This course is designed specifically for Rent To Home Now tenant buyers. In about 25 minutes, you'll learn how credit works in Canada, how to build it strategically, and exactly what you need to qualify for a mortgage at the end of your rent-to-own term.
6
Modules
25
Minutes
4
Quizzes
What You'll Learn
Module 1: What your credit score actually is and why it matters for your rent-to-own journey
Module 2: How to check your score for free and read your credit report like a pro
Module 3: Daily habits that build your score month over month
Module 4: Smart strategies for paying down debt and improving your ratios
Module 5: What Canadian mortgage lenders look for and how your R2HN program connects
Module 6: Your personal action plan and next steps
R2HN Tip
This course pairs directly with the credit coaching you'll receive from the Rent To Home Now team. Think of this as your foundation. If you have questions along the way, reach out to us any time.
Module 1
What Is a Credit Score?
⏲ About 4 minutes
Your credit score is one of the most important numbers in your financial life. It determines whether you can get a mortgage, what interest rate you'll pay, and how lenders see you. Let's break down exactly how it works in Canada.
Credit Scores in Canada
In Canada, credit scores are tracked by two bureaus: Equifax and TransUnion. Your score ranges from 300 to 900, and most lenders want to see at least 620 to 680 for a mortgage approval.
Canadian Credit Score Ranges
300500650750900
Poor
Fair
Good
Very Good
Excellent
Drag the slider below to explore what each range means:
650: Good. You're in range for many mortgage products.
The Five Factors That Make Up Your Score
Your credit score is calculated from five key factors. Here's how much each one matters:
35%
Payment History
Paying bills on time is the single biggest factor.
30%
Credit Utilization
How much of your available credit you're using.
15%
Credit History Length
How long you've had credit accounts open.
10%
Credit Mix
Having different types of credit (cards, loans, etc).
10%
New Credit Inquiries
Too many applications in a short time can lower your score.
Key Takeaway
Payment history and credit utilization together make up 65% of your score. Focus on those two and you'll see the biggest improvements.
📝 Quick Check
What is the biggest factor in your Canadian credit score?
That's right! Payment history is 35% of your score. Paying on time, every time is the most powerful thing you can do.
Not quite. Payment history at 35% is the biggest factor. Making every payment on time is the most powerful thing you can do for your score.
Module 2
How to Check Your Credit Score (For Free)
⏲ About 4 minutes
Many Canadians have never checked their credit report. You're entitled to see it for free, and knowing what's on it is the first step to improving it.
Free Ways to Check in Canada
Equifax: Request a free report by mail or pay for online instant access at equifax.ca
TransUnion: Request a free report by mail or through transunion.ca
Borrowell: Free Equifax score and weekly updates (borrowell.com)
Credit Karma: Free TransUnion score and monitoring (creditkarma.ca)
R2HN Tip
We recommend signing up for Borrowell (for your Equifax score) and Credit Karma (for your TransUnion score) so you can track both. They're completely free and checking through these services does not hurt your score.
What to Look for on Your Report
When you pull your credit report, here's what to focus on:
✓
Personal information: Make sure your name, address, and SIN-related info are correct.
✓
Account statuses: Check that all accounts show accurate balances and payment histories.
✓
Negative items: Look for late payments, collections, or public records (like a consumer proposal).
✓
Hard inquiries: See who has pulled your credit recently. Too many can lower your score.
✓
Errors or fraud: Dispute anything you don't recognize by contacting the bureau directly.
Common Mistake
A "soft inquiry" (like checking your own score) does not affect your credit. A "hard inquiry" (like a lender pulling your report for a loan application) can temporarily lower your score by a few points. Don't avoid checking your own score out of fear.
📝 Quick Check
Does checking your own credit score through Borrowell or Credit Karma hurt your score?
Exactly! Checking your own score is a soft inquiry. It has zero impact. Check as often as you want.
Actually, checking your own score through free tools is a "soft inquiry" and has absolutely no impact on your score. Check it as often as you like!
Module 3
Daily Habits That Build Your Score
⏲ About 5 minutes
Credit isn't built overnight. It's built through small, consistent habits repeated month after month. Here are the most effective strategies for Rent To Home Now tenant buyers.
1. Pay Everything on Time, Every Time
This is the golden rule. Payment history is 35% of your score. Even one missed payment can cause a significant drop, and it stays on your report for six years in Canada.
Practical Tip
Set up automatic payments or calendar reminders for every bill. Even the minimum payment counts as "on time." Late is late, whether it's one day or thirty.
2. Keep Credit Utilization Below 30%
Credit utilization is how much of your available credit you're using. If you have a credit card with a $1,000 limit, try to keep your balance under $300.
Credit Utilization Calculator
Credit Limit
$2,000
Current Balance
$800
Your utilization: 40% ⚠ Try to get below 30%
3. Get a Secured Credit Card
If you're rebuilding credit, a secured credit card is one of the best tools available. You put down a deposit (often $300 to $500) that becomes your credit limit. Use it for small purchases and pay it off every month.
Canadian banks like Capital One, Home Trust, and Refresh Financial offer secured cards designed for rebuilding credit.
4. Become an Authorized User
If a family member with good credit adds you as an authorized user on their card, their positive payment history can appear on your report too. You don't even need to use the card.
5. Keep Old Accounts Open
The length of your credit history matters. Even if you're not using an old credit card, keeping it open helps your score by showing a longer track record.
Your Monthly Credit Routine
Week 1: Check your score on Borrowell or Credit Karma. Week 2: Review your credit card statement. Ensure utilization is under 30%. Week 3: Verify all bills are paid or on auto-pay. Week 4: Check for any new items or errors on your report.
📝 Quick Check
You have a credit card with a $2,000 limit. What's the maximum balance you should carry to stay in the healthy range?
That's right! 30% of $2,000 is $600. Keeping your balance at or below that helps your score. Even lower is better!
The target is 30% or below. On a $2,000 limit, that means keeping your balance at $600 or less. Lower is even better, but 30% is the threshold to aim for.
Module 4
Paying Down Debt Strategically
⏲ About 5 minutes
Debt isn't just about owing money. It's about how that debt affects your credit score and your ability to qualify for a mortgage. Let's build a strategy.
Debt-to-Income Ratio (DTI)
Lenders look at your debt-to-income ratio, which compares your monthly debt payments to your gross monthly income. In Canada, there are two key ratios:
GDS (Gross Debt Service): Housing costs should be no more than 32% of gross income
TDS (Total Debt Service): All debt payments (housing + other debts) should be no more than 40-44% of gross income
Debt-to-Income Calculator
Monthly Income (gross)
$5,000
Total Monthly Debts
$1,200
Your TDS ratio: 24% ✔ You're in good shape!
Two Popular Payoff Strategies
The Avalanche Method (Save the Most Money)
Pay minimums on everything, then put all extra money toward the debt with the highest interest rate. Once that's paid off, move to the next highest. This saves you the most in interest over time.
The Snowball Method (Build Momentum)
Pay minimums on everything, then put all extra money toward the smallest balance first. Paying off a debt quickly gives you a psychological win and frees up cash to tackle the next one.
R2HN Recommendation
For most of our tenant buyers, the Snowball Method works best. The quick wins keep you motivated, and each debt you eliminate improves your credit utilization ratio.
Recovering from a Consumer Proposal or Bankruptcy
If you've gone through a consumer proposal or bankruptcy, rebuilding is absolutely possible. Here's what to know:
A consumer proposal stays on your credit report for 3 years after completion
A bankruptcy stays for 6 to 7 years after discharge (first-time)
You can start rebuilding immediately after discharge with a secured credit card
Many of our R2HN tenant buyers have successfully recovered and qualified for mortgages
The Two-Year Rule
Once a consumer proposal or bankruptcy has been discharged, mortgage lenders and insurers require a minimum of two years of clean credit history before you can qualify for a mortgage. "Clean" means no missed payments, no new collections, and responsible use of credit during that period. This is why starting to rebuild the moment you're discharged is so critical. Every month of good history counts toward that two-year window.
New Down Payment Requirement
If you've had a consumer proposal or bankruptcy, mortgage insurers now require a minimum 10% down payment rather than the standard 5%. This is important to plan for early in your rent-to-own journey. The good news is that R2HN helps all clients work toward that 10% through Option Consideration, which accumulates during your lease and is applied as your down payment when you exercise your option to purchase.
You're Not Alone
Many Rent To Home Now families start their journey while recovering from a credit event. That's exactly what our program is built for. The rent-to-own timeline gives you the space you need to rebuild, hit that two-year clean history mark, and work toward your 10% future down payment, all while living in your future home.
Module 5
Getting Mortgage Ready
⏲ About 5 minutes
The whole point of your rent-to-own journey is to qualify for a mortgage at the end. Here's exactly what Canadian lenders are looking for and how your R2HN program sets you up for success.
What Canadian Mortgage Lenders Want to See
CREDIT SCORE
620 - 680+
Minimum for most lenders. Higher scores unlock better rates and more options.
DOWN PAYMENT
10% Minimum
R2HN helps all clients work toward a minimum 10% future down payment through Option Consideration.
EMPLOYMENT
2+ Years
Stable employment history. Self-employed borrowers typically need 2 years of tax filings.
DEBT SERVICE
GDS 32% / TDS 44%
Your housing costs and total debts must stay within these ratios.
How Your R2HN Program Connects
Your Rent To Home Now agreement is designed to prepare you for mortgage qualification:
Option Consideration: A fee that accumulates during your lease and is applied toward your future down payment when you exercise your option to purchase
Fixed purchase price: You know exactly what your target is from day one
Timeline: Your term gives you the runway to build credit, reduce debt, and save
Support: Our team works alongside you to ensure you're on track for mortgage approval
The Stress Test
In Canada, all mortgage applicants must pass a "stress test." This means you need to qualify at your contract rate plus 2%, or at 5.25%, whichever is higher. Your R2HN timeline accounts for this, giving you room to strengthen your application.
📝 Quick Check
What is the minimum credit score most Canadian lenders want to see for a mortgage?
That's right! Most lenders want at least 620 to 680. A-lenders (big banks) typically want 680+, while B-lenders may approve at 620. Your R2HN program gives you the time to get there.
Most Canadian lenders look for a score between 620 and 680. A-lenders (major banks) typically want 680+, while B-lenders may work with scores starting at 620.
Module 6
Your Personal Action Plan
⏲ About 4 minutes
You've learned the fundamentals. Now let's turn that knowledge into action. Use the checklist below as your monthly roadmap.
Your First 30 Days
✓
Sign up for Borrowell (Equifax) and Credit Karma (TransUnion) to track both scores
✓
Pull your full credit report and review it for errors or unknown accounts
✓
Set up automatic payments for every recurring bill
✓
Check your credit utilization and plan to get it below 30%
✓
If needed, apply for a secured credit card to start building history
✓
List all debts and choose your payoff strategy (Snowball or Avalanche)
✓
Reach out to the R2HN team with any questions about your timeline
Ongoing Monthly Routine
Every Month, Do This
1. Check your credit score (both Equifax and TransUnion). 2. Verify all bills were paid on time. 3. Review your credit card balances and utilization. 4. Make extra payments toward your target debt. 5. Celebrate your progress, even small wins matter!
Remember
Credit building is a marathon, not a sprint. Most people see meaningful improvement within 6 to 12 months of consistent effort. Your Rent To Home Now program gives you the time and structure to make it happen. We're with you every step of the way.
Congratulations!
You've completed the Rent To Home Now Credit Building Course. Enter your name below to generate your certificate of completion.
Rent To Home Now
Certificate of Completion
Credit Building Course
has successfully completed the Rent To Home Now Credit Building Course, demonstrating a commitment to financial literacy and mortgage readiness.
