New to Credit? Let’s Build a Solid Foundation

Josh Perez • September 24, 2025

Starting from Scratch: How to Build Credit the Smart Way

If you're just beginning your personal finance journey and wondering how to build credit from the ground up, you're not alone. Many people find themselves stuck in the classic credit paradox: you need credit to build a credit history, but you can’t get credit without already having one. So, how do you break in?


Let’s walk through the basics—step by step.


Credit Building Isn’t Instant—Start Now

First, understand this: building good credit is a marathon, not a sprint. For those planning to apply for a mortgage in the future, lenders typically want to see at least two active credit accounts (credit cards, personal loans, or lines of credit), each with a limit of $2,500 or more, and reporting positively for at least two years.


If that sounds like a lot—it is. But everyone has to start somewhere, and the best time to begin is now.


Step 1: Start with a Secured Credit Card

When you're new to credit, traditional lenders often say “no” simply because there’s nothing in your file. That’s where a secured credit card comes in.


Here’s how it works:

  • You provide a deposit—say, $1,000—and that becomes your credit limit.
  • Use the card for everyday purchases (groceries, phone bill, streaming services).
  • Pay the balance off in full each month.

Your activity is reported to the credit bureaus, and after a few months of on-time payments, you begin to establish a credit score.



✅ Pro tip: Before you apply, ask if the lender reports to both Equifax and TransUnion. If they don’t, your credit-building efforts won’t be reflected where it counts.

Step 2: Move Toward an Unsecured Trade Line

Once you’ve got a few months of solid payment history, you can apply for an unsecured credit card or a small personal loan. A car loan could also serve as a second trade line.

Again, make sure the account reports to both credit bureaus, and always pay on time. At this point, your focus should be consistency and patience. Avoid maxing out your credit, and keep your utilization under 30% of your available limit.


What If You Need a Mortgage Before Your Credit Is Ready?

If homeownership is on the horizon but your credit history isn’t quite there yet, don’t panic. You still have a few options.


One path is to apply with a co-signer—someone with strong credit and income who is willing to share the responsibility. The mortgage will be based on their credit profile, but your name will also be on the loan, helping you build a record of mortgage payments.


Ideally, when the term is up and your credit has matured, you can refinance and qualify on your own.


Start with a Plan—Stick to It

Building credit may take a couple of years, but it all starts with a plan—and the right guidance. Whether you're figuring out your first steps or getting mortgage-ready, we’re here to help.

Need advice on credit, mortgage options, or how to get started? Let’s talk.


Josh Perez
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Divorce and Your Mortgage: What You Need to Know

By Josh Perez • November 12, 2025
Going Through a Separation? Here’s What You Need to Know About Your Mortgage Separation or divorce can be one of life’s most stressful transitions—and when real estate is involved, the financial side of things can get complicated fast. If you and your partner own a home together, figuring out what happens next with your mortgage is a critical step in moving forward. Here’s what you need to know: You’re Still Responsible for Mortgage Payments Even if your relationship changes, your obligation to your mortgage lender doesn’t. If your name is on the mortgage, you’re fully responsible for making sure payments continue. Missed payments can lead to penalties, damage your credit, or even put your home at risk of foreclosure. If you relied on your partner to handle payments during the relationship, now is the time to take a proactive role. Contact your lender directly to confirm everything is on track. Breaking or Changing Your Mortgage Comes With Costs Dividing your finances might mean refinancing, removing someone from the title, or selling the home. All of these options come with potential legal fees, appraisal costs, and mortgage penalties—especially if you’re mid-term with a fixed-rate mortgage. Before making any decisions, speak with your lender to get a clear picture of the potential costs. This info can be helpful when finalizing your separation agreement. Legal Status Affects Financing If you're applying for a new mortgage after a separation, lenders will want to see official documentation—like a signed separation agreement or divorce decree. These documents help the lender assess any ongoing financial obligations like child or spousal support, which may impact your ability to qualify. No paperwork yet? Expect delays and added scrutiny in the mortgage process until everything is finalized. Qualifying on One Income Can Be Tougher Many couples qualify for mortgages based on combined income. After a separation, your borrowing power may decrease if you're now applying solo. This can affect your ability to buy a new home or stay in the one you currently own. A mortgage professional can help you reassess your financial picture and identify options that make sense for your situation—whether that means buying on your own, co-signing with a family member, or exploring government programs. Buying Out Your Partner? You May Have Extra Flexibility In cases where one person wants to stay in the home, lenders may offer special flexibility. Unlike traditional refinancing, which typically caps borrowing at 80% of the home’s value, a “spousal buyout” may allow you to access up to 95%—making it easier to compensate your former partner and retain the home. This option is especially useful for families looking to minimize disruption for children or maintain community ties. You Don’t Have to Figure It Out Alone Separation is never simple—but with the right support, you can move forward with clarity and confidence. Whether you’re keeping the home, selling, or starting fresh, working with a mortgage professional can help you understand your options and create a strategy that aligns with your new goals. Let’s talk through your situation and explore the best path forward. I’m here to help.

The Strategy Beats the Rate: Why Smart Mortgage Planning Matters More Than Falling Rates

By Josh Perez • November 5, 2025
Mortgage rates in Canada have been falling for most of the past year—and while that sounds like great news, I always encourage clients to pause and look deeper. A quarter-point rate drop might sound huge in the headlines, but in reality, it only saves the average buyer less than $100 a month . Don’t get me wrong—every bit helps—but that small difference isn’t what’s going to change your financial future. “The strategy beats the rate every single time.” — Josh Perez What really matters is how your mortgage is structured—because that’s where the long-term wins happen. Here’s how I approach it with my clients: Focus on Affordability Don’t just chase the lowest rate on paper. The real goal is a monthly payment that fits your lifestyle today while still leaving room for savings, investments, and emergencies. That’s what keeps you comfortable, not stressed. Think Beyond the Mortgage Your mortgage can be more than a payment—it can be a wealth-building tool . Smart amortization choices, extra payments, or using equity strategically later on can make a massive impact on your financial growth. “The right mortgage choice depends on your long-term plan, not just today’s rate.” — Josh Perez Plan for Flexibility If you choose a fixed term, understand the penalties that come with breaking it early. If you prefer variable, be sure you’re comfortable with the payment swings and how they impact your principal over time. The truth is, the “best” mortgage isn’t the one with the lowest rate—it’s the one that’s aligned with your goals, timeline, and flexibility needs . So yes—let’s enjoy the benefits of lower rates, but don’t let the headlines distract you from the bigger picture. The structure of your mortgage—and how it fits into your overall financial plan—is what really moves the needle. If you want to see how this looks with your actual numbers, let’s build a custom strategy together. Schedule a call with me today and I’ll show you exactly how to make your mortgage work smarter for you.