Is My Credit Score High Enough for a Mortgage in Canada?

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The minimum credit score required to obtain a mortgage in Canada varies significantly depending on the lender type, the mortgage product, and the nature of your real estate project. A-lenders (major banks and Desjardins caisses populaires in Quebec) generally require a Beacon score of at least 680 to offer their best rates. B-lenders (alternative lenders) accept scores between 500 and 650 but charge higher rates to compensate for the increased risk. For loans insured by the Canada Mortgage and Housing Corporation (CMHC), the Office of the Superintendent of Financial Institutions (OSFI) sets minimum requirements that insurers must respect. A score of 600 is the floor generally accepted for mortgage insurance. Refinancing projects, rental property purchases, or self-employed applications may require higher thresholds. Understanding these thresholds allows you to target the right lender and develop a realistic strategy with your AMF-certified mortgage broker in Quebec.

Is My Credit Score Good Enough for My Mortgage Goals?

The question most Canadian borrowers ask is straightforward: is my credit score high enough to get the mortgage I am aiming for? The answer depends on several factors, including the type of lender you are targeting, the mortgage product you want, and the specific nature of your real estate project. Your AMF-certified mortgage broker is best positioned to evaluate your overall situation and guide you toward the appropriate lenders.

Thresholds by Lender Category

In Canada, mortgage lenders are classified into three main categories, each with its own credit requirements. A-lenders include the six major Canadian banks, Desjardins caisses populaires, and certain trust companies. They offer the most competitive rates but require a strong credit profile. B-lenders, also called alternative lenders, accept weaker credit profiles in exchange for higher rates. Private lenders are the last resort for borrowers whose credit does not meet the criteria of any other category.

A-lenders (banks, Desjardins, trust companies): minimum score of 680 for the most competitive rates. Some accept 650 with a slightly higher rate. Require a gross debt service (GDS) ratio of 39% and total debt service (TDS) ratio of 44% maximum under OSFI Guideline B-20.
B-lenders (alternative): accept scores between 500 and 650. Rates are 1% to 3% higher than A-lenders. Lender fees of 0.50% to 1.50% of the mortgage amount. More flexible ratio requirements.
Private lenders: no strict score threshold. Decision based primarily on property value and down payment. Rates of 7% to 15% and fees of 2% to 5%. Temporary solution only.

Thresholds by Project Type

The nature of your real estate project directly influences the required credit score. A principal residence purchase with mortgage insurance is the most accessible scenario. Refinancing often requires a higher score because the lender is extending additional financing. Purchasing a rental property is considered higher risk by lenders, as are applications from self-employed individuals whose income may be more difficult to document according to conventional lender standards.

Stress test (qualifying rate): Under OSFI Guideline B-20, all borrowers must qualify at the contract rate plus 2%, or the Bank of Canada's floor rate (currently 5.25%), whichever is higher. This rule applies regardless of your credit score and is designed to verify your repayment capacity in the event of a rate increase.

Strategies to Optimize Your Position

If your score is just below an important threshold (for example, 670 instead of 680), a few targeted adjustments may be enough to push you to the next level. Reducing your credit utilization below 30% of your limits, making all payments on time for two to three consecutive months, and avoiding new credit applications are the most effective short-term actions. Your AMF-certified mortgage broker can help you identify the specific measures to take to reach the threshold required for your project, taking into account your complete financial profile and the criteria of the targeted lender.

Frequently Asked Questions

What minimum score do I need for a mortgage in Canada?

There is no single absolute minimum. A-lenders generally require 680 or higher for their best rates. B-lenders accept scores between 500 and 650 with higher rates. Private lenders may accept even lower scores but at considerably higher rates. CMHC requires a minimum of 600 for mortgage insurance.

My score is 650: what are my options?

With a score of 650, you will not access the best A-lender rates, but you have several options. Some A-lenders offer a slightly higher rate. B-lenders provide solutions with a rate premium. Your broker may also advise improving your score for a few months before submitting your application if your timeline allows.

Is the threshold different for a rental property?

Yes, lenders generally require a higher score for rental properties, often 680 or more even among A-lenders. Some lenders require 700 or higher for properties with five or more units. OSFI considers rental properties a higher risk, which is reflected in credit requirements.

My spouse has a low score: is that an obstacle?

If you borrow jointly, the lender typically considers the lower score of the two borrowers for eligibility. One strategy is to submit the application in the name of the spouse with the better score, provided their income alone is sufficient for qualification under OSFI guidelines.

Is the score requirement the same for a renewal?

When renewing with your current lender, credit requirements are generally less strict because the lender already has your mortgage payment history. However, if you wish to transfer your mortgage to another lender, that lender will apply its own credit criteria as if it were a new application.