By Hami Tahm · Published October 2026 · Updated October 2026 · 9 min read
Credit Score Needed to Buy a House in Canada
What credit score do you need to buy a house in Canada?
For an insured mortgage (less than 20% down), CMHC requires at least one borrower or guarantor to have a credit score of 600 or higher — the only published minimum in Canada. Banks don't publish a cut-off, but about 680 is commonly cited as what the major banks look for, particularly on uninsured mortgages with 20% or more down. Alternative (B) lenders consider lower scores at higher rates, and private lenders lend mainly on your home equity rather than your score. Canadian credit scores run from 300 to 900.
Key Takeaways
- CMHC's published minimum is 600 for at least one borrower or guarantor on an insured mortgage.
- Banks set their own credit policy and don't publish a minimum; about 680 is the commonly cited benchmark for prime pricing.
- A good score is necessary but not sufficient: you also have to pass GDS 39% / TDS 44% at the stress-test rate (contract + 2% or 5.25%, whichever is higher).
- You can check your Equifax and TransUnion credit reports for free, and checking your own report never lowers your score.
- A pre-approval typically holds a rate for 60 to 130 days and is not a guarantee of final approval.
This page is for informational purposes only and does not constitute financial advice. Lender credit policies change and vary by lender — confirm your own situation with a lender or licensed mortgage broker.
Credit Score Needed by Mortgage Type
The score you need depends mostly on which kind of mortgage you're applying for. The only number published by a public body is CMHC's: on its homeowner mortgage loan insurance, "at least one borrower (or guarantor) must have a minimum credit score of 600." Canada's two private mortgage insurers, Sagen and Canada Guaranty, set their own underwriting criteria. Everything above that floor is lender policy — banks, credit unions and alternative lenders each decide their own threshold and don't publish it.
| Mortgage type | Credit score needed | What it means for you |
|---|---|---|
| Insured (CMHC) — less than 20% down | 600+ for at least one borrower or guarantor | Published CMHC minimum. The lender's own credit policy still applies on top of it. |
| Conventional (bank / prime lender) — 20%+ down | No published minimum; about 680+ commonly cited | Each lender sets its own threshold. Stronger scores generally get better pricing. |
| Alternative / B-lender | Lower scores considered; set by each lender | Higher rates and may charge a lender fee; often used as a temporary step back to a prime lender. |
| Private lender | Credit score is secondary | Lends mainly on the property's equity and your exit plan; highest rates and fees. |
Meeting the insurer's floor doesn't oblige a lender to approve you. A file with a 610 score can be eligible for CMHC insurance and still be declined by a bank whose internal policy is higher. That's where a broker who works with both prime and alternative lenders earns their keep — and if you end up outside both, our guide to private mortgage lenders in Canada covers the rates, fees and exit plan you'd be signing up for.
Canadian Credit Score Ranges
Canada has two main credit bureaus, Equifax and TransUnion. According to the Financial Consumer Agency of Canada (FCAC), scores usually range from 300 to 900, and a higher score is better. Your two bureau scores can differ, and the score you see in an app may differ from the one a lender pulls, because lenders weight information differently.
| Equifax Canada score | How Equifax describes it |
|---|---|
| 760 and up | Excellent |
| 725 – 759 | Very good |
| 660 – 724 | Good |
| Below 660 | May be less likely to qualify for better loan terms |
| Below 560 (generally) | Poor |
What Else Lenders Look At Besides Your Credit Score
Your score gets you in the door; your income and debts decide how much you can borrow. Canadian lenders use two debt service ratios:
- Gross Debt Service (GDS) ≤ 39% — mortgage principal and interest, property tax, heating and 50% of any condo fees, divided by gross household income.
- Total Debt Service (TDS) ≤ 44% — everything in GDS plus your car loans, credit cards, lines of credit and other debt payments.
Both ratios are calculated at the stress-test qualifying rate, not your actual rate: the greater of your contract rate plus 2% or 5.25%. OSFI sets that rule for uninsured mortgages at federally regulated lenders, and CMHC applies the same qualifying rate to insured mortgages. Lenders also verify your down payment (and where it came from), your employment history, and the property itself. Run your own numbers in the mortgage stress test calculator or see the maximum you'd likely qualify for with the mortgage qualifier calculator. For the full checklist, read how to qualify for a mortgage in Canada.
Why a high score can still be declined
A 780 score with a TDS ratio over 44% at the qualifying rate will usually still be declined at a prime lender. Paying down a car loan or credit card before you apply can improve both your score and your TDS at the same time. The mortgage affordability calculator shows how much each monthly debt payment reduces the home price you can afford.
Mortgage Pre-Approval: How Long It Takes and What It Means
A pre-approval is a lender's conditional estimate of how much it would lend you and at what rate. To issue one, the lender reviews your income, debts and assets and will likely run a credit check. There is no official timeline, but many lenders and brokers turn a pre-approval around in a day or a few business days once your documents are in; self-employed income, thin credit files or unusual properties take longer.
Two details matter. First, FCAC notes a pre-approval can hold your rate for 60 to 130 days, depending on the lender. Second, it is not a guarantee: the lender still has to approve the specific property and re-confirm your file before final approval, and FCAC says a lender can refuse you even after pre-approval. Avoid opening new credit or taking on new debt between pre-approval and closing.
Shopping around doesn't have to hurt your score: FCAC says that quotes from different lenders for a mortgage within a 2-week period are treated by the credit bureaus as one inquiry.
How to Check Your Credit Score for Free in Canada
- Credit report: both Equifax and TransUnion give you your credit report free online, and either bureau will mail you a free copy on request.
- Credit score: per FCAC, Equifax provides your score free in all provinces and territories; TransUnion's is free if you live in Quebec or Ontario. Many banks and credit card issuers also show a score in their apps.
- No impact: checking your own report or score is a soft inquiry and doesn't affect your credit score.
Check both reports a few months before you apply, so there's time to dispute any errors — an account that isn't yours or a paid debt still showing as owing can drag your score down.
How to Improve Your Credit Score Before Applying
These are FCAC's own recommendations, in rough order of impact:
- Pay on time, every time. Payment history is the most important part of your score. If you can't pay a balance in full, make at least the minimum payment.
- Use less than 30% of your total credit limit. Owing $4,500 on a $5,000 card looks riskier to lenders than owing $1,000.
- Limit new credit applications. Each hard inquiry can lower your score slightly; hold off on new cards or loans in the months before a mortgage application.
- Keep old accounts open. An old card with a zero balance helps maintain the length of your credit history.
- Fix errors. Dispute inaccurate items directly with Equifax and TransUnion.
Applying With a Co-Borrower or Guarantor
On a CMHC-insured mortgage, the 600 minimum only needs to be met by at least one borrower or guarantor. A spouse, partner or family member with stronger credit can therefore help a file clear the insurer's floor. The trade-off: every applicant's credit report is reviewed, and a co-borrower's debt payments go into the household TDS ratio alongside their income. A guarantor is legally on the hook for the mortgage if you don't pay, so it's a serious commitment for them.
Newcomers With No Canadian Credit History
Credit bureaus only track credit activity in Canada, so recent arrivals often have no score at all. CMHC says that where there is limited Canadian credit history it may consider an international credit report, a letter of reference from your financial institution in your country of origin, or other alternative ways of establishing creditworthiness. See our guide to mortgages for newcomers to Canada for which documents lenders accept and the bank newcomer programs built on top of this.
▶ Check where you stand before you apply
- Mortgage Qualifier CalculatorSee the mortgage you'd likely qualify for at today's GDS/TDS limits.
- Mortgage Stress Test CalculatorTest your ratios at the qualifying rate a lender will actually use.
- Mortgage Affordability CalculatorTurn your income, debts and down payment into a maximum home price.
Frequently Asked Questions
This page is for informational purposes only and does not constitute financial advice. Lender credit policies change and vary by lender — confirm your own situation with a lender or licensed mortgage broker.
Sources
- CMHC — Homeowner mortgage loan insurance (minimum credit score, GDS/TDS, qualifying rate)
- CMHC — Newcomers (alternative credit for limited Canadian credit history)
- FCAC — Credit report and score basics
- FCAC — Getting your credit report and score
- FCAC — Improving your credit score
- FCAC — Mortgage preapproval
- OSFI — Minimum qualifying rate for uninsured mortgages
- Equifax Canada — What is a good credit score?
▶ Related guides
- How to Qualify for a Mortgage in CanadaIncome, GDS/TDS, the stress test and self-employed rules in one checklist.
- What Is the Mortgage Stress Test?How the qualifying rate works and how much it reduces what you can borrow.
- Mortgages for Newcomers to CanadaGetting approved without a Canadian credit history.