What Credit Score Do You Need for a Mortgage in Canada? (2026)
By Jordan Ellis · Published · Reviewed
Quick Answer
For an insured Canadian mortgage (under 20% down), CMHC requires at least one borrower to have a credit score of 600 or more, with debt ratios of up to 39% GDS and 44% TDS; insured borrowers under 680 are often held to 35% GDS and 42% TDS instead. In practice most A-lenders look for 650–680 or higher, and the best rates generally go to strong scores. If weak credit pushes you to a B-lender at 2% more, the extra cost on a $500,000 mortgage is roughly $50,000 over a five-year term.
Your credit score is the quiet third number in every mortgage approval — after income and down payment, it decides both whether you get the loan and what it costs.
The tiers, in real terms
| Score | What happens |
|---|---|
| Under 600 | Below CMHC’s minimum for an insured mortgage; usually B-lenders or private lenders, at higher rates and fees |
| 600–679 | Can meet CMHC’s minimum, but insured files are often capped at 35/42 ratios instead of 39/44, which cuts buying power by roughly 10–15% |
| 680–739 | Broad A-lender access at standard rates |
| Mid-700s+ | Generally the best available offers |
These bands are a rough guide rather than fixed rules: each lender and insurer weighs your score alongside income, debts, down payment and the property. For a borrower in the 600–679 band, the tighter ratio cap can hurt more than the rate. See the ratio mechanics on the stress test calculator.
The dollar cost of the rate penalty
On $500,000 over 25 years, each 1% of rate (say 5.5% instead of 4.5%) is roughly $285/month and about $24,000 of extra interest over a 5-year term. A B-lender deal at +2% with a 1% fee costs about $53,000 more than A-lender pricing over that first term — which is why 12 months of score repair before applying can be the highest-paying year of your life.
What actually moves your score
Canadian scores run 300–900 across Equifax and TransUnion, and the levers are well understood:
- Utilization below 30% (below 10% is better) — the fastest mover, works in weeks (the tactics)
- Perfect payment history — the biggest single factor; a missed payment can stay on your report for years
- Don’t close old cards — history length matters
- Limit new applications — hard pulls cost points; mortgage rate-shopping within a short window counts as one
Thin file or new to Canada? A secured card builds history from zero in 6–12 months.
Before you apply
- Pull both reports free (Equifax and TransUnion) and dispute errors — they’re common
- Get utilization under 30% on every card, not just overall
- Stop all new credit applications 3–6 months out
- Get a real pre-approval — it rate-holds and reveals problems while they’re still fixable
The score you apply with is worth tens of thousands of dollars. Treat the year before a mortgage like the financial event it is.
Official sources
Rules and dollar limits change. Confirm current amounts with the official pages below before you act · Last reviewed .
- Minimum qualifying rate for uninsured mortgages (OSFI)
- Guideline B-20 explained (OSFI)
- Credit report and score basics (Financial Consumer Agency of Canada)
- Equifax Canada: personal credit (Equifax Canada)
- TransUnion Canada (TransUnion)