What Credit Score Do You Need to Buy a House in Canada?

A credit score of 600 is the minimum for a CMHC-insured high-ratio mortgage in Canada; a score of 680 or higher is generally needed for the best rates on uninsured mortgages from A-lenders. Borrowers in the 550–679 range can still buy through B-lenders, typically at 0.5–2% above prime rates, while private lenders have no fixed minimum but charge 8–14%+ for short-term financing.

Verified news snapshot

• 600 is the minimum credit score for a CMHC-insured mortgage with less than 20% down (Government of Canada / CMHC guidelines).
• 680+ is the typical threshold for the best uninsured mortgage rates from major banks and A-lenders.
• 550–679 borrowers can qualify through B-lenders, usually paying about 0.5–2% above prime.
• Your score is built from: payment history 35%, credit utilization 30%, length of credit history 15%, new inquiries 10%, and credit mix 10% (Financial Consumer Agency of Canada).
• Lenders use your score alongside income, debts and down payment — a great score cannot overcome an unaffordable price, and a weaker score can be offset by a larger down payment.

What credit score do you need for an insured mortgage?

An insured (high-ratio) mortgage is one with less than 20% down, which requires CMHC or equivalent default insurance. The minimum credit score for these mortgages is 600. In practice, scores in the low 600s still get approved, but the rate and terms improve as the score rises. If your score is below 600, most A-lenders will decline the file — your options become B-lenders, alternative documentation, or a larger down payment.

What credit score gets the best mortgage rates?

680 and above is where the best uninsured rates live. At 680+, major banks compete for your file and you qualify for posted and discounted rates without a premium. Between 600 and 679, you can still get an insured mortgage, but expect the rate to be slightly less sharp and the lender's questions to be more thorough. Small score differences in this range can move your rate — which is why cleaning up your credit before applying pays real money.

What are B-lenders and private lenders?

B-lenders are regulated lenders that accept borrowers A-lenders decline — typically scores of 550–679, self-employed borrowers, or unusual income situations. Expect rates roughly 0.5–2% above prime plus possible lender fees. Private lenders (individuals or mortgage investment corporations) have no set score minimum but charge 8–14% or more, usually for terms of one to two years. Private money is a bridge — a way to buy now and refinance into a mainstream mortgage after rebuilding credit — not a long-term plan.

How is your credit score calculated?

Canada's two bureaus, Equifax and TransUnion, score you from 300 to 900 using the same five ingredients. Payment history (35%) is the heavyweight: a single 90-day late payment can cost 60–100+ points. Utilization (30%) is how much of your available credit you use — keep balances under 30% of limits, ideally under 10%. History length (15%) rewards old accounts, so keep your oldest card open. Inquiries (10%) means each hard credit check dings you slightly. Credit mix (10%) favours a blend of revolving and instalment credit used responsibly.

How can you raise your score before applying?

Three moves matter most. Pay everything on time — set up automatic minimum payments on every account so nothing is ever late. Cut utilization — pay down revolving balances to under 30% of limits before you apply; this alone can add dozens of points in a billing cycle or two. Stop applying for new credit — no new cards, no car loans, no financing furniture in the months before your mortgage application; each inquiry and each new account costs points. And pull your own reports from both bureaus first: errors are common, and disputing a wrongly reported late payment is free.

Frequently asked questions

What is the minimum credit score to buy a house in Canada?
600 is the minimum for a CMHC-insured mortgage with less than 20% down. Below that, B-lenders (550–679) or private lenders are the realistic routes.

What credit score do I need for the best mortgage rate?
680 or higher generally unlocks the best uninsured rates from A-lenders. Scores between 600 and 679 still qualify for insured mortgages at slightly less sharp pricing.

Can I get a mortgage with a 550 credit score?
Yes, through B-lenders — typically at 0.5–2% above prime rates. Private lenders have no minimum but charge 8–14%+ for short terms.

What hurts my credit score the most?
Late payments (35% of your score) and high utilization (30%). One serious late payment and maxed-out cards are the two fastest ways to lose points.

How long does it take to improve a credit score?
Utilization improvements can show in one to two billing cycles; recovering from late payments takes months of clean history. Check both bureaus and dispute errors first — that is the fastest win available.

Related reading

https://jaypatelhomes.com/buyers-guide/home-buyers-guide-alberta

https://jaypatelhomes.com/home-sellers-guide-alberta

https://jaypatelhomes.com/mortgage-amortization-calculator-alberta

Know your score? Get your real mortgage options

Send me your score range — I'll tell you which lenders and rates are actually open to you. Free. Call or text Jay Patel at +1 (825) 889-5383, visit jaypatelhomes.com, or DM me on Instagram @jaypatel.albertarealtor. First conversation is free — no pressure, just real numbers.