TL;DR: The minimum credit score for an insured mortgage (under 20% down) in Canada is 600, set by CMHC. For the best rates with a major bank, you want 680 or above. If you’re in between, you still have options. And if you’re not there yet, 6 to 12 months of focused habits can make a real difference.
You Googled it. You checked the number. And now you’re staring at it, wondering: is this enough?
Maybe it’s 640. Maybe it’s 590. Maybe you’ve never really thought about your credit score before and you’re shocked to find out it exists on a scale that apparently determines whether or not you can buy a home.
Here’s what I want you to know first: your credit score is a starting point, not a verdict. As a mortgage associate who’s also an underwriter, I’ve seen buyers with scores of 620 get approved. And I’ve seen buyers with scores of 720 who had other issues to work through. The number matters, but it doesn’t tell the whole story.
Let me break it down in plain language.
The Three Tiers of Lenders and Why Your Score Determines Which Door Opens
In Canada, mortgage lenders are generally grouped into three tiers. Each has different credit score thresholds. Understanding which tier you’re likely to qualify with changes the whole conversation.
A Lenders (the big banks and prime lenders)
Think TD, RBC, Scotiabank, BMO, and similar institutions. These lenders offer the most competitive rates, but they’re also the most selective. A credit score of 680 or above gives you access to the widest range of A lenders and their best rates. If your score is between 600 and 679, you can still qualify with an A lender, but not every A lender accepts scores in that range, so your options are more limited. Expect more scrutiny and potentially a slightly higher rate. One exception to keep in mind: if you’re refinancing, many A lenders require a score above 680 to keep your mortgage on the A side. For a purchase, the 600 to 679 range is still workable.
B Lenders (alternative lenders)
Companies like Home Trust, Equitable Bank, and ICICI Bank fall into this category. They’re federally regulated, but designed to accommodate borrowers who don’t fit the prime mould. Credit scores in the 550 to 620 range, self-employed income, recent collections, or a short credit history. The trade-off is a higher interest rate and, in all cases, a requirement for a 20% down payment (no CMHC insurance required when you put down 20% or more). You’ll also typically pay a lender fee, with the amount set by the individual lender.
Private Lenders
Private lenders are individuals or companies that lend based primarily on the property’s value and your equity position, not your credit score. They’re the most flexible and the most expensive. Private lending is usually a short-term bridge. A place to land while you rebuild your profile. Not a long-term mortgage strategy.
| Lender Type | Typical Credit Score | Down Payment | Notes |
|---|---|---|---|
| A Lenders (banks) | 600+ (680+ for full lender access & best rates) | 5% minimum (insured) | Best rates; most competitive |
| B Lenders (alternative) | 550 to 620 | 20% required | Higher rates; more flexibility on income |
| Private Lenders | Varies; equity-based | 25 to 35%+ often required | Short-term bridge; highest rates |
The CMHC Floor: 600
If you’re putting down less than 20% of the purchase price, your mortgage must be insured. In Canada, the main insurer is CMHC (Canada Mortgage and Housing Corporation). Their minimum credit score requirement is 600. If every borrower on the application has a score of 600 or above, you can proceed with an insured mortgage.
That said, meeting the minimum doesn’t guarantee approval. Lenders still assess the full application. The 600 is a floor, not a finish line.
Credit Score Is One Piece. Here’s What Else Lenders Look At.
A lot of buyers fixate on the number and don’t realize it’s one of several factors. Here’s what lenders actually evaluate:
Gross Debt Service (GDS) ratio: Your housing costs (mortgage payment, property tax, heat, and half of condo fees if applicable) should be no more than 39% of your gross income, per CMHC guidelines. (As of April 2026, source: cmhc-schl.gc.ca)
Total Debt Service (TDS) ratio: All debts combined (housing costs, car payments, student loans, credit cards) should be no more than 44% of your gross income. (As of April 2026, source: cmhc-schl.gc.ca)
Down payment: Where it came from, how long it’s been in your account, and whether any of it is a gift.
Employment and income: How long you’ve been with your employer, whether your income is salaried or variable, and for self-employed buyers, the nature and documentation of that income.
Credit history: Not just the score, but the story behind it. One missed payment three years ago is different from ongoing collections.
What Actually Makes Up Your Credit Score in Canada
In Canada, your credit score is reported by two bureaus: Equifax and TransUnion. Your score may differ slightly between the two, since not all lenders report to both. The factors that go into your score are:
Payment history (the biggest factor): Are you paying on time, every time? Even one missed payment can drop your score significantly.
Credit utilization: How much of your available credit are you using? Keeping your balances under 30% of your limit is the benchmark. Ideally closer to 10%.
Length of credit history: How long your accounts have been open. Older accounts in good standing help your score.
Types of credit: A mix of revolving credit (credit cards) and installment credit (car loan, student loan) shows lenders you can manage both.
New credit inquiries: Applying for new credit triggers a “hard inquiry” that can temporarily lower your score by a few points. But here’s a common misconception. When you’re shopping for a mortgage and multiple lenders pull your credit within a 14 to 45 day window, credit bureaus typically treat those as a single inquiry. Rate shopping within a focused timeframe has minimal impact.
If Your Score Isn’t There Yet, Here’s What Actually Moves the Needle
This is the part that’s missing from most articles on this topic. It’s not just “pay your bills on time.” Here’s what actually works:
1. Reduce credit card balances first.
Utilization is one of the fastest factors to shift. If your card is maxed out, paying it down to under 30% of the limit can noticeably improve your score within one to two billing cycles.
2. Don’t close old accounts.
Even if you don’t use a card anymore, keeping it open maintains your credit history length. Just make sure it’s paid off.
3. Check your credit report for errors.
You’re entitled to a free copy of your credit report from both Equifax and TransUnion. Errors are more common than most people realize: incorrect balances, accounts that aren’t yours, paid-off debts still showing as outstanding.
4. Be strategic with new applications.
Avoid applying for new credit cards or car loans in the three to six months before you plan to apply for a mortgage.
5. Ask about becoming an authorized user.
If a parent or partner has a long-standing account with a strong history, being added as an authorized user can import that positive history to your report.
The timeline: most people with fair credit (600 to 650) who focus on these habits can move into a stronger range within 6 to 12 months. It’s not instant. But it’s not as slow as you might think.
What This Means for You
If your score is above 680, you’re in a strong position to work with prime lenders and access the most competitive rates. If you’re in the 600 to 679 range, you likely have options. It just depends on the full picture of your application. And if you’re below 600, there are still paths forward, even if the first step is building your score for a few months before applying.
What I’d encourage you not to do: assume the number you see means you can’t buy. I’ve worked with buyers across all of these tiers. Sometimes the most helpful conversation we have is not “here’s your approval” but “here’s exactly what to focus on for the next 6 months so you get there on your terms.”
Every situation is different. The best way to know where you actually stand is to have someone look at the whole picture with you. Not just the score.
Frequently Asked Questions
My credit score is 650. Can I get a mortgage in Alberta?
Possibly, yes. But it depends on other factors like your income, down payment, and debt ratios. With a score of 650 and less than 20% down, you’d meet the CMHC minimum of 600. Individual lenders may set their own thresholds above that, though. The best step is to have a broker pull your full credit report and review the complete application picture with you.
Will shopping around for mortgage rates hurt my credit score?
Not as much as people fear. Credit bureaus typically group multiple mortgage-related inquiries made within a short window (roughly 14 to 45 days) and treat them as a single inquiry. Rate shopping within a focused timeframe has minimal impact on your score.
How long does it take to improve a credit score in Canada?
It depends on what’s pulling the score down. Reducing high credit card utilization can show results within one to two billing cycles. Building a consistent on-time payment history typically improves scores noticeably within 6 to 12 months. More serious issues like collections or bankruptcies take longer to age off a credit report.
Ready to Know Where You Stand?
You don’t have to figure this out from a number on a screen. A 30-minute conversation can tell you a lot more than your credit score alone. We’ll look at where you actually sit with lenders, what’s helping and what’s holding you back, and what a realistic path to a mortgage looks like for your situation.
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Information current as of April 2026. Mortgage rules, rates, and programs change frequently. All illustrative examples and hypothetical scenarios in this post are for educational purposes only and do not represent real transactions, clients, or outcomes. This post does not constitute financial, legal, or tax advice. All programs and mortgage structures are subject to qualification, lender approval, and insurer policy. Julia Fontan is a licensed mortgage associate with DLC Source Mortgage Centre.
