Key takeaways
- Canadian credit scores usually range from 300 to 900. Higher is better.
- Payment history and how much of your available credit you use are the biggest factors.
- There's no single national minimum score. Many lenders prefer scores around 680 or higher for the best options.
- Check your credit reports for errors before you apply.
Your credit report and score tell lenders how you've handled borrowing in the past. They're a major piece of any mortgage application.
The basics
In Canada, credit scores usually range from 300 to 900. They're produced by credit bureaus (Equifax and TransUnion) from the information in your credit report.
What affects your score
- Payment history (about 35%): late or missed payments hurt the most
- Credit utilization (about 30%): using a big share of your limits lowers your score
- Length of credit history
- Types of credit you use
- New credit and inquiries
Weightings are approximate and vary by scoring model.
What score do you need?
There's no single national minimum. Many lenders prefer a score of around 680 or more for the best rates, while alternative lenders may work with lower scores at higher cost. Lenders also look at your income, debts, down payment and the property, not only your score.
Steps to strengthen your credit
- Get your reports. Order free copies from both bureaus and look for errors.
- Pay on time, every time. Set up automatic payments for at least the minimum.
- Keep balances low. Aim to use well under your limit on cards and lines of credit.
- Avoid new credit before applying. Don't open new cards or loans in the months before you apply.
- Keep old accounts open if they have no fee, since age of credit helps.
- Fix mistakes. Dispute errors with the bureau.
Does applying hurt my score?
When you apply for a mortgage, lenders usually run a hard credit check, which can appear as an inquiry. Multiple mortgage inquiries within a short window are often treated as a single search by scoring models, but this varies. Ask before you apply.
Rebuilding credit
If your credit is damaged, you still have options, sometimes with an alternative lender and a plan to improve your credit and move to a conventional mortgage later. See our page on alternative financing.
Sources and further reading
This article is general information, not personalized mortgage, legal, tax or financial advice. Rules, rates and eligibility change and depend on your circumstances and lender criteria. Confirm details before you make decisions.
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