What Credit Score Do You Need for a Mortgage in Canada? Your Essential 2025 Guide for Success
What Credit Score Do You Need for a Mortgage in Canada?
If you have been Googling what credit score you need to buy a home in Canada you are already ahead of the game. Your credit score plays a huge role in what mortgage products you qualify for, the interest rate you get, and even which lenders will work with you.
Here is the quick snapshot before we dive deeper: most Canadians get approved with a credit score of 680 or higher, but you can sometimes buy a home with a score as low as 600 (or under) depending on the lender, your down payment, and overall file strength.
Buying a home is exciting, but nothing kills the vibe faster than credit confusion. Let’s clear that up.
The Minimum Credit Score to Buy a Home in Canada
Different lenders have different rules, but here is the general breakdown what what credit score you need and why:
Big Banks and Prime Lenders
To qualify with a major bank or top-tier lender, a typical minimum is 680 for at least one borrower on the application. That does not automatically guarantee approval, but it opens the door to the best rate options and the broadest lender choice.
Insured Mortgages (Less than 20 percent down)
One of the first questions I hear from clients is: what credit score will allow me to get a CMHC-insured mortgage? If you are putting less than 20 percent down, your mortgage is insured by CMHC, Sagen, or Canada Guaranty. These insurers generally want:
- Minimum 600 credit score – no exceptions.
- 680 preferred for a smoother approval and stronger pricing options
If you are under 680, the strength of your income, debt ratios, and payment history matter even more.
B-Lenders and Alternative Lenders
Understanding what credit scores mean for alternative lenders is important too. Even if its in the 500s to low 600s, or you have bruised credit due to past late payments, bankruptcy, or consumer proposal, you might still qualify with a B-lender. These lenders are more flexible with credit score requirements, but the trade-off is:
- Higher interest rates
- Higher fees
- Larger down payment may be required
These products are often temporary stepping stones while rebuilding.
Private Lenders
Credit score is less important with private lenders since loans are based primarily on equity and property value, not credit. This route works best for short-term situations, not long-term financing.
How Your Credit Score Impacts Your Mortgage Rate
Two buyers can walk into the same bank, on the same day, and walk out with very different interest rates. Why? Risk. Lenders see higher credit scores as lower risk, and reward that with better pricing.
Example of how credit score affects mortgage outcomes:
| Credit Score | Typical Mortgage Outcome in Canada |
|---|---|
| 720+ | Excellent credit: best rates, widest lender options, smooth approval process. Exceptions likely granted |
| 680–719 | Good credit: strong rates and lender options. |
| 600–679 | Fair credit: limited access to prime lenders; must meet debt service ratios (GDS ≤35%, TDS ≤42%) for approval. Insured mortgage options possible but more restricted. |
| Under 600 | Poor credit: may need B-lender or private financing. Typically higher interest rates, minimum 20% down payment, and stricter terms. |
Notes you can add for context on the page:
- GDS = Gross Debt Service (housing costs ÷ gross income)
- TDS = Total Debt Service (all debt ÷ gross income)
- Insured mortgages = CMHC, Sagen, or Canada Guaranty products for down payments under 20%
Equifax Canada — How Credit Scores Work
Tips to Improve Your Credit Score Before Applying
If your score is not where you want it to be, here are simple moves that help:
- Pay bills on time each month
- Reduce credit card balances to under 30 percent of the limit
- Avoid opening new credit right before applying
- Keep older credit accounts open for history
- Check your credit report for errors and dispute anything incorrect
Even a 20-point jump can improve your approval odds and loan pricing.
Why Working With a Mortgage Broker Helps
Every lender has different rules around credit scores, and you do not need to navigate that alone. If you’re unsure what credit score is needed, a mortgage broker can review your file and give guidance. A mortgage broker matches you with the right lender based on your situation, goals, and file strength. Whether your score is excellent, good, or a work in progress, there are financing paths and strategies to help you move forward.
Buying a home is a big milestone. You do not need a perfect score, but you do need the right guidance.
Reach out today to see where you’re at!
