What credit score do you need for a mortgage in Canada?
For an insured mortgage (under 20% down), CMHC requires at least one borrower to have a credit score of 600 or more. Lenders set their own standards above that, and the published rates on our board generally assume good credit; a weaker file may be offered a higher rate or need another lender.
The minimums
CMHC's purchase product requires a minimum credit score of 600 for at least one borrower or guarantor. Uninsured mortgages have no federal minimum; each lender decides.
Source: CMHC, Mortgage loan insurance: Purchase (minimum down payment, credit score, price cap). Checked .What lenders check
- Your credit report: payment history, balances against limits, collections, bankruptcies.
- Your debt service ratios: GDS and TDS at the stress-test rate (see debt-to-income ratios).
- Income stability, down payment source and the property.
What a higher rate costs
If your file means a lender offers you a higher rate than the best published ones, the cost adds up quickly:
| Your rate | Monthly | Extra interest over 5 years |
|---|---|---|
| 4.50% | $2,213.89 | — |
| 5.00% | $2,326.42 | $9,596 |
| 5.50% | $2,441.57 | $19,225 |
| 6.50% | $2,679.30 | $38,561 |
Illustrative rates, chosen to show the cost of each step.
Check and improve your report
You can get your credit report free from Canada's two credit bureaus. Pay every bill on time, keep card balances well below their limits and avoid new credit applications just before you apply for a mortgage. FCAC explains how scores work.
| Mortgage | $400,000, 25 years |
|---|---|
| Rate with strong credit | 4.50%illustrative |
| Rate with a weaker file | 5.50%illustrative |
| Monthly payment at 4.50% | $2,213.89 |
| Monthly payment at 5.50% | $2,441.57 |
| Extra interest over 5 years | $19,225 |
What this means for you
- Before applying: pull both credit reports and fix errors; it can take weeks.
- Right before applying: avoid new credit and keep card balances low.
- If your score is below 600: an insured mortgage isn't available at that score from CMHC; expect fewer lenders and higher rates.
Frequently asked questions
Can I get a mortgage with a 600 credit score?
For an insured mortgage, CMHC's minimum is 600 for at least one borrower; individual lenders may require more. Rates for weaker files are usually higher.