What is the minimum credit score for a mortgage in Canada?

For CMHC-insured mortgages (down payment under 20%), the minimum credit score is 600 — but most lenders require at least 620–650 in practice. For conventional mortgages (20% or more down), lenders set their own minimums, typically 620–680. A score of 700+ puts you in a strong position for competitive rates at major Canadian banks.

What credit score do I need to get the best mortgage rate in Canada?

To access the best advertised mortgage rates from major Canadian banks and monoline lenders, you generally need a credit score of 720+. Scores above 760 typically qualify for top-tier pricing. Below 700, you may still be approved but with a slightly higher rate — the gap can be 0.10–0.30% depending on the lender.

Do both applicants need a good credit score for a joint mortgage?

On a joint mortgage application, lenders typically use both applicants scores — often the lower of the two middle scores. If one applicant has a score of 780 and the other has 620, many lenders use 620 for qualification purposes. Some lenders may use the primary borrower only. A co-applicant with poor credit can disqualify an application that the higher-score applicant would have qualified for alone.

Can I get a mortgage in Canada with a credit score under 600?

Yes, through B lenders (alternative / trust company lenders) or private mortgage lenders — but at significantly higher rates. B lenders typically charge 1–3% above A-lender rates. Private lenders charge 8–15%+ and often require 20–35% down. The additional interest cost over the life of a mortgage can be tens of thousands of dollars. Improving your score before applying is usually worth 6–12 months of waiting.

Which credit bureau do Canadian mortgage lenders check?

Most major Canadian banks pull both Equifax and TransUnion for mortgage applications and use the lower of the two scores (or a combined model). Some monoline lenders use one bureau. Ensure both your Equifax and TransUnion reports are clean before applying for a mortgage.

How long before applying for a mortgage should I improve my credit score?

Start at least 6–12 months before your target mortgage application date. Pay down credit card balances to under 30% utilization (3 months to reflect), resolve any collections or errors (1–3 months), and avoid new credit applications in the 3–6 months before applying.

Does getting pre-approved for a mortgage affect my credit score?

Yes. A mortgage pre-approval involves a hard inquiry, which can reduce your score by 5–10 points. However, multiple mortgage hard inquiries within a 14–45 day window are typically treated as a single inquiry by the credit bureaus (rate shopping protection). Limit mortgage-related applications to a concentrated window.

What Credit Score Do You Need for a Mortgage in Canada? (2026)

The minimum credit score for a Canadian mortgage approval is 600 — but that is the floor, not the target. Most major lenders require 680+ for competitive rates, and the difference between a 650 score and a 760 score can mean tens of thousands of dollars in additional interest over a 25-year amortization.

Credit score requirements by mortgage type

Mortgage Type	Minimum Score	Practical Qualification Score	Best Rate Score
CMHC-insured (under 20% down)	600	650+	700+
Sagen-insured (under 20% down)	600	660+	700+
Conventional uninsured (20%+ down, A lender)	620	680+	720+
B lender (alternative lender)	500–550	550+	N/A
Private lender	No minimum	Any with sufficient equity	N/A

How credit score affects your mortgage rate

Even within A-lender approval range, score bands affect your offered rate:

Credit Score Band	Rate Premium vs. Best Rate	Example ($500K, 25-year, 5-year fixed)
760+	Baseline rate	$2,720/month (illustrative at 5.0%)
720–759	+0.05–0.10%	+$15–$30/month
680–719	+0.10–0.25%	+$30–$75/month
640–679	+0.15–0.40%	+$45–$120/month
600–639	+0.30–0.60%	+$90–$180/month
Under 600 (B lender)	+1.5–3.0% above A rates	+$430–$870/month

Over 25 years at 1.5% higher rate: On a $500,000 mortgage, a 1.5% rate difference adds approximately $130,000–$160,000 in additional interest over 25 years.

What Canadian mortgage lenders look at beyond credit score

Credit score is one factor in mortgage underwriting. Lenders also assess:

Factor	What Lenders Look For
Credit score	620–680+ for most A lenders
Income verification	T4, NOA, or 2 years of T1 (self-employed)
Gross Debt Service ratio (GDS)	Under 39% of gross income
Total Debt Service ratio (TDS)	Under 44% of gross income
Employment stability	2+ years in same field preferred
Down payment source	Must be own funds, gift letter, or RRSP/FHSA
Payment history	No missed payments in last 2 years ideally
Collections	Any outstanding collections can disqualify

Score below the threshold? Options by situation

Your Score	Best Path
580–619	Spend 6–12 months paying down utilization and resolving any errors; most people can reach 640+ in this timeframe
550–579	B lender approval possible; rate premium is significant — weigh the cost vs. waiting
Under 550	Private lender or co-signer with strong credit; focus on credit rebuilding before buying
Collections outstanding	Settle collections first; some A lenders will not approve with any outstanding collections

How to improve your score before applying

Focus on the three highest-impact changes before a mortgage application:

1. Pay down revolving credit (most immediate impact)

Get all credit card balances below 30% of their limit. Below 10% is ideal. This alone can raise a score 20–60 points. The improvement shows within 1–2 statement cycles.

Card Balance	Credit Limit	Utilization	Score Impact
$3,000	$5,000	60%	Negative
$1,500	$5,000	30%	Neutral
$500	$5,000	10%	Positive

2. Resolve collections

Contact collection agencies to pay outstanding balances. Request a deletion letter (not just a “paid” notation) — some agencies will agree to delete the tradeline upon payment versus updating it to “paid collection” which still shows.

3. Do not apply for any new credit

Every hard inquiry in the 3–6 months before a mortgage application is visible to lenders even if it doesn’t dramatically affect your score. Multiple inquiries signal credit-seeking behaviour.