Minimum Credit Score for a Mortgage: It Depends on the Lender
There isn't a single minimum credit score to buy a home in Canada. There are several, depending on the type of lender, your down payment, income, debts, and the overall strength of your file.
A score that makes it harder to get approved at a big bank may still be accepted by an alternative lender. On the flip side, a good credit score doesn't automatically guarantee approval if your debt ratios are too high.
Short answer: for an insured mortgage with a down payment under 20%, a minimum score of 600 for at least one borrower or guarantor is an important benchmark for some insurers, including CMHC. To get the best rates from traditional lenders, a score around 680 or higher is often a good target. Below that, alternative lenders can sometimes be an option, and private lenders generally become a last-resort solution.
Educational content based on public sources and general market practices. Actual criteria vary by lender and by file — confirm your situation with a professional. HypothequeGo.ca is a general information site, not affiliated with a mortgage brokerage.
Big banks and "A" lenders
Canada's big banks and traditional lenders generally look for a strong file: good credit score, stable income, reasonable debts, verifiable down payment, and a qualifying property.
A score around 680 or higher is often a good target for the best rates and terms. That said, it isn't an absolute wall. A file can be stronger or weaker depending on several factors: income, employment stability, GDS/TDS ratios, payment history, down payment, and property type.
If your score is below 680, you're not automatically excluded, but you may have fewer options, a less favourable rate, or need a stronger file elsewhere.
Insured mortgages: CMHC and private insurers
If your down payment is under 20%, your mortgage generally needs to be insured. This is often called an insured mortgage.
For several mortgage insurance products, a score of 600 is an important benchmark. For example, CMHC states that at least one borrower or guarantor must have a minimum score of 600. Sagen also requires a minimum score of 600 for certain loans with a loan-to-value ratio above 80%.
That doesn't mean a 600 score guarantees approval. Debt ratios, income, down payment, credit history, and the property itself also need to meet the lender's and the insurer's criteria.
Alternative or "B" lenders
Alternative lenders, sometimes called "B" lenders, can be more flexible than the big banks. They can be useful for borrowers with a lower score, less traditional income, self-employment, or a file that doesn't quite fit a bank's criteria.
The trade-off matters: rates are generally higher, fees may apply, and the required down payment can be larger.
It's best to see alternative lenders as a transitional or strategic solution, not as an option to pick without comparing the costs.
Private lenders
Private lenders are often used when banks and alternative lenders decline a file, or when the situation calls for a more flexible solution.
They may accept more difficult files, but the cost is generally much higher: higher rates, additional fees, legal fees, lender fees, and sometimes stricter conditions on down payment or available equity.
Before signing with a private lender, make sure you understand the total cost, the loan term, penalties, fees, and your exit strategy. The goal should generally be to move back to a traditional or alternative lender as soon as your file allows it.
Quick comparison
| Lender type | Typical credit score | Key takeaway |
|---|---|---|
| Big banks / A lenders | Often 680+ for the strongest files | Best rates, stricter criteria |
| Insured mortgage | Important benchmark: 600 for at least one borrower or guarantor per some insurers | Needed if down payment is under 20% |
| Alternative / B lenders | Often more flexible, sometimes around 550-680 depending on the file | Higher rates, possible fees |
| Private lenders | Sometimes used when credit or the file doesn't qualify elsewhere | Higher costs, often larger down payment or equity required |
What if your score is under 600?
If your score is under 600, don't automatically jump to a private lender. There may be other steps worth considering first.
You can start by checking your credit report for errors, lowering your credit card utilization, paying down certain debts, avoiding unnecessary new credit, and making sure your payments are on time.
You can also strengthen your file in other ways: increasing your down payment, lowering your debt ratio, adding a qualifying co-borrower, or waiting before buying to build up your profile.
Some actions can help fairly quickly, but the timeline varies by situation. The important thing is understanding what weighs most heavily on your score and on your mortgage file.
Frequently asked questions
Does my credit score need to be perfect to buy a home? expand_more
No. Your score doesn't need to be perfect. A higher score generally gives you access to more options and better terms, but approval depends on the whole file: income, debts, down payment, employment stability, and the property.
Does a 600 score guarantee an insured mortgage? expand_more
No. A score of 600 can be an important minimum threshold for certain mortgage insurance products, but it's not a guarantee. The lender and the insurer also need to approve the rest of the file.
Do credit unions have the same requirements as banks? expand_more
They can have similar criteria for the best rates, but some institutions may be more flexible depending on the file. Criteria vary from one institution to another.
How long does it take to improve your score before applying? expand_more
It depends on your situation. Lowering credit card utilization, correcting an error on your file, or catching up on payments can help, but there's no guaranteed timeline. It's best to check your file several months before applying for a mortgage.
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Conclusion
The minimum credit score for a mortgage mostly depends on the type of lender. For an insured mortgage, a score of 600 for at least one borrower or guarantor is an important benchmark for some insurers. For the best rates from traditional lenders, aiming for 680 or higher remains a good target.
If your score is lower, options sometimes exist, but they can cost more. Before choosing an alternative or private lender, compare the fees, rates, terms, and your strategy for moving back to a more favourable solution.