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

Your credit score is one of the first things a lender checks when you apply for a mortgage — but it's not the only thing, and there's no single magic number. This guide explains the credit score ranges Canadian lenders look for, why a higher score saves you real money, and what your options are if your credit isn't perfect.

Key takeaways

• There's no legally fixed minimum, but most prime lenders want to see a credit score around 680 or higher.
• A strong score doesn't just help you qualify — it can earn you a lower interest rate.
• Lenders look at far more than your score: income, debt ratios, down payment and job stability all matter.
• Your debt service ratios (aim for GDS ≤ 39% and TDS ≤ 44%) often matter as much as your score.
• Lower credit isn't a dead end — alternative lenders and a bigger down payment can still get you approved.

Is there a minimum credit score?

There is no law setting a single minimum credit score to buy a home in Canada. Each lender sets its own threshold. That said, the major banks and prime lenders generally want to see a score of around 680 or higher for their best rates and easiest approvals. Scores below that don't make a mortgage impossible — they just narrow your options.

Canadian credit scores range from 300 to 900

The higher the number, the lower the risk you represent to a lender. Most Canadians fall somewhere in the 600s to 700s. A score in the 700s is considered very good.

How your score affects your rate

Qualifying is only half the story. A higher score signals lower risk, which can earn you a lower interest rate — and even a small rate difference adds up to thousands of dollars over the life of a mortgage. Treat your credit score as a tool for getting a better deal, not just a pass/fail gate.

Even if your score qualifies you today, improving it before you apply can lower your rate. The most reliable way: pay every bill on time and keep your credit card balances well below their limits.

What lenders look at besides your score

A great credit score won't carry a weak application on its own. Lenders assess your whole financial picture:

• Income and job stability — steady, provable income reassures lenders.
• Debt service ratios — your housing and total debt costs as a share of income.
• Down payment — a larger one reduces the lender's risk.
• The stress test — you must qualify at a higher rate than your actual contract rate.

Know your debt ratios

Lenders aim for a Gross Debt Service ratio (housing costs ÷ gross income) of 39% or less and a Total Debt Service ratio (all debts ÷ gross income) of 44% or less. Learn how the math works in our guide to the mortgage stress test.

Buying with weaker credit

A lower score doesn't have to end your home-buying plans. Options include working with a mortgage broker who knows alternative ("B") lenders, putting down a larger down payment to offset the risk, or taking 6–12 months to rebuild your credit first.

1. Pull your credit report and fix any errors.
2. Pay every bill on time — payment history is the biggest factor.
3. Lower your credit card balances to under 30% of their limits.
4. Avoid applying for new credit right before a mortgage.
5. Talk to a broker about lenders that suit your profile.

For a deeper look at the lower-score scenario, see buying a house with bad credit in Canada.

How HOMEH helps

Whatever your score, the smartest first move is to understand your numbers before you shop. HOMEH connects you with mortgage professionals and offers free calculators to map out affordability, down payment and monthly costs. New to the process? Start with the first-time home buyer guide for Ontario and how mortgages work in Canada.

Buy with HOMEH and get cashback

On top of a competitive mortgage, eligible HOMEH buyers receive the industry's highest Cashback Rebate — real money back in your pocket at closing. See if you qualify at HOMEH cashback.

When you're ready, explore your mortgage options and get matched with a broker at HOMEH mortgages.