What Is a Good Credit Score for a Mortgage in Canada? A 2026 Guide
When you start thinking about buying a home or refinancing, one of the first questions that comes up is what kind of credit score you actually need. It’s a fair question, and the answer can feel frustrating because lenders rarely give a single clear number. The truth is that what counts as a good credit score for a mortgage in Canada depends on the type of mortgage you want, the lender you approach, and the rest of your financial picture.
At LendToday, we work with Canadians across every credit range, from clients with pristine files who want the lowest possible rate to homeowners who have hit a rough patch and need creative solutions. This guide breaks down what counts as a good credit score for a mortgage in Canada, what your options look like at each level, and what you can do to strengthen your position before you apply.
Understanding Credit Scores in Canada
In Canada, your credit score is a three digit number that falls somewhere between 300 and 900. The two main credit bureaus, Equifax and TransUnion, each calculate their own version of your score using the financial information reported by your creditors. The two scores are usually similar but not identical, so it’s normal to see a small gap between them.
Several factors feed into how your score is calculated:
- Payment history, which carries the heaviest weight
- How much of your available credit you are using (your utilization ratio)
- The length of your credit history
- The mix of credit types you carry, such as credit cards, lines of credit, and loans
- Recent applications and newly opened accounts
Lenders look at all of these pieces together, not just the final number. A 720 score with one missed payment two years ago tells a very different story than a 720 score with a recent collection on file.
What Credit Score Do You Need to Qualify for a Mortgage in Canada?
Most prime lenders in Canada, including the big banks, look for a credit score of at least 680. Some will go down to 660 if the rest of your application is strong. Insured mortgages through CMHC, Sagen, or Canada Guaranty typically require a minimum score of 600 on at least one applicant, although a score above 680 makes the process far smoother.
That said, the answer changes depending on who you ask. A traditional A lender has very different expectations than a B lender or a private lender. This is where working with a brokerage that connects to multiple lender types becomes valuable, because the right home for your application depends on more than just your score.
Credit Score Ranges and What They Mean for Your Mortgage
Here is a practical look at how Canadian lenders generally view different credit score ranges.
760 to 900: Excellent
You are in the top tier. Lenders compete for your business, and you should qualify for the best advertised rates, assuming the rest of your application checks out. Insurers, prime banks, monoline lenders, and credit unions are all on the table.
725 to 759: Very Good
You will still qualify with most A lenders and can expect competitive rates. A strong income profile and clean payment history will usually carry you through prime channels without much friction.
660 to 724: Good
This is the range where most Canadian mortgages get approved. You meet the threshold for prime lenders, although those at the lower end of this band may face slightly more scrutiny on income, debt ratios, or down payment.
600 to 659: Fair
You are below the comfort zone for most banks, but options are still very much available. You may end up working with a B lender or alternative lender, where rates are higher but approval is realistic. A strong down payment, stable income, or co applicant can help bridge the gap.
300 to 599: Poor
A score in this range usually rules out prime lenders, but it does not rule out a mortgage. Many of our clients at LendToday come to us in exactly this situation. Alternative lenders and private lenders focus more heavily on the equity in the property and your ability to service the loan, rather than on the score alone. These solutions are often short term, designed to bridge you back to prime lending once your credit recovers.
Why Lenders Care About Your Credit Score
Your credit score is essentially a snapshot of how you have managed borrowed money in the past. Lenders use it for three main reasons:
- To assess the risk that you may miss payments or default on the loan
- To set the interest rate they offer, since higher risk usually means a higher rate
- To meet the requirements of mortgage default insurance when your down payment is under 20 percent
A higher score generally means lower borrowing costs over the life of your mortgage. Even a small difference in rate can translate into thousands of dollars over a five year term, which is why it pays to understand where you stand before you apply.
What If Your Credit Score Is Below Average?
A less than perfect credit score is not the end of your mortgage story. Canada has a healthy alternative lending market built specifically for borrowers who fall outside prime bank guidelines. Here are the most common paths forward.
B lenders and alternative lenders. These regulated lenders take a broader view of your application. They look at the full picture, including income stability, down payment, property type, and overall debt load. Rates are typically a bit higher than prime, but the gap has narrowed in recent years.
Private lenders. When timing matters or credit issues are more serious, private lenders can offer fast, flexible approvals based primarily on the equity in your home. These are usually one or two year solutions, intended to give you time to rebuild and return to prime lending.
Equity based approvals. If you already own a home with substantial equity, lenders can often work around credit challenges by relying on the value of the property as security. This is one of the most common solutions we arrange for homeowners who need to consolidate debt, fund repairs, or get through a temporary income disruption.
A planned bridge back to prime. A good mortgage broker does not just place you in an alternative product and walk away. The goal is to set up a clear path back to a prime mortgage once your credit and finances recover, often within 12 to 24 months.
How to Improve Your Credit Score Before Applying for a Mortgage
If your application is not urgent, even a few months of intentional effort can lift your score meaningfully. Here is what tends to move the needle most:
Pay every bill on time. Payment history is the largest single factor in your score. Setting up automatic minimum payments protects you against accidental misses.
Keep your credit utilization low. Try to keep balances below 30 percent of your available credit limit on each card and line of credit. Below 10 percent is even better.
Avoid closing old credit accounts. The length of your credit history matters. An old, unused card with no annual fee is often worth keeping open.
Limit new credit applications. Each hard inquiry can ding your score slightly. In the six months before applying for a mortgage, try to avoid opening new accounts unless absolutely necessary.
Check your credit reports for errors. You can request free copies from Equifax and TransUnion. Mistakes do happen, and disputing them can lead to quick gains.
Be patient. Credit improves gradually. Most clients see meaningful change within three to six months of consistent effort.
Frequently Asked Questions
What is the minimum credit score for a mortgage in Canada?
There is no single legal minimum, but most prime lenders look for at least 680, while insured mortgages typically require 600 or higher on at least one applicant. Alternative and private lenders can work with scores below 600 by focusing on equity, income, and the property itself.
Can I get a mortgage with a credit score under 600 in Canada?
Yes. While most banks will decline applications in that range, B lenders, alternative lenders, and private lenders regularly approve mortgages for borrowers with scores under 600. These solutions usually come with higher rates and shorter terms, but they can be an effective bridge while you rebuild your credit.
Does my credit score affect my mortgage interest rate?
It does. A higher credit score generally qualifies you for lower rates because lenders view you as a lower risk borrower. Even a difference of 20 or 30 points can change the rate tier you fall into, which is why improving your score before you apply can pay off significantly over the life of your mortgage.
How long does it take to improve a credit score before applying for a mortgage?
Most borrowers see noticeable improvement within three to six months of consistent on time payments and lower credit utilization. More serious issues like collections or recent missed payments can take 12 months or more to recover from, though some lenders will look past them once you have rebuilt a steady history.
Will applying for a mortgage hurt my credit score?
A mortgage application creates a hard inquiry, which can lower your score by a few points temporarily. However, multiple mortgage related inquiries within a short window, usually 14 to 45 days, are typically treated as a single inquiry by the credit bureaus, so shopping around through a broker does not stack penalties on your file.
Do both spouses’ credit scores matter for a mortgage in Canada?
When two people apply together, lenders consider both credit scores, and many lenders qualify the file based on the lower of the two. If one spouse has significantly stronger credit, it can sometimes make sense to apply with only that person, depending on income and debt ratios.
Is a 650 credit score good enough for a mortgage in Canada?
A 650 score sits in the fair range. Some A lenders may still approve your application with strong supporting factors, but you may also be steered toward a B lender. A mortgage broker can quickly tell you whether your full file qualifies for prime or whether an alternative solution is the better fit.
How LendToday Helps Borrowers at Every Credit Level
At LendToday, we have spent more than three decades helping Canadians find mortgage solutions that fit their real life circumstances, not just textbook scenarios. Led by David Cumberbatch and David Jeffrey, our team works with a network of more than 50 lenders across Ontario, ranging from major banks to specialized alternative and private lenders.
If your credit is excellent, we can shop the market to find the most competitive rate and terms. If your credit has taken a hit, we can build a strategy that gets you approved today and puts you on a path back to prime lending tomorrow. Either way, your application is reviewed by people who understand that a credit score is only one part of who you are as a borrower.
Ready to find out where you stand and what’s possible? Reach out for a free, no obligation consultation, and we’ll walk you through your options based on your actual numbers.
