What is the minimum credit score to buy a house in Canada?

The absolute minimum is around 500–550 for a B-lender or private mortgage, but you will pay significantly higher rates. For conventional A-lender mortgages with the best rates, you generally need a credit score of 680+. CMHC-insured mortgages (less than 20% down) require a minimum score of 600. Most A-lenders prefer 680+ for their best rate offerings.

Does my credit score affect my mortgage rate in Canada?

Yes, significantly. A score of 760+ typically qualifies you for the best available rates. A score of 680–759 gets you A-lender rates with a small premium. A score of 600–679 limits you to insured mortgages with higher rates. Below 600, you are likely looking at B-lenders (1–3% higher rates) or private lenders (6–12%+ rates). On a $400,000 mortgage, the difference between 5% and 7% is roughly $450/month.

How long does it take to improve my credit score for a mortgage?

Most borrowers can improve their score by 50–100 points in 3–6 months by paying down credit card balances below 30% utilization, making all payments on time, and correcting errors on their credit report. More significant recovery — from a missed payment, collections, or a consumer proposal — takes 1–3 years of consistent positive credit behaviour.

What Credit Score Do I Need to Buy a House in Canada?

Your credit score is one of the most important factors in getting a mortgage in Canada. It determines not just whether you are approved but which lenders you can access and what rate you will pay. Here is exactly what scores you need and what to do if you are not there yet.

Pair this with the credit-scores hub, then map score improvements to your mortgage pre-approval plan and your first-time buyer path so your application timing matches your strongest profile.

Credit score ranges and mortgage options

Credit Score	Rating	Mortgage Options	Rate Impact
760+	Excellent	All A-lenders, best rates available, maximum negotiating power	Best rates — lowest available
720–759	Very Good	All A-lenders, excellent rates, minor premium possible	+0.00–0.10% above best rate
680–719	Good	Most A-lenders, standard rates	+0.05–0.20% above best rate
650–679	Fair	Some A-lenders, insured mortgages (5%+ down), higher rates	+0.20–0.50% above best rate
600–649	Below Average	Limited A-lenders, CMHC minimum for insured, tight approval	+0.50–1.00% or B-lender territory
550–599	Poor	B-lenders only — higher rates and fees	+1.50–3.00% above A-lender rates
Below 550	Very Poor	Private lenders only — highest rates, short terms	+4.00–8.00% above A-lender rates

What the rate difference actually costs you

On a $400,000 mortgage over 25 years:

Credit Score Range	Approximate Rate	Monthly Payment	Total Interest (25 years)	Extra Cost vs Best Rate
760+ (best rate)	4.50%	$2,200	$260,000	—
680–720	4.70%	$2,245	$273,000	+$13,000
620–660	5.20%	$2,360	$308,000	+$48,000
550–600 (B-lender)	6.50%	$2,680	$404,000	+$144,000
Below 550 (private)	9.00%+	$3,300+	$590,000+	+$330,000+

A credit score improvement from 620 to 720 can save over $48,000 in interest on a single mortgage. Improving your score before applying is one of the highest-ROI financial moves you can make.

Minimum scores by lender type

A-Lenders (Big Five banks, credit unions, monolines)

Lender Category	Typical Minimum Score	Notes
Big Five banks (TD, RBC, BMO, Scotia, CIBC)	680 (some flex to 650 for insured)	Strictest documentation requirements
Major credit unions	650–680	May be more flexible on credit history stories
Monoline lenders (MCAP, First National, RMG)	680	Often best rates but strict qualification
Online lenders	680	Streamlined process, competitive rates

B-Lenders

Lender Category	Typical Minimum Score	Rate Premium	Notes
B-lenders (Equitable Bank, Home Trust, ICICI)	500–600	+1.00–3.00%	Accept bruised credit, self-employed
Alt-A lenders	550–620	+1.50–2.50%	Between A and B — flexible on documentation

Private Lenders

Lender Category	Typical Minimum Score	Rate Range	Notes
Private lenders (MICs, individual investors)	No minimum (equity-based)	7–15%+	1-year terms, fees of 1–3%

CMHC insurance and credit scores

If your down payment is less than 20%, your mortgage must be insured by CMHC, Sagen, or Canada Guaranty. The insurers have their own credit score requirements:

Mortgage Insurer	Minimum Credit Score	Additional Requirements
CMHC	600 (at least one borrower)	Both borrowers must have established credit. No active collections.
Sagen	600	Similar to CMHC. Income verification required.
Canada Guaranty	600	May consider alternative credit for newcomers.

Key point: Even if your bank says they approve at 650, the insurer can decline at 600. If the insurer declines, the insured mortgage does not happen — regardless of what the bank says.

What lenders actually look at beyond the score

Your credit score is the headline number, but lenders dig deeper:

Credit Factor	What Lenders Want to See	Red Flags
Payment history	On-time payments for 2+ years	Any missed payment in last 12 months
Credit utilization	Below 30% of limits	Cards maxed out or near limit
Credit history length	3+ years of established credit	Less than 2 years of credit history
Credit mix	2+ trade lines (credit card + installment loan)	Only 1 credit product
Recent inquiries	Minimal in last 6 months	5+ inquiries (suggests desperation for credit)
Collections or judgments	None	Any active collection, even small amounts
Bankruptcy or proposal	Discharged 2+ years ago with rebuilt credit	Active or recently discharged

How to check your credit score before applying

Method	Cost	Score Type
Equifax (equifax.ca)	Free (basic report) or $19.95/month (score + monitoring)	Equifax Risk Score
TransUnion (transunion.ca)	Free (basic report) or $24.95/month	TransUnion CreditVision
Borrowell (borrowell.com)	Free	Equifax Risk Score (updated weekly)
Credit Karma (creditkarma.ca)	Free	TransUnion CreditVision (updated weekly)
Your bank’s app	Free (many banks now show it)	Varies — usually TransUnion

Important: Check both Equifax and TransUnion. Lenders may pull either one, and the scores can differ by 20–50+ points. Know your lower score — that is the one that matters for qualification.

How to improve your credit score before applying

If your utilization is high, use a short payoff plan from the debt strategies hub first, then revisit this guide after two billing cycles.

Quick wins (1–3 months)

Action	Expected Impact	Timeline
Pay credit card balances below 30% of limit	+20–50 points	1–2 statement cycles
Pay all balances below 10% for maximum effect	+30–60 points	1–2 statement cycles
Dispute and correct errors on your credit report	+20–100 points (if errors are significant)	30–90 days
Become an authorized user on a family member’s old, low-utilization card	+10–30 points	1–2 months
Stop applying for new credit	Prevents further hard inquiries	Immediate

Medium-term improvements (3–12 months)

Action	Expected Impact	Timeline
Make every payment on time for 6+ months	+30–60 points	6 months
Pay off collections accounts (negotiate “pay for delete” if possible)	+50–100 points	3–6 months after payment
Reduce overall debt-to-income ratio	Improves both score and mortgage qualification	3–12 months
Open a secured credit card if you have no credit history	Establishes credit profile	6–12 months of usage

What NOT to do before a mortgage application

Action to Avoid	Why
Close old credit cards	Reduces average account age and available credit — both hurt your score
Open multiple new accounts	Hard inquiries + new accounts lower your score
Co-sign for anyone	Adds their debt to your profile
Pay off old collections without negotiating removal	Paid collections still show on your report for 6 years
Take on new debt (car loan, furniture financing)	Increases TDS ratio and reduces mortgage qualification

Credit score requirements for special situations

Situation	Score Needed	Notes
Newcomer to Canada (less than 2 years)	May qualify with no Canadian credit score	Some lenders accept international credit history, a large down payment (10–20%), or an employment letter. CMHC has the New to Canada program.
Self-employed	680+ for A-lenders, 600+ for B-lenders	Self-employed borrowers face extra scrutiny on income — a strong credit score helps offset the risk.
Previous bankruptcy	650+ (2 years post-discharge)	Need 2 re-established trade lines, 2 years of clean credit history.
Previous consumer proposal	620+ (3 years post-completion for some lenders)	Some B-lenders will consider immediately after completion. A-lenders want 2–3 years.
Co-borrower with lower score	Lenders use the lower score for qualification	If one borrower has 750 and the other has 600, the 600 is what matters. Some lenders will let the higher-score borrower qualify alone if their income supports it.

Action plan by credit score range

Your Score	Recommended Action	Timeline to Mortgage-Ready
720+	Apply now. Focus on rate shopping, not credit improvement.	Ready now
680–719	Apply now but optimize utilization for best rate.	Ready now (optimize 1–2 months for better rate)
640–679	Pay down balances, fix errors, wait 2–3 months, then apply with a broker.	2–3 months
600–639	Aggressive debt paydown, establish positive payment history, may need insured only.	3–6 months
550–599	Focus on debt repayment and payment consistency. Consider B-lender in 3–6 months or A-lender in 12 months.	6–12 months
Below 550	Rebuild systematically. Secured credit card, consistent payments, debt repayment. Consider private lender only as a short-term bridge.	12–24 months