• What Credit Score Do You Need for a Mortgage?

In Canada, the minimum credit score for an insured mortgage (less than 20% down) is 600 at most federally regulated lenders, though some require 620 or higher. Conventional mortgages (20% or more down) typically require a minimum of 680 to access the most competitive rates and the broadest lender selection. Scores below 600 do not necessarily disqualify you from homeownership, but they push you into B-lenders or private lending, which come with meaningfully higher rates and additional fees.

• How Credit Scores Are Calculated in Canada

Canadian credit scores run from 300 to 900 and are calculated by Equifax and TransUnion using similar but not identical models. The five main factors, in rough order of weight, are: payment history (whether you pay on time), credit utilization (how much of your available credit you are using), length of credit history, credit mix (types of accounts), and new credit inquiries. Payment history is the most heavily weighted — a single missed payment can reduce your score significantly and remains on your report for six years.

• Score Ranges and What They Mean for Your Mortgage

• The Real Cost of a Lower Score

To understand the financial stakes, consider a $600,000 mortgage over 25 years. At 5.0%, total interest paid is approximately $440,000. At 5.75% (a rate a buyer with a fair score might face), total interest rises to approximately $515,000. That $75,000 difference traces directly to credit score. The gap is even wider when the difference is between A-lender and B-lender rates, where spreads of 1% to 2% or more are common. Time spent improving your score before applying is among the highest-return financial activities available to a prospective buyer.

• How to Check Your Score for Free

You can check your credit score for free in Canada without affecting it (a soft inquiry). Borrowell and Credit Karma both provide free access to Equifax scores and update them weekly. You are also entitled to request a free credit report from Equifax and TransUnion directly, though the reports rather than scores are what they provide without charge. Review your report annually for errors — incorrect account information, collections you do not recognize, or accounts that should have been closed — as these errors are not uncommon and can meaningfully suppress your score.

• Building Your Score Before Applying

The most reliable ways to improve a credit score before a mortgage application are to pay every bill on time without exception, reduce credit card and revolving credit balances to below 30% of the credit limit (ideally below 10%), avoid applying for new credit in the six to twelve months before your mortgage application, and keep older accounts open even if you do not use them regularly (length of history matters). If your score is low because of limited credit history rather than negative items, a secured credit card used lightly and paid in full each month builds a reliable track record over six to twelve months.

• Hard Inquiries and Shopping for Rates

A mortgage pre-approval involves a hard credit inquiry, which can temporarily reduce your score by a few points. However, both Equifax and TransUnion treat multiple mortgage inquiries made within a 14-to-45-day window as a single inquiry for scoring purposes — recognizing that consumers comparison shop. This means you can apply to several lenders or work with a mortgage broker who submits your application to multiple lenders without multiplying the credit impact. Rate shopping within a short window will not compound the score reduction.

• Credit Score Myths Worth Clearing Up

Myth: Checking your own score hurts it. Self-checks are soft inquiries and have zero impact on your score.

Myth: Carrying a balance improves your score. Paying your card in full every month is better for your score than carrying a balance. The myth confuses activity with debt.

Myth: Closing unused cards improves your score. Closing a card reduces your available credit and can increase your utilization ratio, potentially lowering your score. Keep old accounts open unless there is a compelling reason to close them.

• What to Do If Your Score Is Too Low

If your score falls below 600 and you are not yet ready to buy, use the time before your target purchase to build it systematically. A focused 12-to-24-month effort of on-time payments and reduced utilization can move most scores from the fair range into the good range, unlocking significantly better rates. If you need to buy sooner, a mortgage broker who works with B-lenders can help you find a path to approval — but go in with a clear plan to refinance to an A-lender once your score improves, since B-lender rates can be substantially higher.

• Check It Now, Not at Application

The worst time to discover a credit problem is during a mortgage application. Pull your credit report today — it costs nothing — and review it for errors or issues that need time to resolve. If your score is where you want it, you are ready to apply with confidence. If it is not, every month you spend improving it before your application is worth more than any other pre-purchase financial activity.