What credit score do you need for a mortgage in Canada?

In Canada, most traditional mortgage lenders look for a credit score of roughly 680 and up to offer their best terms, and mortgage insurers generally require a minimum of around 600 for an insured mortgage. These thresholds are guidelines only: each lender sets its own criteria, and your score is just one factor alongside your income, your debt load, and your down payment.

Typical thresholds by type of lender

There is no “official” score required to get a mortgage, but a few benchmarks come up often:

• Around 680 and up: most banks and credit unions view this level favourably. This is generally the range where the best rates become accessible.
• Around 600 to 680: approval is still possible with many traditional lenders, especially if the rest of your file is strong, but the terms may be less favourable.
• Below around 600: traditional lenders often decline. Alternative (“B”) or private lenders may approve you, in exchange for a higher rate and often a larger down payment.

An important reminder: these numbers are reference points, not guarantees. Actual criteria vary from lender to lender and change over time.

Insured vs uninsured mortgages: what it means for your score

In Canada, a down payment below 20% makes mortgage loan insurance mandatory (through CMHC or a private insurer). This distinction shapes the score requirements:

• Insured mortgage (down payment under 20%): insurers generally require a minimum score of around 600 for at least one borrower. Without this insurance, the lender cannot approve the loan with a small down payment.
• Uninsured mortgage (down payment of 20% or more): the lender carries the risk alone and sets its own criteria. Some are more flexible on the score when the down payment is large; others remain strict.

In both cases, you also need to pass the stress test: the lender checks that you could sustain your payments at a rate higher than the one in your contract.

Your score never acts alone: down payment, income, and debt

A high score guarantees nothing, and an average score does not doom your project. Lenders assess the whole file:

• Down payment: the larger it is, the less risk the lender takes on. A substantial down payment can partly offset a weaker score.
• Income and its stability: a stable job and sufficient income relative to the property’s price carry a lot of weight in the decision.
• Debt-service ratios: lenders calculate what share of your income goes to housing and to all your debts. High balances on your cards or a well-used line of credit can block a file even with a good score.

That is why two people with the same score can receive very different answers.

How to improve your score before applying

If your score sits below the target thresholds, a few months of preparation can make a real difference:

1. Pay all your accounts on time. Payment history is the single most important factor in your score.
2. Reduce your balances. Aim to use less than roughly 30% of your available credit limits.
3. Check your Equifax and TransUnion reports. Errors are more common than you might think; have them corrected before the lender sees them.
4. Avoid new credit applications in the months leading up to your mortgage application.
5. Do not close your oldest accounts, because the age of your accounts works in your favour.

For a detailed action plan, see our credit score guide.

Next steps

Your credit score opens doors, but comparison is what saves you money. Before you sign, get proposals from several lenders or go through a mortgage broker: rates, fees, and terms vary meaningfully from one institution to another, and comparing the APR and conditions of each offer remains the best way to pay a fair price. If your score needs a boost, give yourself a few months of preparation — the effort often translates into better terms for the entire life of the loan.