Credit scores in Canada range from 300 to 900. Many prime lenders look for scores in the mid-600s or higher, although each lender sets its own rules. If your score is lower, you still have paths to homeownership, but it pays to understand the trade-offs.
Where you may stand
| Situation | What it often means |
|---|---|
| Score in the mid-600s or higher, stable income | May qualify with banks, credit unions and monolines |
| Score around the low-to-mid 600s or with recent issues | Some prime lenders may still consider it, and alternative lenders are an option |
| Score below that, or recent bankruptcy or consumer proposal | Usually alternative or private lenders, with larger down payments |
These are general patterns, not guarantees. Lenders also look at your income, debts, down payment and the property.
What alternative lenders usually want
- A larger down payment, commonly 20% or more
- Proof that income is stable
- A clear explanation of past credit problems
- A plan to move to a prime lender later
Learn more in our guide to private and alternative lenders.
How to improve your credit before applying
- Order your credit reports from Equifax and TransUnion and check for errors.
- Pay all bills on time, every time. Payment history is the biggest factor.
- Keep credit card balances well below your limits.
- Avoid opening new credit before applying.
- Do not close your oldest accounts, since account age helps.
- Talk to a broker early, so you know how long it might take to qualify with a prime lender.
More tips: improving your credit score before a mortgage.
Frequently asked questions
What credit score do I need for a mortgage in Canada?
It depends on the lender. Many prime lenders look for scores around 600 to 680 or higher, while alternative lenders may consider lower scores.
Can I get a mortgage after a consumer proposal or bankruptcy?
Often yes, after a waiting period and with a larger down payment, usually through an alternative lender. A broker can explain your options.
Should I wait and rebuild credit first?
If you can, it may reduce your cost significantly. If you cannot wait, an alternative mortgage can be a stepping stone, provided you have a plan to refinance later.
Find out what mortgage options fit your credit profile
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