Your credit score is one of the most important factors in your mortgage application. It affects whether you're approved, what rate you get, and which lenders will work with you. Here's everything you need to know about credit score requirements in 2026.
Credit Score Ranges and What They Mean
In Canada, credit scores range from 300 to 900:
| Score Range | Rating | Mortgage Implications | ------------- | -------- | ---------------------- | 760-900 | Excellent | Best rates, all lenders available | 725-759 | Very Good | Near-best rates, most lenders | 680-724 | Good | A-lender minimum, competitive rates | 620-679 | Fair | B-lender territory, higher rates | 560-619 | Poor | Limited options, private may be needed | Below 560 | Very Poor | Private lender likely required |
Minimum Credit Scores by Lender TypeA-Lenders (Banks and Prime Lenders) |
Scenario | Minimum Score | Best Rate Score | ---------- | -------------- | ---------------- | Insured (under 20% down) | 680 | 720+ | Conventional (20%+ down) | 680 | 720+ | Refinance | 680 | 720+ |
B-Lenders (Alternative Lenders) |
Scenario | Minimum Score | Rate Premium | ---------- | -------------- | ------------- | Standard programs | 550-600 | +0.75% - 1.50% | Equity programs | 500-550 | +1.50% - 2.50% |
Private Lenders
How Your Credit Score Affects Your RateThe difference a credit score makes on a $500,000 mortgage: |
Credit Score | Approximate Rate | Monthly Payment | 5-Year Difference vs 760+ | -------------- | ----------------- | ----------------- | ---------------------------- | 760+ | 4.00% | $2,630 | Baseline | 720-759 | 4.10% | $2,658 | +$1,680 | 680-719 | 4.25% | $2,700 | +$4,200 | 620-679 | 5.00% (B) | $2,908 | +$16,680 | Below 620 | 6.00%+ (B/Private) | $3,156+ | +$31,560+ | The takeaway: Even small credit improvements can save you thousands.
Need to Improve Your Score?Get pre-approved now to see exactly where you stand. Our team can advise on credit improvement strategies while you shop for homes. What Makes Up Your Credit ScoreUnderstanding the components helps you prioritize improvements: Payment History (35%)The single most important factor:
Credit Utilization (30%)How much of your available credit you're using: Need to Improve Your Score?Get pre-approved to see where you stand and get credit advice. Get Started
Credit History Length (15%)
Credit Mix (10%)
New Credit Inquiries (10%)
How to Improve Your Credit Score FastQuick Wins (1-2 Months) |
Action | Potential Impact |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Pay down credit cards below 30% | +20-50 points | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Become authorized user on family member's old card | +10-30 points | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dispute and remove errors | +50-100 points | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pay off collections (if recent) | +20-50 points |
Medium-Term Strategies (3-6 Months)
- Establish consistent on-time payments
- Keep credit cards active but low
- Don't apply for new credit
- Mix of credit types
What NOT to Do Before a Mortgage
- Don't close credit cards
- Don't open new accounts
- Don't max out credit lines
- Don't co-sign for anyone
- Don't change banks unnecessarily
For more detailed strategies, see our credit improvement guide.
FAQ
Q: Can I get a mortgage with bad credit?
A: Yes—B-lenders and private lenders work with lower credit scores. You'll pay higher rates, but you can refinance to better options as your credit improves.
Q: How long does it take to improve a credit score?
A: Quick wins can show improvement in 1-2 months. Significant improvement typically takes 3-6 months of consistent good behavior.
Q: Does checking my own credit hurt my score?
A: No—checking your own credit (soft inquiry) has no impact on your score. Check it regularly through Equifax or TransUnion.
Q: How long do negative items stay on my credit report?
A: Most negative items stay for 6-7 years from the date of last activity. Bankruptcy can stay for 6-14 years depending on the province.
Q: Should I pay off collections before applying for a mortgage?
A: It depends. Sometimes paying old collections can actually temporarily lower your score. Consult with a mortgage professional before paying off collections.
What's Next
Your credit score is just one piece of the puzzle. Get pre-approved today to see the full picture of what you qualify for—our team has helped thousands of Canadians with all credit situations.
Check Your Options
Find out what you qualify for at any credit score. Our team specializes in finding solutions for all credit situations.
