Your credit score can make or break your mortgage application. A lot goes into qualifying for a mortgage — income, down payment, debt levels, and employment all matter — but your credit score is the single biggest gatekeeper at most lenders.
Here’s the minimum credit score you need to get approved for a mortgage in Canada in 2026, what counts as “good,” and what your options are if your score is below the cutoff.
Key Points
1. Most Canadian banks require a credit score of 680 or higher for traditional mortgage approval — though scores as low as 620 may qualify for insured mortgages (less than 20% down).
2. Borrowers with bad credit can still get approved through alternative or private mortgage lenders, but at higher rates and stricter terms.
3. Credit score isn’t the only factor — lenders also assess your debt service ratios, income, employment, and down payment.
4. Improving your credit score before applying — even by 30–50 points — can unlock meaningfully better rates and qualify you for more favourable terms.
What Credit Score Is Needed For A Mortgage In Canada In 2026?
Going into 2026, the minimum credit score needed to get approved for a mortgage from a traditional Canadian lender is generally 680. But it’s more accurate to think of it as a range: anywhere between 620 and 680 can qualify, depending on the lender and the type of mortgage you’re seeking. Knowing how to shop for a mortgage effectively can help you find lenders whose credit requirements match your situation.
For context on where most Canadians stand: according to CMHC’s Residential Mortgage Industry Report, the average credit score for new high-ratio insured mortgages in Canada has consistently exceeded 750 in recent years1, meaning most approved borrowers are comfortably above the 680 minimum.
Factors That Affect The Minimum Credit Score Needed For A Mortgage
The exact credit score you need depends on several factors:
- Lender Type. Traditional lenders (banks and credit unions) typically require 680+. Alternative lenders may accept scores as low as 600, but you’ll pay higher interest rates or face stricter terms.
- Mortgage Type. If your mortgage is insured (less than 20% down), the minimum credit score is typically 600 – 620 because CMHC, Sagen, or Canada Guaranty insures the loan against default. If your mortgage is conventional (20%+ down), expect lenders to require 680 or higher.
- Down Payment Size. A larger down payment offsets the lender’s risk and can let you qualify with a lower credit score.
- Debt-To-Income Ratio. High existing debt hurts your approval chances. Lenders assess your ability to manage mortgage payments alongside your existing obligations — a high debt load means you may need a higher credit score to balance the risk.
What Qualifies As A Good Credit Score?
The higher your credit score, the better your chances of approval — and the better the interest rate you’ll qualify for. In Canada, lenders use Equifax and TransUnion scores, which range from 300 to 900. Scores of 660 and above are generally considered “good” and signal that you’re a low-default-risk borrower.
How Your Credit Score Impacts Mortgage Approval
Where your credit score sits on the spectrum directly affects whether you’ll be approved, who will lend to you, and what rate you’ll pay:
| Credit Score Range | Rating | Impact On Mortgage Approval |
|---|---|---|
| 760 – 900 | Excellent | Easy approval with major banks; access to the lowest available rates. |
| 725 – 759 | Very Good | Easy approval; lowest tier of rates and best mortgage features. |
| 660 – 724 | Good | No trouble qualifying with most lenders; standard rates (not always the absolute best). |
| 560 – 659 | Fair | The minimum threshold zone. Traditional banks may decline; rates higher even when approved. |
| 300 – 559 | Poor | High-risk borrower. Likely need to apply through a private mortgage lender; significantly higher rates and fees. |
Can You Get A Mortgage With A Low Credit Score?
Yes — borrowers with bad credit can still get approved for a mortgage, but typically through alternative or private mortgage lenders rather than the big banks. These lenders place less emphasis on your credit score and more weight on:
- Your down payment size
- The home’s value (loan-to-value ratio)
- Your income and employment stability
- Your overall financial profile
Some private lenders have no minimum credit score requirement at all — but they offset the risk through higher rates, fees, and stricter conditions. A cosigner with strong credit can also significantly improve your approval odds and lower your rate, even at a traditional lender.
Things To Consider When Getting A Bad Credit Mortgage
If you plan to apply with bad credit through an alternative lender, expect to encounter:
- Higher Interest Rates. Lenders charge significantly more to offset the risk of lending to lower-credit borrowers. Over the life of a 25-year mortgage, this can add tens of thousands of dollars in extra interest.
- Expensive Fees. Setup fees, broker fees, lender fees, and renewal fees add up quickly and can make the loan less affordable than the rate alone suggests.
- Smaller Loan Amounts. Many bad-credit mortgages cap at lower loan-to-value ratios, meaning you may need a larger down payment to qualify.
- Limited Flexibility. You may face restrictions on prepayment, refinancing, or switching lenders without penalty.
Are There Mortgage Lenders That Don’t Check Credit At All?
Yes — a small subset of private mortgage lenders and Mortgage Investment Corporations (MICs) in Canada will lend without running a credit check, or will treat your credit score as just one minor input alongside other factors. Instead of leaning on your score, these lenders focus on:
- The home’s value and loan-to-value (LTV) ratio — usually capped much lower (50% – 75% LTV) than at a bank
- The size of your down payment — often 35% or more required
- Your income and ability to service the loan
- The marketability of the property if they ever needed to sell it
The trade-off is steep. No-credit-check mortgages typically come with:
- Significantly higher interest rates — often well above what a traditional alternative lender would charge
- Higher upfront fees — origination fees, broker fees, and legal fees can easily add 2% – 4% of the loan amount on top of the rate
- Shorter terms — often 1 to 2 years, with renewal at the lender’s discretion
- Restrictive prepayment terms — limited or no penalty-free prepayment
Should you use one? Only as a last resort. If your credit is the issue, in most cases it’s cheaper over time to spend 6 to 12 months improving your score and then apply with a B lender or traditional alternative lender — the rate and fee savings will far exceed the cost of waiting. No-credit-check mortgages are best reserved for short-term bridge scenarios (you’re rebuilding credit after a recent bankruptcy, or you need to close on a property before your credit fully recovers).
Find The Best Mortgage For Your Needs
| Amount | Rate | Availability | Products | |
 Loans Canada | Varies | Varies | All of Canada | - First mortgage - Refinancing - Renewal - Lender switch - Home equity loans |
 Alpine Credits | $10,000+ | Based on equity | All of Canada except Quebec | - Home equity loans |
 Mortgage Maestro | $10,000+ | 5.19%+ | All of Canada except Quebec | - First mortgage - Refinancing - Renewal - Line of credit (HELOC) - Reverse mortgage |
 Neo Mortage™ | Varies | 5.54%+ | All of Canada except Quebec | - First mortgage - Refinancing - Renewal |
 nesto | $100,000+ | 5.34%+ | All of Canada | - First mortgage - Refinancing - Renewal |
 Homewise | Varies | Varies | BC, AB, MB ON | - First mortgage - Refinancing - Renewal - Lender switch |
How To Improve Your Credit Score Before Applying
Improving your credit score before you apply — even by 30 to 50 points — can move you into a better lender tier and unlock meaningfully better rates. Here are six things that consistently move the needle:
6 Ways To Improve Your Credit Score Before A Mortgage Application
Pay every bill on time and in full
Payment history is the single biggest factor in your credit score. One late payment can drop your score 60 – 110 points.
Keep credit utilization under 30%
Paying credit card balances down from 70% to under 30% utilization can lift your score 20 – 40 points in one billing cycle.
Pay down existing debt
Lower total debt = lower debt service ratios = better mortgage approval odds. Tackle high-interest debt first.
Avoid new credit applications
Each hard credit inquiry can ding your score 5 – 10 points. Hold off on opening new accounts for 6 – 12 months pre-application.
Check your credit report for errors
Up to 20% of Canadian credit reports contain errors. Disputing inaccurate items can lift your score quickly.
Build credit if you have a thin file
If you have limited credit history, a secured credit card or credit-builder product can establish payment history fast.
How long does it take? There’s no fixed timeline for credit improvement. Depending on where you’re starting and what’s dragging your score down, you may see meaningful gains in a few months — or it may take a year or more. The biggest accelerators are paying down revolving balances, fixing errors on your report, and never missing a payment.
Other Mortgage Requirements That Affect Approval
Your credit score isn’t the only thing lenders look at. Before you apply, get familiar with the broader set of mortgage requirements — including the full mortgage application to-do list and the documents you’ll need to provide.
Mortgage Stress Test
Most borrowers must pass the mortgage stress test, which is mandated by OSFI’s B-20 guideline. The test checks whether you could still afford your mortgage payments if interest rates rose. To pass, you must qualify at the higher of:
- Your contract rate + 2%, OR
- The benchmark rate set by OSFI
The stress test applies to both insured and uninsured federally regulated mortgages. Passing it requires either a stronger income, a lower debt load, a higher down payment, or a smaller mortgage than you might otherwise want.
Debt Service Ratios
Lenders also calculate two debt service ratios to make sure you can afford the mortgage:
- Gross Debt Service (GDS) Ratio. Your housing costs (mortgage payment, property taxes, heating, and 50% of condo fees) divided by your gross monthly income. Most lenders want your GDS at or below 39%.
- Total Debt Service (TDS) Ratio. All your monthly debt obligations (housing costs + credit cards, car loans, personal loans, student loans, support payments) divided by your gross monthly income. Most lenders want your TDS at or below 44%.
Mortgage Contract Features
Once you’re approved, the structure of your mortgage matters as much as the rate. Pay close attention to the features you want to see in your mortgage contract — prepayment privileges, portability, assumability, and renewal terms can save (or cost) you tens of thousands over the life of the loan.
What’s Next: Getting Pre-Approved
Once you know your credit score and have your finances in order, the most useful next step is mortgage pre-approval. A mortgage pre-approval tells you exactly how much you can borrow, at what rate, and gives you a rate hold (usually 90 – 120 days) while you shop for a home. Ideally, get pre-approved 60 – 120 days before you plan to make an offer.
Tip: Pre-Approval Uses A Hard Credit Pull
A formal mortgage pre-approval triggers a hard credit inquiry, which can ding your score by a few points temporarily. To minimize the impact, complete all your mortgage pre-approval applications within a 14 – 45 day window — credit bureaus typically treat multiple mortgage inquiries in that period as a single inquiry for scoring purposes.
Bottom Line
If your credit score falls short of your lender’s threshold, your first application may not get approved — but that doesn’t mean a mortgage is out of reach. Improving your credit by even 30 – 50 points before applying can move you into a better lender tier, unlock significantly better rates, and save you tens of thousands of dollars over the life of the loan. And if you can’t wait, alternative and private lenders offer paths forward, just at a higher cost. Either way, knowing exactly where you stand — and what your lender expects — is the first step.
Mortgage Credit Score FAQs
References
- Canada Mortgage and Housing Corporation (CMHC). (2025). Residential Mortgage Industry Report. https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/research-reports/housing-finance/residential-mortgage-industry-report
- Office of the Superintendent of Financial Institutions (OSFI). (2024). Guideline B-20 — Residential Mortgage Underwriting Practices and Procedures. https://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/b20.aspx
Note: Loans Canada does not arrange, underwrite or broker mortgages. We are a simple referral service..
