Keep the home.
Move forward.

The Skip the Down Payment program — and any mortgage with less than 20% down — requires solid credit history. Here's what good credit looks like and how to build it.

If you don't have any credit history yet, start with secured Visas from Scotia Bank and Home Trust — they're easier to approve for and a great first step. You can track your score for free at www.equifax.ca.

Down payment ranges and what credit you'll need

• 0–4% down: excellent credit, score above 680
• 5–9% down: score of 620+, no late payments or collections in the last 2 years
• 10–19% down: score of 580+, no recent late payments or collections
• 20%+ down: multiple lenders available depending on your interest rate tolerance

Tips to bump up your credit score

• If you've missed payments, try to open or maintain three credit accounts with perfect repayment going forward. (Student loans don't count.)
• Re-establishing payment history typically takes:
  • ~12 months for one missed payment
  • 2–3 years for 60- or 90-day late payments
  • 3+ years for written-off debts (excluding minor collections like cell phone bills)
• Consumer proposals and orderly payment of debt are treated like a bankruptcy for mortgage purposes — wait times are significantly longer.
• Keep credit utilization low. Utilization is the ratio of balance to total credit limit. 30% or under is ideal.
• If you plan to purchase a home within 24 months, do not finance a vehicle purchase — the high utilization of that debt will reduce your score and your mortgage approval chances.

Why closing cards can hurt you

Say you have these accounts:

Total utilization: $21,000 balance ÷ $50,000 total limit = 42% — that's healthy.

Now close Cards A and B (because you don't use them). New utilization: $21,000 ÷ $25,000 = 84% — that's bad. Your credit score could drop 50 points overnight.

When you're ready to revisit a mortgage — credit improved, debts paid down, or income increased — come back and run your numbers again. We're here when the time is right.