Credit Score Needed to Buy a House in Canada in 2027

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — CMHC’s 600 minimum, what lenders treat as a good score, and how to check and raise your credit before buying a home in 2027.

This guide is for anyone in Canada, and GTA buyers in particular, who wants to know what credit score it takes to buy a home in 2027. You will get the one official minimum that exists, how lenders read the rest of the scale, how to check your score for free, and what to fix before you apply.

What credit score do you need to buy a house in Canada in 2027?

The only published minimum I could verify is CMHC’s: for a CMHC-insured mortgage, at least one borrower (or the guarantor) must have a credit score of 600 or higher. An insured mortgage is the kind you get when you put down less than 20%. CMHC is the federal housing agency that insures many of these loans.

Above that floor, there is no single national number. Each bank, credit union and mortgage lender sets its own credit policy. Equifax Canada says that lenders generally see scores of 660 and up as acceptable or lower-risk, and that people below 660 may be less likely to get better terms. So a practical way to think about 2027 is:

• Below 600: an insured mortgage through CMHC is off the table for that borrower. You need a co-borrower who qualifies, a larger down payment, or a lender that works outside the insured rules.
• 600 to 659: you can meet CMHC’s floor, but you may see fewer lenders and less attractive terms.
• 660 and up: Equifax’s “good” range and above, where most mainstream lenders are comfortable.

The score is never the only test. Your income, your debts, your down payment and the property all count, and in 2027 the stress test makes the debt side matter more than it did when rates were lower.

What is the minimum credit score for a CMHC-insured mortgage?

CMHC’s purchase product rules set the floor at 600 for at least one borrower or guarantor. That wording matters for couples. If one partner has a 720 score and the other has a 580, the file can still meet CMHC’s floor, although the lender will still look at both people’s credit history.

CMHC also says it may accept other ways to show creditworthiness for borrowers who have no credit history. For newcomers without a Canadian credit report, it lists an international credit report, a reference letter from a bank in the borrower’s home country, or other methods. If that is you, read my guide to buying with no Canadian credit history.

The same CMHC page caps the gross debt service (GDS) ratio at 39% and the total debt service (TDS) ratio at 44%. GDS is your housing costs as a share of gross income. TDS adds every other debt payment. These limits are where a weak credit profile usually shows up, because card balances and car loans push TDS up.

What counts as a good credit score in Canada?

Canadian credit scores usually run from 300 to 900, according to the Financial Consumer Agency of Canada (FCAC). The two main credit bureaus are Equifax and TransUnion. Here is how Equifax Canada describes the ranges:

Source: Equifax Canada, “What is a good credit score”; CMHC purchase product page. The right-hand column is my plain-English reading, not a lender rule.

The FCAC notes that bureaus and lenders use different scoring formulas and do not share the details, so your Equifax and TransUnion scores can differ, and a lender’s number may not match the one in your banking app. Treat any app score as a guide.

Does your credit score change your mortgage rate?

It can. Lenders price risk, and credit history is one of the main ways they judge it. Equifax notes that people below 660 may be less likely to get better loan terms. But no lender publishes a table that says “score X gets rate Y”, and I will not invent one.

What I can tell you is what advertised rates look like as of 10 November 2026. RBC’s posted five-year fixed rate was 6.19%, while its special offer for a five-year fixed was 5.14% and 4.84% for high-ratio (insured) buyers. The gap between posted and special rates is where a strong application earns its discount. A borrower with a thin or damaged file is more likely to be offered something closer to posted, or to be sent to an alternative lender at a higher rate.

Why does credit matter more when rates are higher in 2027?

Federally regulated lenders must qualify you at the greater of 5.25% or your contract rate plus 2 points. That is the minimum qualifying rate set by OSFI, the federal bank regulator. With five-year fixed specials around 5.14% in November 2026, many buyers are now being tested at about 7.14%.

Here is why that matters for credit. On a $600,000 mortgage over 25 years, my arithmetic gives a payment of about $3,538 a month at 5.14%, but about $4,254 a month at the 7.14% qualifying rate. That higher number goes into your GDS and TDS ratios. Every dollar of card or car payment eats into the 44% TDS limit at the same time. A $500 car payment can cost you far more borrowing power than you expect.

So in 2027, paying down revolving debt does two jobs at once: it can lift your score and it frees up room in your debt ratios. My guide to how the mortgage stress test works walks through the ratios in more detail.

How do I check my credit score for free in Ontario?

The FCAC says you can get your credit report free from both Equifax and TransUnion, online, by mail or by phone. Scores are a little different:

• Equifax gives a free credit score in every province and territory.
• TransUnion includes a free score with your consumer disclosure only if you live in Ontario or Quebec.
• Some banks also show a free score in their apps.

Checking your own report or score does not lower it, the FCAC says. The bureaus update your file at least once a month. Pull both reports three to six months before you plan to buy, so you have time to fix mistakes.

How long do late payments and bankruptcies stay on your credit report?

Old problems fade, but on a schedule. The FCAC lists these periods:

Source: Financial Consumer Agency of Canada, “How long information stays on your credit report.” Confirm current periods with each bureau.

If you are still inside one of these windows, it does not automatically mean no. It usually means more questions, a larger down payment or a different lender. My guide to buying with bad credit in Ontario covers those routes.

How can I raise my credit score before applying for a mortgage?

The FCAC calls payment history the most important part of your score. Its practical advice, in plain terms:

1. Pay every bill on time. If you cannot pay in full, pay at least the minimum, and call the lender early if trouble is coming.
2. Use less than 30% of your total credit limit. On a $5,000 limit, keep the balance under $1,500, even if you pay in full each month.
3. Keep old accounts open. Closing an older card can shorten your history and hurt your score.
4. Space out new credit. Many applications close together can look like you urgently need credit.
5. Check for errors. Read both reports line by line and dispute anything wrong with the bureau.

One useful rule for 2027 shoppers: the FCAC says that if you get mortgage quotes from different lenders within a two-week period, the bureaus treat them as one inquiry. Do your rate shopping in a tight window instead of spreading it over months.

What if my credit score is below 600?

You still have options, but each has a cost:

• Add a co-borrower or guarantor whose score meets the floor. CMHC’s rule needs only one qualifying borrower or guarantor. Understand the legal risk first; see co-signing a mortgage in Ontario.
• Save 20% or more. With 20% down, the mortgage does not need default insurance, so CMHC’s 600 floor does not apply. The lender’s own credit rules still do.
• Use an alternative lender for one term while you rebuild, then move to a mainstream lender at renewal. Expect a higher rate and fees.
• Wait and rebuild. Several months of on-time payments and lower balances can move a score more than people expect.

What to do next

1. Pull your free Equifax and TransUnion reports today and note both scores.
2. Dispute any errors with the bureau that shows them.
3. Pay revolving balances below 30% of each limit and set every bill to autopay.
4. Avoid new credit for at least six months before you apply and until you close.
5. Get pre-approved, then compare lenders within a two-week window so the inquiries count as one.

Frequently asked questions

Sources

• CMHC — CMHC Purchase: creditworthiness (minimum score 600), GDS 39% and TDS 44%
• Financial Consumer Agency of Canada — Credit report and score basics
• Financial Consumer Agency of Canada — Getting your credit report and credit score
• Financial Consumer Agency of Canada — How long information stays on your credit report
• Financial Consumer Agency of Canada — Improving your credit score
• Equifax Canada — What is a good credit score?
• OSFI — Minimum qualifying rate for uninsured mortgages
• RBC Royal Bank — Current mortgage rates (viewed 10 November 2026)

Related reading

• Biggest Condo Developers in Toronto: Track Records Buyers Should Check
• Is It a Good Idea to Buy a Condo in Toronto in 2027?
• Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
• Can You Buy a House With No Down Payment in Ontario?