Published 19 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
Insured mortgages generally need a score from the high 500s to around 600, and most bank lending prefers the high 600s or better, but lenders set their own rules and weigh income, debt ratios and down payment too. Paying revolving balances below about 30% of the limit moves a score fastest.
Credit score is one input among several. Lenders look at income, debt service ratios, the down payment and the property too. Still, the score decides which lenders will look at you and at what rate.
Rough expectations
- Insured mortgages generally require a minimum score in the high 500s to around 600, depending on the insurer and the lender’s own overlay.
- Most bank lending is comfortable from the high 600s upward, with the best pricing usually reserved for stronger profiles.
- Alternative and private lenders will go lower, at a higher rate and with fees.
Treat these as directional. Every lender sets its own policy, and a broker will know current thresholds better than any article.
What else matters as much
- Debt service ratios, with the stress test applied at your rate plus 2% or 5.25%, whichever is higher.
- How long your credit has existed, not just the score.
- Down payment source and whether it is seasoned or gifted.
- Income stability, especially for self-employed applicants.
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What moved the number
Starting from the area baseline for your property type, here’s what each answer added or subtracted.
Market context
Recent local averages for comparison.
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A range is a starting point.
A strategy is what sells.
This model doesn’t know that your neighbour’s identical semi went $80,000 over asking last month, or which two upgrades actually pay back in your area. That conversation is free and takes twenty minutes.
What moves a score quickly
- Pay down revolving balances below roughly 30% of each limit. Utilisation reacts fast.
- Never miss a payment. Payment history is the largest factor.
- Don’t close your oldest card; length of history counts.
- Limit new applications in the months before you apply.
- Check both bureaus and dispute errors. Mistakes are common, and fixing one can move a score more than any tactic.
What does not help
Paying a company to “repair” your credit, closing cards to look tidier, or opening a new loan just to show activity right before an application.
If your score isn’t there yet
- Add a co-signer or co-borrower with stronger credit.
- Increase your down payment.
- Use a broker who knows which alternative lenders fit, and treat it as a one to two year term while you rebuild.
- Wait three to six months of clean history and re-apply. The improvement is often enough.
The takeaway
Fix errors on both bureaus, pay balances down, avoid new applications before you apply, and use a broker if your score sits between lender tiers.
Talk it through with me
Get a first-time buyer plan
Tell me your savings, income range and target area. I will send a realistic price range and next steps.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
What credit score do I need to buy a house in Canada?
Insured mortgages often start in the high 500s to around 600, and most bank lending prefers the high 600s or better, but each lender sets its own rules.
Does checking my own credit hurt my score?
No. Checking your own report is a soft inquiry.
How fast can I improve a score?
Paying down balances can show within a cycle or two; missed payments take much longer to fade.
Can I get a mortgage with bad credit?
Often yes, through alternative lenders at a higher rate, usually as a short-term step.
Sources
- Financial Consumer Agency of Canada — credit reports and scores — what affects a score and how to correct errors
- CMHC — mortgage insurance and qualification
Related reading
- Can You Buy a Home With Bad Credit in Ontario? (2026)
- Mortgage Broker vs Bank in Ontario: Which Should You Use?
- Minimum Down Payment in Ontario 2026: The Exact Amount for Every Price Point
- Buyer Representation Agreement Ontario: Terms to Read Before You Sign
- Joint Tenancy vs Tenants in Common in Ontario: Which Way to Hold Title
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.