How to Establish New Credit in Canada 🇨🇦
And Why It Matters for Your Mortgage
Establishing credit can feel like a classic catch-22:
👉 You need credit to build a credit history,
👉 but you need a credit history to get credit.
So, where do you start?
đź•’ First, understand that building credit takes time.
If you're planning to apply for a mortgage, lenders typically want to see at least two active trade lines (credit cards, loans, or lines of credit), each with a minimum $2,500 limit, reporting for at least 2 years.
If you’re just getting started:
Apply for a secured credit card.
This type of card is backed by your own deposit and is often the easiest way to start building a credit history.
✔️ Make sure it reports to both Equifax and TransUnion.
Use it responsibly.
After 3 months of on-time payments, you’ll start generating a credit score.
Apply for a second trade line.
Once your credit starts to build, look into an unsecured credit card, or even a small car loan to strengthen your profile.
💡 Pro tip: Always make at least the minimum payment—on time, every time. Consistency is key.
Need a mortgage before your credit is fully established?
A co-signer could help you qualify. Let’s talk through your options.
📞 I’d love to help you create a plan to build your credit and qualify for mortgage financing. Connect with me directly to get started!
