How your Canadian credit score is calculated
Equifax Canada and TransUnion Canada are the two credit bureaus that lenders pull. Your score (300 to 900) is built from payment history (~35%), credit utilization (~30%), length of credit history, credit mix, and recent inquiries. Above 760 is considered prime in Canada, you get the best mortgage and credit card rates. Below 660, you start paying a premium or getting declined. The two bureaus can show different scores because not all lenders report to both.
On a $500,000 mortgage with a 25-year amortization, the difference between a 5.0% rate (excellent credit) and 6.2% rate (fair credit) is roughly $350 a month, or about $105,000 over the life of the mortgage. The score is a number; the cash difference is a downpayment.
Closing your oldest credit card to ‘simplify’ your wallet. You shorten your credit history and shrink your total available limit, both of which can drop your score by 30 to 70 points. Keep no-fee old cards open.
A 60-second lesson on this, with a worked drill, lives inside the Finlo app. Free, forever, on the basics.