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What credit score do I need to qualify for a mortgage with good terms in Canada?

What credit score do I need to qualify for a mortgage with good terms in Canada?

One of the first questions people quietly ask me is:

“Be honest… is my credit score good enough to buy a home in Ottawa?”

Short answer: you can sometimes get a mortgage with a score in the low 600s, but you usually want to be around 680+ to get real choice and strong terms with mainstream lenders.

Let’s break that down.

How credit scores work in Canada (quick version)

In Canada, credit scores generally run from 300 to 900. Higher score, lower risk in the lender’s eyes. A better score doesn’t just help you “get approved” – it usually opens more products and better rates.

If you want a simple, official explainer, this page is worth a skim:
Credit report and score basics – Government of Canada

The real numbers most buyers should know

Here’s how I frame it for my Ottawa clients:

  • 600+ – around the minimum for insured mortgages (less than 20% down) when at least one borrower meets that bar

  • 620–679 – you can often still get a mortgage, but lender options and pricing are more limited

  • 680+ – this is the “good terms” zone with most traditional lenders

  • 720+ – usually considered a very strong file and gives you more flexibility and negotiating power

So when someone asks me,
“What credit score do I need for a mortgage with good terms?”
my honest answer is:

Aim for 680 or higher, and treat 600 as the absolute floor if you’re putting less than 20% down.

Before we apply: check your report

I always have buyers pull and review their credit report before we start locking in a mortgage. You want to catch:

  • Errors (old accounts, wrong late payments)

  • Weird balances that should be lower

  • Accounts you forgot existed

The federal site has a good “get ready” page here:
Preparing to get a mortgage – Government of Canada

Fixing one or two mistakes can bump you into a better bracket.

How to nudge your score up

The basics still matter:

  • Pay everything on time, every time

  • Keep balances well below your limits

  • Don’t apply for a bunch of new credit right before a mortgage

  • Let some older, well‑managed accounts stay open to build history

You don’t need perfection. You need to look reliable.

Questions I answer every week

Can I buy a house with a 600 credit score?
Possibly, yes. But we’ll be more limited on lenders and terms. I’ll show you the cost difference between buying now and doing a credit tune‑up first.

What should I target if I want the best rates and options?
In today’s market, 680+ is the goal; 700+ is where I start to relax about lender choice.

What if my score isn’t there yet?
We build a 3–12 month plan: clean up your report, adjust balances, and time your application so you hit the lender’s sweet spot instead of their minimum.

My take: your score is a tool, not a judgment on you. My job is to use the score you have today as intelligently as possible and, if needed, help you build the version that gets you the mortgage you actually want.

If you tell me your current score range (even just “low 600s / high 600s / 700s”) and your rough down payment, I’ll tell you straight up whether we should buy now or tune things up and attack this a bit smarter.

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