A mortgage application puts more weight on your credit file than almost any other credit decision: the score decides which lenders will consider you, and the report is read line by line during underwriting. This page covers the mortgage-specific side of raising a score, meaning what lenders look at, what can change in the months before you apply, and what to leave alone until closing. It is one of our guides to mortgage lenders and brokers.
How scores are built in general (the five factors and the 300 to 900 range) is explained in credit scores explained, and general score-raising tactics are in how to improve your credit score fast.
Which score a mortgage lender looks at
- One bureau or both. Canada has two credit bureaus, Equifax and TransUnion, and their scores for the same person can differ because not every creditor reports to both. Lenders choose which bureau they pull, and some pull both; ask the lender or broker which one it uses, then check that report first.
- Two applicants. On a joint application each borrower’s file is reviewed. For an insured mortgage, the floor applies to the stronger file: At least one borrower or guarantor has a credit score of 600 or more. Lenders can set their own, higher minimums, and how a lender weighs two different scores is its own policy.
- The score floor and the rest. For a CMHC-insured purchase, at least one borrower or guarantor needs a credit score of 600 or more; CMHC may use other ways to judge creditworthiness for a borrower with no credit history. What different lender types want above that floor is covered in the credit score needed for a mortgage, and how the score changes the rate you’re offered in how your credit score affects your mortgage rate.
- The report, not only the number. Underwriters read payment ratings, collections, public records such as a consumer proposal, and recent inquiries. Each line is explained in how to read your credit report.
Three to six months before you apply
| What to do | Why it matters for the mortgage |
|---|---|
| Get both credit reports | You see what any lender might see, with time to fix it. Ordering your own report is a soft inquiry and doesn’t affect your score. |
| Dispute errors | Accounts that aren’t yours, wrong balances or paid debts shown as unpaid can be disputed with each bureau, and investigations take weeks. |
| Bring card balances down | Balances are reported from your statements, so paying before the statement date lowers what lenders see. Lower balances also lower the minimum payment counted in your TDS ratio. See credit utilization. |
| Deal with collections | An unpaid collection is a common reason for a decline or a condition on approval; paid collections still show for years but read better to an underwriter. |
| Keep every payment on time | A new late payment right before an application weighs more heavily than an old one. Automatic minimum payments prevent accidental misses. |
| Build a thin file | A young borrower or a newcomer to Canada with little history can add a secured card or a small installment loan, but these need months of on-time payments to count. |
A credit card balance affects the application twice: through the score, and through the monthly payment lenders add to your debt ratios. That second effect is worked through in how credit card debt affects mortgage approval.
How long negative items stay
Waiting is the only fix for some items, so it helps to know when they drop off. According to the Financial Consumer Agency of Canada:
| Item | Equifax | TransUnion |
|---|---|---|
| Hard inquiries | 3 years | 6 years |
| Late payments | Up to 6 years | Up to 6 years |
| Consumer proposal | 3 years after it is paid off (or 6 years after signing, whichever comes first) | Same |
| First bankruptcy | 6 years after discharge | 6 years after discharge in most provinces |
Older items count for less than recent ones even before they drop off. Getting approved after an insolvency is covered in a mortgage after a consumer proposal and a mortgage after bankruptcy.
Around the credit check
- Shop rates without a pile of applications. Rate quotes and online estimates usually don’t need a credit check; a pre-approval or a full application usually does. A broker can send one application to the lender most likely to approve it, which is one reason borrowers with a borderline score often use one (see mortgage broker vs bank vs online lender). Canadian bureaus say only that several inquiries for the same kind of credit in a short period may be treated as one, without a fixed window.
- Get pre-approved once your file is ready, not before: a mortgage pre-approval reflects the score on the day of the check.
- The lender may check again before closing. Lenders can re-pull credit or confirm debts before the funds are advanced, so a change between approval and closing can still matter (see the underwriting process).
What can hurt the application before closing
| Step that can hurt the application | Why |
|---|---|
| Opening new credit cards or loans | Adds a hard inquiry and, for a loan, a monthly payment that raises your TDS |
| Closing old cards | Cuts your available credit, which raises your utilization |
| Large purchases on credit (a car, furniture) | Raises reported balances and payments right when the lender rechecks |
| Co-signing for someone else | The co-signed debt can count against your own ratios |
| Missing any payment | A new late payment is the most damaging item a lender can see |
| Changing jobs | Doesn’t touch your score, but can reopen income verification |
A readiness checklist
- Both reports reviewed and any errors disputed.
- No late payments in the last 12 months, and every active account current.
- Card balances low on the statements the lender will see.
- Collections paid or settled, with the letters to prove it.
- No new credit applications planned before closing.
- Your down payment in your account with 90 days of history: see what lenders look for in your bank statements.
If an application has already been declined because of credit, what to do when your mortgage is denied covers the next steps, and mortgage lenders for bad credit lists lenders by credit band.
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and September 29, 2026. How we check facts.
- CMHC: CMHC Purchase
- Financial Consumer Agency of Canada: How long information stays on your credit report