What Credit Score Do You Need for a Mortgage in Canada?
Your credit score is one of the key factors lenders consider when approving your mortgage application. But what score do you actually need? The answer depends on which lender you work with — and that’s where having a mortgage broker in your corner makes a real difference.
Credit Score Ranges in Canada
Canadian credit scores range from 300 to 900. Here’s how lenders generally categorize them:
- 800-900: Excellent
- 720-799: Very Good
- 650-719: Good
- 600-649: Fair
- Below 600: Challenging
Minimum Scores by Lender Type
A-Lenders (Big Banks and Major Lenders)
Most A-lenders require a minimum credit score of 620-680 for insured mortgages (less than 20% down). For conventional mortgages (20%+ down), they may require slightly higher scores.
B-Lenders (Alternative Lenders)
B-lenders specialize in borrowers who don’t fit traditional bank criteria. They may approve mortgages with credit scores in the 550-600 range, though rates will be higher than A-lenders.
Private Lenders
Private lenders focus primarily on the property value and equity rather than credit score. They can be an option for very low scores or unusual situations, typically as a short-term solution.
Beyond the Score: What Else Matters
Your credit score is important, but it’s not the only factor. Lenders also consider:
- Credit history length: Longer histories are viewed more favourably
- Payment history: Late payments, collections, and bankruptcies matter
- Credit utilization: How much of your available credit you’re using
- Types of credit: A mix of credit cards, car payments, and other accounts
- Recent inquiries: Too many credit applications in a short period can raise concerns
💡 Pro Tip
We pull your credit with your permission during our initial consultation. This allows us to see exactly what lenders will see and address any issues early. One credit pull for a mortgage pre-approval is normal and won’t significantly impact your score.
How to Improve Your Credit Score
If your score isn’t where you’d like it to be, here are concrete steps to improve it:
- Pay all bills on time: Payment history is the biggest factor. Set up automatic payments for minimums at least.
- Reduce credit card balances: Aim to use less than 30% of your available credit. Under 10% is even better.
- Don’t close old accounts: The length of your credit history matters. Keep old cards open, even if you don’t use them often.
- Limit new credit applications: Each application creates a hard inquiry. Space them out.
- Check for errors: Review your credit report for mistakes and dispute any inaccuracies.
Credit improvement takes time — typically 3-6 months to see meaningful changes. If you’re planning to buy in the next year, start now.
What If Your Score Isn’t Perfect?
Here’s the truth: we work with borrowers across the credit spectrum. While a higher score gets you better rates, a lower score doesn’t mean homeownership is out of reach. Our job is to find the right lender for your current situation.
If you’re rebuilding credit, we might start with a B-lender mortgage and refinance to an A-lender once your score improves. This gets you into a home now while you continue building your credit.
I have used Elevation Mortgage for both of my purchases. Both times they were thorough, explained all the little details, and I received the best rate for my needs. They are very responsive and you cannot go wrong with this company.
Elevation Mortgage
INDEPENDENT MORTGAGE BROKERS · LICENSED AB & BC
Julie & Andy Jeffery — independent mortgage brokers serving Calgary, Nelson BC,
and clients across Alberta and British Columbia.
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