What is a bad credit score, and will you still be able to get a mortgage if you have one?
Mary Sialtsis, a mortgage broker in Mississauga, Ont., said it's not impossible to make the dream of homeownership a reality, but there are some challenges that come with a poor credit score.
Bad credit scores don't have to crush anyone's dreams of homeownership, but it's important to know the reality of your situation.
Credit scores in Canada range from 300 to 900, with higher scores being considered optimal.
What is considered bad credit varies, but Sialtsis said in an interview with CTV's Your Morning Thursday that – when it comes to mortgages – most lenders are looking for a minimum score of 680.
"Generally anything below 680 is considered bad. The worst, by far, is anything below 600," Sialtsis said.
Consumers can find out their full credit history by requesting it from Equifax or TransUnion, and they can do this once a year for free. The report will provide a full breakdown, she said.
Those just looking for their credit score, not a full report, may be able access this through online banking services or their banking app, some of which offer regular updates.
Missed payments can lead to what Sialtsis prefers to call "bruised" credit, but even if you're making your minimum payments, another thing can be hurting your score: having a high balance.
"Even though you're paying on time, consistently carrying high balances will have an impact on your score," she explained.
Consumers should keep their credit card balance below 60 per cent of the limit, she recommended, saying below 50 per cent of the limit would be even better.
Those with "bruised credit" should know what their options are when looking for a mortgage, and what will likely be ruled out.
According to Sialtsis, regular banks won't be able to help them if their score is below the threshold.
She said would-be buyers should first contact a mortgage broker or mortgage professional, who will be able to work with them while shopping around for rates.
Some brokers even advertise that they'll work with clients who have bad credit, trying to get buyers approved even if they've been turned down by their bank.
Brokers may be able to help with other types of mortgages, or with finding alternative lenders.
Even if they are able to find a mortgage, people thinking about buying a home should try to start "fixing" their credit, Siatalis said.
Paying your bills on time is the most impactful way to improve their credit score, Sialtsis said.
She recommended setting up automatic payments with online banking. Even setting this up so that banks take the minimum amount when bills are due will make life easier, she said.
It can take years to clean up your credit history, according to Sialtsis.
"So what lenders like to see after you've had a period of bruised credit is ... two years of clean credit history, meaning you've paid on time, your balances are kept lower, there aren't any derogatories or any kind of collection items," she said.
Sialtsis recommends newcomers to Canada and people without a credit history get a credit card immediately, even if it's a secured credit card.
Secured cards work somewhat like debit cards. The holder pays off the maximum balance before any money is spent, so there's no risk of a bill being missed, and the limit can be set low for those worried about accidentally overspending.
Sialtsis said it may feel "ridiculous" to have this type of pre-paid card, but can provide those who are new to credit with a lower-risk way to build up a score. Over time, as the holder proves themselves to be a good borrower, their credit score will improve and other borrowing options, including possibly mortgages, will become available.
As mentioned, those applying to borrow money for a vehicle or a home often need to have two years of good clean credit history.
In addition, Sialtsis said, lenders may prefer borrowers with at least two different methods of credit, such as a credit card and a line of credit or multiple credit cards. She said ideally those methods of credit have a minimum available limit of $2,500 each, to prove a borrower is responsible.
There is ongoing research to better understand the relationship between social connection and healthy aging, and why the brains of super agers look different compared with their peers.
Police say charges are pending after a boy was killed and his mother and sister were injured in a crash in south Edmonton on Thursday.
In a country traditionally dominated by two national airlines, a new set of aviation rivalries has emerged. Porter is increasingly moving in on Air Canada's home turf of Central Canada as well as cross-country routes, while WestJet seeks to counter the threat of Flair Airlines in a shift from the decades-old industry dynamic of sparring between the two biggest carriers.
As Florida's ban on "lab-grown" meat is set to go into effect next week, one manufacturer hosted a last hurrah — at least for now — with a cultivated meat-tasting party in Miami.
If you gathered all the wealth that billionaires currently have worldwide, you would have about US$14.2 trillion, according to Forbes Magazine. But what about in Canada alone?
Business owners have found that offering summer hours – a reduced schedule on Fridays, usually between Victoria Day and Labour Day — can be a way to boost employee morale. Workers are able to deal with summer childcare gaps, return to the office refreshed and feel like their job values them, owners say.
Friday night was a celebration of mistakes for a small group of body art enthusiasts.
Most of us have felt the freedom and delight that comes with stripping down to a swimsuit on a sunny day and wading into a cool sea, the horizon twinkling in the distance.
Scientists may be a step closer to that reality, thanks to new research that has identified six subtypes — or 'biotypes' — of major depression via brain imaging combined with machine learning.
A pedestrian in his 70s was struck and killed at an intersection in Brossard, on Montreal's South Shore.
The remains of a soldier from Newfoundland killed in the battlefields of France during the First World War will be laid to rest in St. John's Monday, bringing an emotional end to a years-long effort in a place still shaken and forever changed by the bloodshed.
One of the country's largest Pride events will culminate Sunday with a massive celebration. The Toronto Pride Parade will wind through the streets of the Ontario capital, with thousands expected to attend.
One man is in custody after a lengthy standoff with Windsor police.
A Maple Ridge, B.C. resident says her mother and mother-in-law’s first trip to Canada has ended on a frustrating note after their flight home was suddenly cancelled amid a strike at WestJet.
Travellers flying with WestJet continue to watch as the airline cancels more flights due to a sudden strike by its mechanics union.
Voters across mainland France cast ballots Sunday in the first round of early parliamentary elections that could put the government in the hands of nationalist, far-right parties for the first time since the Nazi era.
The sound you might have heard after the presidential debate this past week was of voters falling between a rock and a hard place.
Storms in Switzerland and northern Italy caused extensive flooding and landslides, leaving at least four people dead, authorities said Sunday.
Female suicide bombers targeted a wedding, a funeral and a hospital in coordinated attacks in northern Nigeria that killed at least 18 people, local authorities said Sunday.
Even as a legal challenge is already underway over a new Louisiana law requiring the Ten Commandments to be displayed in classrooms, the details of how the mandate will be implemented and enforced remain murky.
When Hungary takes over the helm of the European Union on July 1, many politicians in Brussels will have the same thing on their minds: whether populist Prime Minister Viktor Orban will use the role to further his reputation as the bloc’s main spoiler.
A New Democrat member of Parliament has paid back a portion of the thousands of dollars she spent on a Christmastime trip for herself and her family that was paid for with public money.
Calls have intensified for Justin Trudeau to resign as head of the party he almost single-handedly pulled back from the brink after a decimating electoral defeat in 2011.
Is Canada's democracy truly under threat? Political scientists say while Canadian politics and institutions are facing a myriad of concerns, the situation isn't dire overall.
Scientists may be a step closer to that reality, thanks to new research that has identified six subtypes — or 'biotypes' — of major depression via brain imaging combined with machine learning.
Double check your sunscreen products before slathering up this long weekend, as Health Canada has recalled several lots across the country.
Millions of people who take multivitamins everyday may not be reaping the perceived health benefits, according to new research published in the Journal of the American Medical Association.
As Florida's ban on "lab-grown" meat is set to go into effect next week, one manufacturer hosted a last hurrah — at least for now — with a cultivated meat-tasting party in Miami.
Two NASA astronauts will stay longer at the International Space Station as engineers troubleshoot problems on Boeing's new space capsule that cropped up on the trip there. NASA on Friday did not set a return date until testing on the ground was complete and said the astronauts were safe.
Called 2024 MK, the space rock will make its closest approach to Earth Saturday morning, passing by at about three-quarters the distance from Earth to the moon. It was first spotted two weeks ago by a South African observatory and is about 393 feet to 853 feet (120 metres to 260 metres) wide.
Martin Mull, whose droll, esoteric comedy and acting made him a hip sensation in the 1970s and later a beloved guest star on sitcoms including 'Roseanne' and 'Arrested Development,' has died, his daughter said Friday. He was 80.
A court ruling on Friday put an involuntary manslaughter case against Alec Baldwin on track for trial in early July as a judge denied a request to dismiss the case on complaints that key evidence was damaged by the FBI during forensic testing.
While the Nicole Kidman-Zac Efron pairing should provoke curiosity, the tired beats of this romantic (and only occasional) comedy don’t rub together well enough to generate many sparks.
Business owners have found that offering summer hours – a reduced schedule on Fridays, usually between Victoria Day and Labour Day — can be a way to boost employee morale. Workers are able to deal with summer childcare gaps, return to the office refreshed and feel like their job values them, owners say.
In a country traditionally dominated by two national airlines, a new set of aviation rivalries has emerged. Porter is increasingly moving in on Air Canada's home turf of Central Canada as well as cross-country routes, while WestJet seeks to counter the threat of Flair Airlines in a shift from the decades-old industry dynamic of sparring between the two biggest carriers.
Are you retired and looking for some ideas to help make some extra money? Personal finance contributor Christopher Liew has some tips to help you earn some income in your golden years.
Most of us have felt the freedom and delight that comes with stripping down to a swimsuit on a sunny day and wading into a cool sea, the horizon twinkling in the distance.
There is ongoing research to better understand the relationship between social connection and healthy aging, and why the brains of super agers look different compared with their peers.
It's a conundrum parents are faced with every summer: What should their children do during their break?
German police said Sunday they believe a man who scaled the roof of the stadium as Germany played Denmark at Euro 2024 was a would-be photographer and they have no evidence he intended to hurt anyone.
Vladimir Guerrero Jr. doesn't see himself as the Toronto Blue Jays clubhouse leader, but his recent hot streak is certainly leading by example.
General managers wheeled and dealed Saturday in Sin City.
Transport Canada recalled various vehicles over the last week, including Kia, Toyota, Volkswagen and Porsche cars.
It used to be cash was king and that you could get a better deal if you paid for a car in full, but now many dealers want you to finance your purchase so they can make more money.
Several stolen vehicles believed to have been used in organized and serious crime, including one homicide, have been found in Alberta during an investigation into an auto theft ring.
A grandfather and grandson duo proudly graduated alongside each other at the same northern Manitoba school.
A large basking shark was captured close to the shoreline on Nova Scotia's Eastern Shore.
The world's largest hockey stick could soon become the world's most in-pieces hockey stick as a Vancouver Island community prepares to tear down and carve up the Canadian landmark.
For half a decade, a Saskatoon family has been trying to bring their orphaned niece to Canada, they say now it’s a matter of life or death.
The Winnipeg Art Gallery- Qaumajuq recently discovered that one piece in its collection is a fake and part of a massive art forgery ring that included more than 1,500 pieces.
Six-year-old Bruce Arthur Chang is the new grand champion of Canada in the UCMAS math competition, and says he is hoping to make a mark on the international stage.
Harold Brenton Anderson, who wore high heels for decades in Halifax and loved to travel, has died.
An Ottawa cat has morphed into a TikTok star, as he's slimming down from weighing 43 pounds.
Bill Neald is still living out his passion of playing baseball at the age of 90 in Regina’s Senior Mixed Slo-Pitch League.
A Maple Ridge, B.C. resident says her mother and mother-in-law’s first trip to Canada has ended on a frustrating note after their flight home was suddenly cancelled amid a strike at WestJet.
Dozens of WestJet flights have been cancelled at airports across B.C. Saturday after the airline's mechanics' union went ahead with strike plans Friday evening.
Metro Vancouver Transit Police say they handed out 334 tickets to drivers across the region during a four-day crackdown on misuse of bus lanes.
One of the country's largest Pride events will culminate Sunday with a massive celebration. The Toronto Pride Parade will wind through the streets of the Ontario capital, with thousands expected to attend.
Travellers flying with WestJet continue to watch as the airline cancels more flights due to a sudden strike by its mechanics union.
One person is dead after a triple shooting at a party in Hamilton early Sunday morning, police say.
The city is entering the final stages of resuming water service through its repaired feeder main, as water consumption continues to fall below the city’s threshold level.
Demerio Houston did his part and then watched as Rene Paredes emerged as the overtime hero.
Travellers flying with WestJet continue to watch as the airline cancels more flights due to a sudden strike by its mechanics union.
A pedestrian in his 70s was struck and killed at an intersection in Brossard, on Montreal's South Shore.
Montreal police (SPVM) are investigating two separate assaults that led to stabbings where both victims were sent to the hospital.
There remains a severe thunderstorm watch in place on Sunday for Montreal and some surrounding areas and thunderstorm warnings in place across Quebec.
A dead person was found in Mill Creek Ravine on Saturday and Edmonton police are investigating the death as suspicious.
Travellers flying with WestJet continue to watch as the airline cancels more flights due to a sudden strike by its mechanics union.
Police say charges are pending after a boy was killed and his mother and sister were injured in a crash in south Edmonton on Thursday.
The recent construction of seasonal homes at a Cape Breton golf course is proving to be a hole-in-one on the national stage.
The remains of a soldier from Newfoundland killed in the battlefields of France during the First World War will be laid to rest in St. John's Monday, bringing an emotional end to a years-long effort in a place still shaken and forever changed by the bloodshed.
It was a tale of two restaurants in Sydney, N.S., on Saturday as one popular eatery reopened for a couple of days, while another has temporarily closed.
Water towers in Manitoba have seen a transformation over the years. While some of these pieces of infrastructure, which were designed to bring water to residents, have faded and disappeared over time, others have begun a new life – places that showcase history, where memories are made and a sense of pride is born.
Paredes kicked a 52-yard field goal to lead the Calgary Stampeders (2-1) to an exciting 22-19 win over the Winnipeg Blue Bombers (0-4) in front of 22,386 fans at McMahon Stadium on Saturday night.
More and more WestJet flights are getting cancelled due to an ongoing labour dispute between the airline and its mechanics.
Regina police are seeking assistance after a man suffered an injury late Friday night in the North Central neighbourhood.
Gamers from all across Saskatchewan battled it out over the weekend, making for a fun showdown at the Lazy Owl in Regina.
After a group of hikers became stranded by an unexpected rise in water levels, RCMP officers on-scene took to the skies to track them down.
Members of a pro-Palestinian encampment at the University of Waterloo have broken their silence surrounding a lawsuit and injunction filed by the school.
Officials say no one was hurt after flames destroyed the front porch of a Kitchener home on Friday.
The strike at a Cargill meat processing plant in Guelph has now entered its second month, leaving many employees in a difficult situation.
More than one hundred walkers showed up in Saskatoon on Saturday to raise awareness for domestic abuse and homicide in the city.
A 38-year-old man from Prince Albert is recovering in Saskatoon after being struck by a car on Friday night.
Saskatchewan may consider a ban on cellphone use in classrooms.
A Greater Sudbury senior says she will be homeless after being evicted from her apartment.
There is ongoing research to better understand the relationship between social connection and healthy aging, and why the brains of super agers look different compared with their peers.
Transport Canada recalled various vehicles over the last week, including Kia, Toyota, Volkswagen and Porsche cars.
Fire crews were called to the scene of a detached garage fire in the 100-block of Springbank Drive late Saturday night.
A man has been charged by Owen Sound police after allegedly attacking someone with a knife.
Cloudy conditions will linger before the sun comes out this long weekend.
Review buses, parking and firework regulations information for city services affected on Canada Day.
Eyewitness photos and video show an OPP cruiser that caught on fire amid an aggravated assault investigation in Orillia.
Six people are in hospital after a crash near Alliston Saturday morning.
One man is in custody after a lengthy standoff with Windsor police.
As Bob Stevenson approaches his 100th birthday, he continues to drive independently, tend to his garden daily, and make time to visit his 92-year-old fiancée.
The Windsor Police Service (WPS) has arrested two suspects who allegedly stabbed one another during a dispute.
Dozens of WestJet flights have been cancelled at airports across B.C. Saturday after the airline's mechanics' union went ahead with strike plans Friday evening.
Police have released surveillance video of two vandalism incidents at a rainbow crosswalk in Langford, B.C., and are appealing to the public to help identify the suspects involved.
Is Canada's democracy truly under threat? Political scientists say while Canadian politics and institutions are facing a myriad of concerns, the situation isn't dire overall.
Mounties in Kelowna say a suspect is at large after a man was stabbed in the city Sunday afternoon.
Police are remaining tight-lipped about a woman’s death in a Kelowna park on Friday.
Police have identified a man found dead in B.C.’s Interior last weekend as Donald “Donnie” Lyons.
With the recent moisture and cooler temperatures, fire bans and restrictions in the Lethbridge area are no longer in effect.
Plenty of tourists will descend on Lethbridge to see what the city offers. Locals, too, will have no shortage of activities this weekend.
The 122-year-old Raymond Stampede is set to get underway this weekend, but this year’s event will occur at a new location.
Municipal officials and provincial police are baffled by the theft of some unique deer in the northern Ontario community of Elliot Lake.
Many areas in northeastern Ontario are under a severe thunderstorm watch – with some now under severe thunderstorm warnings, Environment Canada said Saturday.
Police in Thunder Bay have been cleared in an incident in which an officer shot at a suspect waving a replica handgun with a less-lethal weapon.
The remains of a soldier from Newfoundland killed in the battlefields of France during the First World War will be laid to rest in St. John's Monday, bringing an emotional end to a years-long effort in a place still shaken and forever changed by the bloodshed.
It was a battle ripped from the pages of a storybook: Ten soldiers held off hundreds of German troops to save a small French village in the First World War.
A judge dismissed all sexual misconduct charges against a Newfoundland lawyer Thursday, saying repeated inconsistencies and falsehoods in the complainant's accounts eroded her credibility and left him unable to believe her allegations.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
