A strong credit score is the secret to securing the best mortgage rates and financing options. Whether you're planning to buy your first home, upgrade, or invest, a credit score of 680 or higher can open doors to more opportunities and save you thousands of dollars over the life of your loan. 

Here are 5 strategies to help you build and maintain a favorable credit profile.  

1. Lower Your Credit Utilization 

Your credit utilization (how much of your available credit you’re using) is one of the most significant factors affecting your score. Always aim to keep it below 30%.  

Expert Tip: Pay down balances at least 3 days before your statement date to lower your utilization ratio and boost your score quickly.  

2. Never Miss a Payment 

Your repayment history is critical. Late payments on credit cards, car loans, or even phone bills can impact your score.  

Expert Tip: Set reminders on your phone 3 days before due dates to ensure you never miss a payment. Another excellent method to help accelerate positive momentum is to make two smaller payments within one cycle. 

3. Keep Old Credit Accounts Open 

Closing old accounts can shorten your credit history and increase your utilization ratio. 

Expert Tip: If annual fees are a concern, ask your credit card issuer to downgrade to a no-fee card instead of closing the account. 

4. Accept Credit Limit Increases 

A higher credit limit can lower your utilization ratio, which is great for your score.  

Expert Tip: Accept limit increases when offered, but do not increase your spending to ensure you keep your finances in check. 

5. Monitor Your Credit Report 

Errors on your credit report can drag your score down. Regularly review your report from Equifax or TransUnion to ensure everything is accurate. You can register for free monitoring with either Borrowell or Credit Karma.   

Expert Tip: Dispute any inaccuracies immediately to maintain a clean credit profile. 

Why Does This Matter? 

A strong credit profile will improve your chances of obtaining mortgage approval and ensure you can secure the most competitive rates. If you’re planning to buy now or sometime in the future, taking these steps today will make a significant and positive impact tomorrow! Do you have questions? Please reach out as I’m here to assist with all your real estate and mortgage needs. I’m located in Ottawa and servicing all of Ontario. 

Let’s work together to make your homeownership dreams a reality. 

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As most have already heard, the BoC has cut its benchmark interest rate by a quarter-percentage point today.

So as we stand, the policy rate is 3% which is welcomed by many home owners with variable rate mortgages and those with line of credit. This was the 6th consecutive rate cut and deemd to be the end of “quantitative tightening.” Having said that BoC also warned that the stability and resilience of the Canadian economy will be tested if tariffs are implemented and trade wars break out between Canada and the United States of America as this could rapidly shift the economic landscape—and with it, the real estate market.

Here’s why tariffs have the potential to negatively effect our real estate sector. 

Retaliation and Inflation

Tariffs don’t operate in isolation. If the U.S. imposes significant tariffs on Canadian goods, Canada is likely to retaliate with its own tariffs which could lead to more costly goods and thus increased inflation. 

Economic Strain on Households

Increased inflation reduces purchasing power. Everyday goods become more expensive, leaving less disposable income for housing investments. For real estate, this means fewer buyers and tighter budgets, further challenging market stability.

Uncertainty in Rate Movements

The Bank of Canada’s response to these challenges is far from predictable. If inflation spikes dramatically, the BoC may reverse course, hiking rates to counteract rising prices. However, if the economic impact of tariffs proves catastrophic—such as widespread layoffs in industries like automotive—the BoC could instead cut rates to stimulate the economy and stave off disaster.

At this point, we don’t know what the future holds. For the time being it is important to stay up to date and work with a highly knowledgable realtor who can provide solid guidance and help you stay informed. 

Here are some key strategic moves to consider:

1. Educate yourself on the Temporary Nature of Rate Cuts

Make sure you understand that current rates are unlikely to remain low if tariffs lead to inflationary pressures. For buyers, this might mean acting quickly to secure financing before rates rise. For sellers, timing will be critical to capitalize on potential short-term demand.

2. Anticipate Inflation’s Impact

Monitor goods and services that influence construction, renovation, and property maintenance costs. Inflation in these areas could affect property values, particularly in suburban or rural areas where buyers are more price-sensitive.

3. Focus on Stable Markets

Listings in sectors or regions that are less vulnerable to economic shocks will thrive. For example, properties in diversified job markets or areas with strong foreign investment may remain more resilient.

4. Adapt Mortgage Advice

With the possibility of fluctuating rates, variable-rate mortgages might still be a smart option for risk-tolerant clients. However, ensure you are fully informed about the potential for rates to increase later in the year.

5. Track Foreign Investment Trends

A weaker Canadian dollar, caused by economic turmoil, could attract foreign buyers to major urban centers like Toronto and Vancouver. Stay attuned to exchange rate fluctuations and adjust your strategies to cater to this demand.

There you have a few strategies and thoughts to consider as you navigate your real estate journey during these unstable times. 

I will close out by saying, if you are considering buying or selling within the next 6 months, take action now. Connect with a knowledgable Realtor and mortgage agent who can guide you and help you prepare. This is an opportune time for Buyers and Sellers. Do not wait, lock in your rate now. Find Your best Rate

Whether you are interested in buying or selling real estate, know I am here to help guide you every step of the way.

If you have any questions about real estate from home evaluations to mortgages to searching for properties in your area, don't hesitate to contact me today!