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: 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 Type A-Lenders (Banks and Prime Lenders) Best Rate Score Insured (under 20% down) 680 720+ Conventional (20%+ down) 680 720+ Refinance 680 720+ B-Lenders (Alternative Lenders) Rate Premium Standard programs 550-600 +0.75% - 1.50% Equity programs 500-550 +1.50% - 2.50% Private Lenders No minimum credit score (equity-based lending) Focus on property value and down payment Rates: 8-15%+ typically How Your Credit Score Affects Your Rate The difference a credit score makes on a $500,000 mortgage: 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 Score Understanding the components helps you prioritize improvements: Payment History (35%) The single most important factor: Pay all bills on time, every time Set up automatic payments Even one 30-day late payment can drop your score 50-100 points Credit Utilization (30%) How much of your available credit you're using: Ideal: Under 30% of limits Best: Under 10% of limits Example: $3,000 balance on $10,000 limit = 30% utilization Credit History Length (15%) Longer history = higher score Don't close old accounts (even if unused) Average age of accounts matters Credit Mix (10%) Variety of credit types helps: credit cards, lines of credit, loans Don't open accounts just for mix—natural diversity is fine New Credit Inquiries (10%) Hard inquiries can lower score temporarily (5-10 points) Multiple mortgage inquiries within 14-30 days count as one Soft inquiries (checking your own) don't affect score How to Improve Your Credit Score Fast Quick Wins (1-2 Months) 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. 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. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions 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. 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.
