Published 16 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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You can sometimes buy with bad credit in Ontario, but it costs more. For CMHC-insured mortgages, at least one borrower generally needs a credit score of 600 or higher. Below that, or after a recent consumer proposal or bankruptcy, you may need an alternative (B) lender or private mortgage with higher rates and fees and usually a larger down payment. Rebuilding credit for 12 to 24 months can save a lot.
Your options by credit profile
| Profile | Typical lender route | Trade-offs |
|---|---|---|
| Good credit, stable income | Big banks, credit unions, insured mortgages | Best rates |
| Score around 600+, some blemishes | Credit unions, some A lenders with insurance | May need explanations |
| Low score, recent proposal | Alternative (B) lenders | Higher rates, fees, larger down payment |
| Serious credit issues | Private lenders, short terms | Much higher cost; plan an exit |
Consumer proposals and bankruptcy
Lenders usually look for a completed or discharged proposal or bankruptcy and re-established credit, often with new accounts paid on time. Timelines vary by lender and insurer.
What can you afford?
Enter conservative numbers; higher rates reduce buying power.
Free tool — what can you actually afford here?
A 12-month plan to qualify
- Pull your credit reports from Equifax and TransUnion and fix errors.
- Pay every bill on time and keep card balances low.
- Keep a secured or low-limit card active.
- Save a larger down payment; see the minimum down payment rules.
- Talk to a mortgage broker early.
Where I fit
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty. I help buyers across Toronto and the GTA set a realistic budget and connect them with mortgage professionals who handle credit-challenged files, so the home search matches what you can actually close.
The takeaway
Bad credit does not always rule out buying in Ontario, but it raises costs. Insured mortgages generally need a 600+ score for at least one borrower; below that, B and private lenders cost more. A year of credit rebuilding and savings often pays for itself.
Talk it through with me
Credit challenges and want to buy?
Tell me your situation privately. I will outline a realistic path and introduce a mortgage professional if helpful.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
Can I buy a house with bad credit in Ontario?
Sometimes, usually through credit unions, B lenders or private lenders at higher cost, often with a larger down payment.
What credit score do I need for a mortgage in Canada?
For CMHC-insured mortgages, at least one borrower generally needs a score of 600 or higher. Lenders set their own requirements.
Can I get a mortgage after a consumer proposal?
Often after it is completed and you have re-established credit. Requirements vary by lender.
What is a B lender?
An alternative lender with more flexible criteria than major banks, usually at higher rates and fees.
Are private mortgages a good idea?
They can bridge a short period but are expensive. Have a clear plan to refinance.
How can I improve my credit to buy a home?
Fix report errors, pay on time, keep balances low and maintain active credit for 12 to 24 months.
Sources
- Financial Consumer Agency of Canada — down payments and mortgage insurance — minimum down payment rules and insured mortgage limits. Accessed 16 September 2026.
- Financial Consumer Agency of Canada — mortgages — consumer guidance on qualifying, down payments and mortgage insurance. Accessed 16 September 2026.
- Financial Consumer Agency of Canada — credit reports and scores — how to get and improve your credit report and score. Accessed 16 September 2026.
Related reading
- Self-employed mortgages
- What a pre-approval guarantees
- Best realtor for first-time buyers
- How much home can you afford?
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, with deep local knowledge of the west end. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from RECO or Ontario legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.