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 Type
A-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
- 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:
| 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 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)
| 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.
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Contact us today for personalized mortgage advice and competitive rates.
