy in Central Alberta, I would be happy to talk through the mortgage questions with you. Reach out when you are ready.
General education only. Mortgage eligibility and terms depend on the lender, the property and your individual circumstances.
Written by Tara Nevers, Mortgage Broker with Prairie Key Mortgages, proudly helping families across Bentley, Lacombe, Ponoka, Rimbey, Sylvan Lake, Blackfalds, Red Deer, and Central Alberta.
Tara Nevers
Prairie Key Mortgages | Mortgage Architects
403-877-6995 | tara@prairiekeymortgages.com
