How to Repair Your Credit While Working Toward a Mortgage in Canada

If your dream of homeownership is being delayed because of bad credit, you’re not alone. In Canada, thousands of aspiring homeowners are starting to learn how to repair their credit so they can qualify for a mortgage—especially after a divorce, job loss, or missed payments in the past.

The good news? You don’t need to hire an expensive credit repair company.

With the right strategy, you can repair your credit on your own—and do it faster than you think.

Whether you’re preparing for a Rent-to-Own exit or aiming to get mortgage approval in the next 12–24 months, here are the 5 best tips to boost your credit score quickly.

1. Get Your Free Credit Report (And Understand It)

Before you can fix your credit, you need to know what’s on your report.

In Canada, you can access your credit report for free from:

What to look for:

  • Missed or late payments

  • Collections (paid and unpaid)

  • Errors or outdated accounts

  • High credit utilization

Tip: Dispute any errors or duplicate entries immediately. They could be dragging your score down unfairly.

2. Pay Down Revolving Credit (Especially Credit Cards)

Your credit utilization ratio—how much you owe compared to your available credit—is one of the fastest ways to move your score.

Aim to keep balances under 30% of your credit limits. Under 10% is ideal.

Example: If your credit card has a $5,000 limit, try to keep the balance below $1,500.

Bonus Tip: Instead of paying just once a month, make two smaller payments to lower the balance before your statement date.

3. Set Up Automatic Payments to Help You Repair Your Credit (So You Never Miss Again)

Late payments can stay on your credit report for up to 6 years in Canada. Even one missed payment can hurt your score by 50+ points.

✅ Set up automatic minimum payments for all credit cards, loans, and bills.
✅ Add calendar reminders to pay more than the minimum whenever possible.

Pro tip: Even phone and utility bills can be sent to collections if left unpaid—so don’t ignore them.

4. Repair Your Credit with a Secured Credit Card or Credit Builder Loan

If your credit is limited or has been damaged, it’s time to rebuild new positive history.

✅ Secured Credit Card: You put down a deposit (usually $300–$500) and get a credit card with the same limit. Use it for small purchases and pay off in full.

✅ Credit Builder Loan: Some lenders offer small loans (e.g., $1,000) held in a savings account. You make monthly payments, and at the end, you get the money back—plus the benefit of reported payments.

Ask your Rent-to-Own provider or mortgage advisor for recommendations on reputable options.

5. Don’t Close Old Accounts (Unless Absolutely Necessary)

The length of your credit history matters. Closing old cards—even if you don’t use them—can hurt your score.

✅ Keep your oldest cards open
✅ Use them occasionally for small purchases
✅ Always pay them off in full

If a card has an annual fee and you don’t use it, ask the issuer if you can switch to a no-fee version.

Final Thoughts: You Can Do This

Repairing your credit takes time—but not as much time as you think.

With consistent effort, many buyers improve their score by 100+ points in under 12 months. And when paired with a Rent-to-Own plan, you can live in the home you want while working on your mortgage-readiness.

At Clover Properties, we’ve helped over 1,000 families become homeowners—even when they started with bruised credit. Our Ownable™ Rent-to-Own program is designed to give you the structure and support you need to succeed.

Ready to Start Your Homeownership Journey?

✅ [Get Pre-Qualified Now]
✅ Find out if Rent-to-Own is right for your situation
✅ Get connected with a credit-savvy mortgage expert

Remember: Bad credit is a chapter, not your whole story. With the right plan, you can own your home—and we’re here to help you make it happen.