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

The Canadian scoring scale

Canadian credit scores run from 300 to 900 on both Equifax and TransUnion. The same number can produce slightly different decisions at different lenders because each uses its own scoring overlay on top of the bureau number. As a rough guide:

| Score band | Tier | Typical rate position | |---|---|---| | 760–900 | A+ | Best advertised rates, most lender options | | 700–759 | A | Standard A-tier pricing | | 680–699 | A | Most A-tier lenders approve but with some overlays | | 640–679 | B (alt-A) | +50 to +100 bps, lender fee, restricted programs | | 600–639 | B (alt-A) | +100 to +200 bps, larger lender fee | | 550–599 | Private | +250 to +400 bps, 1–3% lender fee, 12–24 month term | | Under 550 | Private (selective) | High-risk private only; some won't lend at all |

A-tier (680+) — major banks and monolines

Above 680, you have full access to:

• Big 5 banks — RBC, TD, Scotiabank, BMO, CIBC
• Monolines — MCAP, First National, Merix, Equitable A-side, Manulife, Desjardins
• Credit unions — Vancity, Meridian, ATB, DUCA, etc.

With 740+ specifically, you unlock the lender's best-tier rate-promo programs. The difference between a 720 score and a 760 score can be 10–25 bps on a 5-year fixed — small per month, but $4,000–$12,000 over the term on a typical Canadian mortgage.

B-tier / alt-A (600–679) — specialty lenders

If your score is 600–679, A-tier lenders typically decline OR approve with overlay restrictions (like requiring 25% down on a deal you wanted to do at 10%). Alt-A lenders specialize in these files:

• Equitable Bank — broad alt-A program, owner-occupied + investment
• Home Trust — established alt-A lender with multiple program tiers
• Haventree Bank — broker-channel specialty lender
• CMLS Financial — alt-A and BFS programs
• B2B Bank — broker-channel B-tier

Pricing is typically 50–150 bps above A-tier rates. There's almost always a lender fee on top — 0.5% to 1.5% of the mortgage amount, paid at funding. The fee can be financed into the mortgage or paid up front.

The trade-off: you get the deal done now at higher cost, but the term is usually only 1–3 years so you can refinance into A-tier as soon as your credit recovers.

Private (sub-600 or derogatory) — short-term bridge

If your score is sub-600 OR you have a recent bankruptcy / consumer proposal / collections, you're typically in private-lender territory. Pricing:

• Rate: prime + 3–5% (so 9–12% in today's market)
• Lender fee: 1–3% of the loan
• Broker fee: 1–2% if not paid by the lender
• Term: 6–24 months — explicitly meant as a bridge
• LTV cap: typically 65–75% (lower than A or B)

Private lending exists for a specific use case: time-sensitive deals where you can't wait for A-tier approval, OR transitions where you need 12–24 months to rebuild credit before refinancing.

Don't take a private mortgage without a clear exit plan. Extending a private mortgage usually means another 1–3% in fees on top of the original. We've seen owners lose homes by stacking private renewals.

Why credit score isn't the only thing

A 660 file with 35% down, T4 salary at 5+ years tenure, and clean banking history often gets better A-tier pricing than a 720 file with 5% down, 1-year tenure, and BFS income. The other factors lenders weight:

• Down payment size — larger = lower LTV = less lender risk = better rate
• Income type — T4 salaried is preferred; commission, BFS, and rental income need stronger documentation
• Tenure — 2+ years at same employer is the standard threshold
• Debt service ratios — GDS and TDS within caps (see stress test)
• Net worth — substantial liquid assets give the lender confidence
• Property type — detached primary residence is easiest; condos, 2–4 plex, rural properties tighten the program

A file is a portfolio of these factors. Strengthening one offsets weakness in another.

How to lift a credit score in 60 days

If you're 30–80 points below the A-tier threshold and want to apply soon:

1. Pay down revolving balances below 30% utilization — fastest single-cycle improvement. If you have a $5,000 card limit and a $4,000 balance (80% utilization), paying down to $1,500 (30%) can add 30–50 points within one statement cycle.
2. Pay statement balance, not minimum — utilization is measured on the statement balance, not your in-month spending. Pay before the statement closes if you can.
3. Don't close old cards — length of credit history accounts for ~15% of the score. Keep old cards open with a small recurring charge.
4. Dispute legitimate errors — duplicate accounts, paid collections still showing as active, fraudulent inquiries. Disputes are free at Equifax + TransUnion and typically resolve in 30 days.
5. Stop new applications — every hard inquiry is 3–5 points temporarily; mortgage rate-shopping in a 14–45 day window counts as one inquiry but other credit products don't.
6. Set up auto-pay — one missed payment can wipe out months of progress. Even if the balance is $0, an auto-pay confirmation is insurance.
7. Become an authorized user on a parent or spouse's long-history card with low utilization — the inherited age + utilization helps.

We see clients lift scores 30–80 points in 60 days using just steps 1–3. If you're 50 points below A-tier and considering a B-tier deal at higher cost, two months of cleanup can save you thousands.

How to actually check your credit

Both bureaus publish free Canadian credit scores:

• Equifax Canada — equifax.ca, free credit report + score
• TransUnion Canada — transunion.ca, free credit report + score
• Borrowell, Credit Karma — third-party views of one or both bureaus, free
• Your bank's app — most major banks now show one bureau's score free

Pull both before applying. The bureaus sometimes disagree, and lenders use the lower of the two as your effective score.

What to do next

1. Pull your score from both bureaus today (free)
2. If 680+: run affordability and talk to a broker about A-tier pre-approval
3. If 600–679: same affordability calc, but plan for B-tier pricing + lender fee
4. If sub-600: assess whether 60 days of credit cleanup can get you above 600 before applying; if not, get private-bridge pricing AND a written rebuild plan from your broker

Credit score is a snapshot of how you've handled credit recently, not a permanent verdict. Most borrowers who land in B or private the first time work back to A-tier within 12–36 months.