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What’s the Minimum Credit Score You Need for a Mortgage in Canada? (2025 Update)
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• Why Credit Scores Matter When Applying for a Mortgage
• What Is the Minimum Credit Score for a Mortgage in 2025?
• A Lenders vs. B Lenders vs. Private Lenders: Who Accepts What?
• CMHC-Insured Mortgages and Their Credit Score Rules
• What If You’re a New Immigrant or Self-Employed?
• Real-Life Story: How Meena Got Her Mortgage at 610
• How to Improve Your Credit Score Before Applying
• Final Advice from a Mortgage Expert
You’ve found a dream home. You’re ready to apply for a mortgage. But then comes the big question: **Is your credit score good enough?**
In Canada, your credit score is one of the most important numbers when it comes to getting approved for a mortgage. It helps lenders decide if you’re financially reliable — and what kind of interest rate you deserve.
This guide will walk you through the minimum credit score requirements for different types of mortgages in 2025, how to improve your score if needed, and what to expect if your credit isn’t perfect.
Why Credit Scores Matter When Applying for a Mortgage
Lenders use your credit score as a snapshot of your financial behaviour. It tells them how likely you are to repay your mortgage on time.
In Canada, credit scores range from **300 to 900**. The higher your score, the better your chances of getting a low-interest mortgage. But if your score is on the lower side, you may be charged a higher rate or need to work with a more flexible lender.
What Is the Minimum Credit Score for a Mortgage in 2025?
In 2025, the general credit score expectations for mortgage approval in Canada are:
– **A Lenders (major banks)** usually require **at least 680**.
– **B Lenders (alternative lenders)** may accept scores as low as **600–640**.
– **Private Lenders** might work with scores **below 600**, but rates will be higher.
🏦 Mortgage Lender Comparison by Credit Score (2025)
Wondering what rate you might get based on your credit score? Here’s a 2025 breakdown of how different lenders price their offers:
| Lender Type | Credit Score Range | Typical Interest Rate (5-Yr Fixed) | Ideal Borrower |
|---|---|---|---|
| 🏦 Big Bank (A Lender) | 700+ | 4.99% – 5.39% | Salaried, low debt, strong income |
| 🧑💼 Mortgage Broker (A/B Mix) | 640–750+ | 5.09% – 6.09% | Flexible profiles, self-employed, rate shoppers |
| 🏦 B Lender (Alt-A) | 580–679 | 6.49% – 8.00% | Credit issues, new to Canada, high debt ratio |
| 🏚️ Private/Hard Money Lender | Any score | 8.99% – 12.00%+ | Urgent deals, rejected by banks, short-term fix |
💡 Tip: Even a 0.50% difference in your rate can mean tens of thousands saved over your mortgage term.
A Lenders vs. B Lenders vs. Private Lenders: Who Accepts What?
Let’s break it down:
**A Lenders** — These are the big banks and credit unions. They want squeaky clean credit, stable income, and low debt. They offer the best rates but aren’t very flexible.
**B Lenders** — These lenders fill the gap for people who don’t meet A lender rules. If you have a decent down payment, steady income, but bruised credit (say 620), B lenders might approve you.
**Private Lenders** — These are lenders who care more about your property than your credit score. They’re usually a short-term solution, with higher fees and interest.
CMHC-Insured Mortgages and Their Credit Score Rules
If your down payment is less than 20%, you’ll need mortgage insurance from CMHC (or Sagen/Canada Guaranty). These insurers usually require a **minimum credit score of 680** from at least one borrower.
If you fall below this score, your options shrink. You’ll either need to increase your down payment, find a B lender, or wait and improve your score first.
🔍 CMHC-Insured vs Uninsured Mortgage: Credit Score Rules
Whether you’re putting less than 20% down or buying a higher-priced home, your credit score affects which mortgage you qualify for.
🏠 CMHC-Insured Mortgage
- Min Credit Score: 680 (for at least one borrower)
- Down Payment: < 20%
- Max Amortization: 25 years
- Insurance Required: Yes – CMHC premium applies
🏢 Uninsured (Conventional) Mortgage
- Min Credit Score: Typically 600–640+
- Down Payment: ≥ 20%
- Max Amortization: Up to 30 years
- Insurance Required: No – lender takes on more risk
💡 Tip: CMHC rules are stricter, but offer access to lower rates for buyers with strong credit and smaller down payments.
What If You’re a New Immigrant or Self-Employed?
If you’re new to Canada, you might not have an established credit history — but some lenders will accept foreign credit reports, rent payment records, or utility bills as proof of reliability.
Self-employed applicants often face extra scrutiny too. Even with a good credit score, lenders want to see at least 2 years of steady business income.
📄 Alternative Documents to Prove Creditworthiness
Don’t have a strong credit score? Lenders may still approve you based on these supporting documents:
✅ Rental History
12+ months of consistent rent payments via bank statements or landlord letter.
✅ Utility Bill Payments
Hydro, internet, gas — paid on time over the past 12 months.
✅ Cell Phone or Internet Bills
Consistent payments to major providers help build credit trust.
✅ Bank Account Statements
Demonstrating stable deposits and no overdrafts.
✅ Employment Letters
Signed, dated letter confirming income, job status, and tenure.
✅ International Credit Report
If you’re new to Canada, lenders may request a report from your home country.
💡 These documents help **build your mortgage file** when a traditional credit score isn’t enough.
Real-Life Story: How Meena Got Her Mortgage at 610
Meena had a credit score of **610** when she started looking for her first home in Surrey, BC. She was working full-time but had a high credit card balance.
She got turned down by two big banks — but her broker found a B lender willing to approve her with a 20% down payment and a slightly higher rate.
She paid off her card, stuck with the lender for a year, and refinanced later at a lower rate once her score crossed 680.
📈 Meena’s Credit Comeback & Mortgage Switch Journey
Here’s how Meena went from a high-interest loan to a much better mortgage in just 18 months.
🗓️ Jan 2023
Credit Score: 590 — Meena takes a high-interest mortgage with a private lender (9.25%).
Credit Score: 590 — Meena takes a high-interest mortgage with a private lender (9.25%).
🧾 Apr 2023
Starts paying off credit card debt and sets up auto-pay on all bills. Score begins to improve.
Starts paying off credit card debt and sets up auto-pay on all bills. Score begins to improve.
📈 Oct 2023
Credit Score: 665 — Receives offer from a B lender at 6.79%, but decides to wait and keep improving.
Credit Score: 665 — Receives offer from a B lender at 6.79%, but decides to wait and keep improving.
💳 June 2024
Score crosses 700 — qualifies for a 5.19% fixed-rate mortgage with a top A lender via a broker.
Score crosses 700 — qualifies for a 5.19% fixed-rate mortgage with a top A lender via a broker.
🔁 July 2024
Switches out of private mortgage, saving $425/month in interest — total savings over 5 years: $25,500.
Switches out of private mortgage, saving $425/month in interest — total savings over 5 years: $25,500.
💡 Just like Meena, improving your credit can unlock better mortgage deals — even if you’ve already bought your home.
How to Improve Your Credit Score Before Applying
If your score is below 680, don’t panic — you can improve it with some planning. Here’s how:
– **Pay bills on time** — even your phone bill affects your score.
– **Lower your credit utilization** — ideally, use less than 30% of your credit limit.
– **Avoid new credit inquiries** — don’t apply for multiple loans or cards before applying.
– **Check your credit report** — make sure there are no errors dragging you down.
Improving your score even by 30–40 points could save you thousands over the life of your mortgage.
Final Advice from a Mortgage Expert
