Credit Score Requirements for Canadian Mortgages 2024

Why Your Credit Score Matters for a Mortgage

Your credit score is one of the first things a lender looks at, because it's a fast, standardized signal of how reliably you repay what you borrow. In Canada, scores generally run from 300 to 900, and while every lender weighs them slightly differently, your score influences two things: whether you qualify at all, and what rate you're offered. A strong score doesn't just open doors — it can save you thousands over the life of a mortgage through a better rate.

The General Ranges Lenders Look For

There are no single, universal cutoffs — each lender sets its own policy — but the broad landscape looks like this:

• Prime / "A" lenders (the big banks, credit unions, and monoline lenders) want to see a score in the good-to-excellent range. This is where the sharpest rates live. Insured, high-ratio mortgages generally require a minimum score in the low-600s as published by the default insurers, though most prime lenders prefer to see higher.
• Alternative / "B" lenders work with borrowers whose scores sit below prime thresholds, or whose income is harder to document. They approve more files, but usually at higher rates and with lender fees.
• Private lenders focus on the property and your equity more than the score, and price accordingly — a short-term bridge, not a destination.

The higher your score, the more lenders compete for your business and the better your pricing. As your score falls, your options narrow and your costs rise — but options still exist at every level.

What Actually Moves Your Score

Five broad factors drive a Canadian credit score, and understanding them tells you exactly what to work on:

• Payment history — the single biggest factor. Even one missed or late payment leaves a mark; a pattern of them is damaging.
• Credit utilization — how much of your available credit you're using. Running cards near their limits hurts; keeping balances well below the limit helps.
• Length of credit history — older, established accounts strengthen your profile. Closing your oldest card can quietly backfire.
• Credit mix — a healthy blend of revolving credit (cards) and installment credit (loans) is viewed favourably.
• New inquiries — each application for new credit can nudge your score down, and a flurry of them in a short window is a red flag.

How to Improve Your Score Before Applying

If you're planning a purchase, give yourself a runway of a few months and focus on the levers that move fastest:

1. Pay every bill on time, every time. Set up automatic minimum payments so nothing slips. This is the highest-impact habit.
2. Bring balances down. Getting cards below a third of their limit — and ideally lower — can lift your score meaningfully.
3. Don't close old accounts. Keep long-standing cards open to preserve your history and available credit.
4. Avoid new applications. Hold off on car loans, new cards, or financing offers in the months before you apply for a mortgage.
5. Check your report for errors. Pull your file from Canada's credit bureaus and dispute anything inaccurate — mistakes are more common than people expect, and fixing them is free.

If Your Score Isn't Where You Want It

A lower score is not a dead end. Alternative and private lenders exist precisely for borrowers who don't fit the prime box — whether because of a past setback, thin credit, or self-employment income. A larger down payment also strengthens a weaker-credit application by reducing the lender's risk. The trade-off is usually rate and fees, but for many buyers an alternative mortgage today, refinanced to a prime lender once credit recovers, is a sound path.

The Bottom Line

Credit is a lever you can pull. Lenders look for consistent, on-time repayment and sensible use of the credit you already have — not perfection. Know roughly where you stand, give yourself a few months to tidy up the highest-impact items, and you'll walk into your application with more options and better pricing. And if your score isn't ideal yet, the right lender still exists for your situation.

Ready to see what you qualify for? Compare current rates or plan your budget with our mortgage calculators.