There is no single "good" credit score for buying a house in Canada — the threshold depends on whether you are going to a Big Six A-lender, a B-lender, or applying for a CMHC-insured high-ratio mortgage. As a working baseline: a score of 680+ unlocks the best rates, 600–680 will likely qualify with most lenders at slightly higher rates, and below 600 typically pushes you to alternative lending. Here is the lender-by-lender reality.
In this guide, we cross-reference How to Buy a House in Ontario, and Sales Tax When Buying — click through whenever you want to go deeper on a related concept.
How Credit Scores Work in Canada
The two major Canadian credit bureaus are Equifax Canada and TransUnion Canada. Both use a 300–900 scale. Most mortgage lenders pull from Equifax. Scores are influenced by payment history, credit utilization, length of credit, recent inquiries, and credit mix.
Lender Score Thresholds
| Lender Type | Typical Minimum Score | Notes |
|---|---|---|
| Big Six A-Lender (best rates) | 680+ | Higher scores get better rates; 720+ is preferred for top-tier pricing. |
| A-Lender (qualifying) | 640–680 | May qualify but pricing slightly worse; tighter scrutiny on debt. |
| B-Lender (alternative) | 550–640 | Higher rates (50–150 bps over prime), more flexible underwriting. |
| Private mortgage | No minimum | Highest rates and fees; short term, exit strategy required. |
| CMHC-insured high-ratio | 600+ (one borrower) | Required when down payment is less than 20%. |
Down Payment Affects the Picture
If your down payment is less than 20% of the purchase price, the mortgage is high-ratio and must be insured (CMHC, Sagen, or Canada Guaranty). The insurer's score requirements layer on top of the lender's.
Beyond Score — What Lenders Actually Look At
- Total Debt Service (TDS) ratio — usually capped at 44%.
- Gross Debt Service (GDS) ratio — usually capped at 39%.
- Income stability and employment type.
- Down payment source (gifted vs saved).
- Stress test — qualify at contract rate + 2% or BoC qualifying rate, whichever is higher.
How to Improve Your Score Before Applying
- Pay every bill on time — payment history is the largest factor.
- Keep credit card utilization below 30% of limit.
- Avoid new credit applications in the 6 months before applying.
- Don't close old accounts — length of history helps.
- Pull both Equifax and TransUnion reports and dispute errors.
Frequently Asked Questions
What credit score do I need for a CMHC-insured mortgage?+
CMHC requires at least one borrower to have a credit score of 600 or higher. Most insured lenders will look for 680+ for the best rate options.
Can I get a mortgage with a 600 credit score?+
Yes — usually through a B-lender or with a larger down payment. Expect a higher rate than prime A-lender pricing. A mortgage broker can match you to the right product.
How long does it take to improve a credit score?+
Meaningful improvement (50+ points) typically takes 6–12 months of consistent on-time payments, low utilization, and no new credit. Errors disputed and corrected can move scores faster.
Does checking my own credit hurt my score?+
No. Pulling your own report through Equifax or TransUnion is a soft inquiry and does not affect your score. Lender pulls during a mortgage application are hard inquiries and may cause a small temporary dip.
Related Articles
Work With a Top Toronto Real Estate Agent
Pre-approval is the smartest first step in any Toronto purchase. Aldo will connect you with a trusted GTA mortgage broker and walk you through the rest of the buying journey.