Credit Score for a Mortgage in Canada: What You Need

Getting a mortgage is the largest financial commitment most Canadians make. Your credit score is one of the most heavily weighted factors lenders use to decide whether to approve you and at what rate. Here's the complete picture for 2026.

Minimum Credit Scores for Canadian Mortgages

How Your Score Affects Your Mortgage Rate

The difference between a 650 and a 760 credit score on a Canadian mortgage can be 0.5-1.5% in interest rate. On a $500,000 mortgage over 25 years, that is a difference of $50,000-$150,000 in total interest paid. Your credit score is worth significant money in the mortgage context.

CMHC Mortgage Insurance Rules

If your down payment is less than 20% of the purchase price, you must buy CMHC mortgage default insurance (or insurance from Sagen or Canada Guaranty). CMHC requires a minimum 600 credit score, but in practice many lenders require 620-650 for insured mortgages. Key CMHC rules:

• Minimum 5% down payment on properties under $500,000
• Minimum 10% on the portion of purchase price above $500,000
• Not available for homes over $1.5 million
• Minimum credit score: 600 (CMHC); most lenders require 620+
• Maximum amortization: 25 years (insured)

Conventional Mortgage (20%+ Down)

With 20% or more down, you don't need mortgage default insurance. Requirements are set by each lender individually. Most major Canadian banks prefer 660+ for conventional mortgages. Some credit unions are more flexible. Alternative (B) lenders will consider 550+ at higher rates.

How to Improve Your Score Before Applying

1. Check both Equifax and TransUnion reports for errors — dispute anything incorrect
2. Pay down credit card balances to under 30% of limit
3. Avoid any new credit applications for 6-12 months before your mortgage application
4. Don't close any old accounts
5. Build payment history with KOHO Credit Building if your file is thin