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What Credit Score Do You Need for a Mortgage in Canada?
Quick Answer
Most Canadian lenders require a minimum of 600-650 for approval. However, a score of 680 or higher will qualify you for better rates and terms.
Big 5 banks (TD, RBC, BMO, Scotiabank, CIBC) typically require a minimum score of 650-680. unions may approve mortgages with scores as low as 600. Alternative lenders (B lenders) work with scores from 500-600, but charge higher interest rates. Private lenders focus less on credit scores but charge the highest rates.
Your directly impacts the you'll receive. A score of 760+ qualifies you for the best available rates. Scores between 680-759 typically receive competitive rates. Scores between 600-679 may face rates 0.5-1% higher than prime. Below 600, you'll likely need alternative lenders with rates 2-4% above prime.
Start by checking your for errors at Equifax or TransUnion. Pay down card balances to below 30% of your limit. Avoid opening new credit accounts in the 6 months before applying. Make all payments on time— is 35% of your score. Keep old accounts open to maintain length.
is just one factor. Lenders also evaluate your (should be below 44%), employment stability (2+ years preferred), amount (minimum 5% for homes under $500K), and the property itself. A strong application in other areas can sometimes offset a lower credit score.
Frequently Asked Questions
Yes, but you'll need to work with alternative (B) lenders or private lenders who accept lower scores. Expect higher interest rates and may need a larger .
You can see improvements in 30-60 days by paying down balances and correcting errors. Significant improvements typically take 3-6 months of consistent positive behaviour.
No. Checking your own is a '' and doesn't affect your score. Only 'hard inquiries' from lenders when you apply for can temporarily lower your score.