Your credit score is one of the first things a mortgage lender checks. It determines which lenders will work with you, what rate you’ll pay, and which mortgage products you can access. Here’s exactly where you need to be.
Credit score tiers for mortgage lending
| Credit Score | Rating | Lender Access | Rate Impact |
|---|---|---|---|
| 760+ | Excellent | All A-lenders; best rates available | Lowest rates, best terms |
| 720–759 | Very good | All A-lenders | Near-best rates |
| 680–719 | Good | Most A-lenders | Standard A-lender rates |
| 660–679 | Fair | Some A-lenders, all B-lenders | Higher end of A-lender rates or low B-lender rates |
| 600–659 | Below average | B-lenders only | B-lender rates (+1%–2.5%) |
| 550–599 | Poor | Limited B-lenders | Higher B-lender rates (+2%–3.5%) |
| 500–549 | Very poor | Few B-lenders, private lenders | Private rates (+4%–10%) |
| Below 500 | Critical | Private lenders only | Highest rates (+5%–11%) |
Minimum scores by lender type
A-lenders (banks, monolines, credit unions)
| Lender Category | Typical Minimum | Notes |
|---|---|---|
| Big 5 banks (TD, RBC, BMO, Scotia, CIBC) | 680 | Some may accept 660 with compensating factors |
| Monoline lenders (MCAP, First National, RMG) | 680 | Strict — automated underwriting |
| Credit unions | 650–680 | More flexible; manual underwriting allows exceptions |
| Virtual/online lenders | 680 | Similar to monolines |
B-lenders (alternative lenders)
| Lender | Typical Minimum | Specialty |
|---|---|---|
| Equitable Bank | 550 | Broad alternative programs |
| Home Trust | 550 | Self-employed, newcomers |
| ICICI Bank Canada | 600 | Newcomers, South Asian diaspora |
| Bridgewater Bank | 550 | Near-prime |
| B2B Bank | 550 | Broker channel alt-A |
| Haventree Bank | 500 | Bruised credit specialist |
Private lenders and MICs
| Lender Type | Minimum Score | Primary Criteria |
|---|---|---|
| MICs (Mortgage Investment Corps) | No minimum | Equity (LTV 65%–75%) |
| Private lending companies | No minimum | Equity + exit strategy |
| Individual private lenders | No minimum | Equity + property type |
Insured vs uninsured mortgage requirements
When you put less than 20% down, your mortgage must be insured by CMHC, Sagen, or Canada Guaranty. Insurance adds a credit score floor.
| Mortgage Type | Down Payment | Credit Score Minimum | Who Sets the Floor |
|---|---|---|---|
| Insured (default insurance) | 5%–19.99% | 600 (CMHC floor) / 680 (most lenders) | CMHC sets 600; most lenders add their own 680 minimum |
| Insurable (qualifies but 20%+ down) | 20%+ (under $1M, <25-yr am) | 680 | Lender policy |
| Uninsured | 20%+ (over $1M or 30-yr am) | 680 | Lender policy |
| B-lender uninsured | 20%+ | 500–650 | Lender policy |
The CMHC 600 vs lender 680 gap
CMHC technically insures mortgages for borrowers with scores as low as 600. However, most A-lenders set their own internal minimum at 680. The result:
| Score | CMHC Will Insure? | Most A-Lenders Will Approve? | Practical Outcome |
|---|---|---|---|
| 600–649 | Yes | No | Must find a lender willing to submit to CMHC at this score (rare) |
| 650–679 | Yes | Some (credit unions) | Limited options; may need broker to find willing lender |
| 680+ | Yes | Yes | Standard approval path |
What your score means for your mortgage options
Score 760+: full access, best pricing
| Benefit | Detail |
|---|---|
| Rate | Lowest advertised rates; strongest negotiating position |
| Lender choice | Every A-lender competes for your business |
| Approval speed | Fast — automated underwriting approves quickly |
| Product access | All products: fixed, variable, HELOC, readvanceable |
| Insurance | Insured or uninsured — full flexibility |
Score 680–759: standard approval
| Benefit | Detail |
|---|---|
| Rate | A-lender rates; may be 0.05%–0.15% above the absolute best |
| Lender choice | All A-lenders |
| Approval speed | Standard — may need manual review if near 680 |
| Product access | All standard products |
| Insurance | Full access |
Score 620–679: the grey zone
| Challenge | Detail |
|---|---|
| Rate | B-lender rates (1%–2.5% above A-lender) |
| Lender choice | B-lenders; some credit unions may help at 650+ |
| Fees | Lender fee of 0.50%–1.50% likely |
| LTV | Maximum 80% (cannot get insured mortgage from most lenders) |
| Strategy | If score is 650+, improving to 680 before applying is often worth the wait |
Score 550–619: alternative territory
| Challenge | Detail |
|---|---|
| Rate | B-lender rates (+2%–3.5%) |
| Lender choice | Limited B-lenders (Equitable, Home Trust, Haventree) |
| Fees | Lender fee 1%–2%, possible broker fee 0.50%–1.00% |
| LTV | Maximum 75%–80% |
| Strategy | Use 1–2 year term; rebuild credit; refinance to A-lender |
Score below 550: private lending
| Challenge | Detail |
|---|---|
| Rate | 8%–15%+ |
| Lender choice | Private lenders and MICs |
| Fees | Lender fee 2%–5%, broker fee 1%–3% |
| LTV | Maximum 65%–75% |
| Term | 1 year (renewable) |
| Strategy | Private → B-lender → A-lender over 2–3 years |
Co-borrower credit score rules
| Scenario | How Lenders Assess |
|---|---|
| Both applicants above 680 | Use the lower of the two scores |
| One applicant 720, other 650 | Score used: 650 — may push to B-lender |
| One applicant 780, other 580 | Score used: 580 — B-lender territory |
| Adding a guarantor/co-signer | Some lenders use the higher score; varies by institution |
Strategy: If one partner has a significantly lower score, it may be worth having the higher-scoring partner apply alone (if their income qualifies independently).
How many points make a difference?
| Current Score | Target Score | What Changes | Worth Waiting? |
|---|---|---|---|
| 670 | 680 | B-lender → A-lender access | Yes — saves 1%–2% on rate |
| 650 | 680 | Opens all A-lenders | Yes — significant savings |
| 620 | 680 | Opens A-lenders, removes fees | Yes — worth 3–6 months of effort |
| 580 | 620 | Better B-lender options | Maybe — incremental improvement |
| 550 | 620 | Moves from worst B-lenders to better ones | Yes — worth the effort |
| 720 | 760 | Marginal rate improvement | Probably not — minimal difference |
What lenders see beyond your score
| Factor | What Lenders Check | Impact |
|---|---|---|
| Payment history | Any late payments, collections, judgments | Single 90-day late payment can drop score 100+ points |
| Credit utilization | How much of available credit you’re using | Utilization over 30% hurts score; over 75% is a red flag |
| Credit age | Length of credit history | Longer history = more stable |
| Derogatory marks | Bankruptcy, consumer proposal, collections | Major negatives with specific timelines |
| Recent inquiries | New credit applications in last 6–12 months | Multiple inquiries suggest financial stress |
| Credit mix | Types of credit (revolving, installment, mortgage) | Diverse mix is positive |
Timelines for derogatory marks
| Event | Impact on Score | How Long It Stays | When You Can Get A-Lender Mortgage |
|---|---|---|---|
| Single late payment (30 days) | –60 to –110 points | 6 years | 12–24 months after (if score recovers) |
| Collection account | –50 to –100 points | 6 years from last activity | Once paid and score recovers to 680+ |
| Consumer proposal | –100 to –200 points | 3 years after completion | 2+ years after discharge (varies by lender) |
| Bankruptcy | –150 to –250 points | 6–7 years (first time) | 2+ years after discharge (B-lender at 1 year) |
| Foreclosure | –100 to –200 points | 6 years | 5–7 years for A-lender; B-lender sooner |