What Is a Good Credit Score to Buy a House?

What lenders actually look at on your credit report

• Credit score (Beacon/FICO): Equifax and TransUnion both report; lenders typically use one or both, underwriting to the lower score.
• Payment history (35% of score): on-time payments matter more than the absolute score. A single 30-day-late on a credit card can drop a 760 score to 700.
• Credit utilization (30% of score): high balances on revolving credit hurt scores quickly. Stay below 30% of limit, ideally under 10% the month before mortgage application.
• Length of credit history (15% of score): older trade lines help. Don’t close your oldest credit card.
• Credit mix (10% of score): a mix of revolving (cards, lines of credit) and installment (auto loans, student loans) is mildly helpful.
• Recent inquiries (10% of score): too many hard inquiries in a short window can drop your score 5–20 points temporarily.

Score thresholds and rate impact in 2026

Above 720, you qualify for the best advertised rates from major banks and have full flexibility on rental and second-home financing. From 680–719 you’re still in prime territory but may not get every promotional rate — the BNS / TD / RBC / CIBC / BMO posted promotional rates often require 720+. From 600–679 you’re looking at credit-union and monoline lenders (First National, MCAP, RFA, Equitable Bank), often with insurer-backed deals at slightly higher rates.

Below 600 you’re in B-lender or private space — rates can be 1.5–3+ percentage points higher than prime, broker fees of 1–2% of mortgage apply, and you’ll typically need 20–35% down. The strategy in B-lender space is usually to refinance into a prime mortgage as your credit recovers, often within 12–24 months.

How to improve your credit score before buying

1. Pay down revolving credit balances below 30% of limit, ideally under 10% the month before you apply. This is the fastest single improvement — utilization updates monthly.
2. Pay every bill on time — set up auto-pay for at least the minimum on every account if you’re prone to forgetting.
3. Don’t apply for new credit in the 6–12 months before mortgage application. Each hard inquiry can drop you 5–20 points temporarily.
4. Don’t close old accounts — they help length-of-history and total available credit, both of which support your score.
5. Pull your report and dispute any errors at Equifax and TransUnion. Errors are common: wrong addresses, accounts that aren’t yours, paid-off items still showing as outstanding.
6. Pay down high-interest debt aggressively in the 90 days before application — it improves both score and TDS ratio simultaneously.

What else lenders evaluate beyond credit score

Credit score is one input. Lenders also look at gross debt service ratio (GDS — housing costs as a percentage of gross income, target under 35%), total debt service ratio (TDS — all debt service as a percentage of gross income, target under 42%), down payment source (own savings, gifted, RRSP withdrawal, borrowed), employment stability (length, income type, probation), and — since 2018 — the federal mortgage stress test, which qualifies you at the higher of your contract rate plus 2% or the published benchmark rate (currently around 5.25%).

A great credit score with weak income still won’t qualify you for the home you want. Conversely, strong income with a 670 score is often a better lending profile than 800 with no documented income (self-employed without two years of T1 generals, for example). The lender’s job is to assess risk holistically; the score is a starting point, not the verdict.

Co-applicants, co-signers, and joint applications

If you’re buying with a partner, both credit reports are pulled and underwritten. The lower of the two scores generally controls pricing, even if the higher-income spouse drives qualification. A partner with a 580 score effectively pulls a couple’s rate eligibility down even if the other partner is at 780. Strategies: postpone joint application until both scores improve, structure ownership and financing to one borrower (with the other contributing down payment but not on the mortgage), or use a co-signer with a strong score to lift the application.

Frequently Asked Questions

Will checking my own credit hurt my score?

No. Pulling your own credit through Equifax or TransUnion (or via a free service like Credit Karma or Borrowell) is a soft inquiry and doesn’t affect your score. Only lender-initiated hard inquiries can affect your score temporarily.

Can I get a mortgage with bad credit in Canada?

Often yes through B-lenders or private lenders, with higher rates, larger down payments (20–35%), and broker fees of 1–2%. Plan to refinance into a prime mortgage as your credit recovers — typically within 12–24 months of consistent payment history.

Does my spouse’s credit count if we apply jointly?

Yes if you’re both on the application. The lower of the two scores generally controls pricing, even if the higher-income spouse drives qualification. Some couples structure the mortgage on one borrower’s credit alone if there’s a meaningful gap.

How long does it take to improve a credit score?

Utilization changes can show up within 30 days of paying down balances. Disputed errors take 30–60 days to clear. Recovering from a missed payment takes 6–12 months. Building credit from very thin or very damaged takes 18–24 months of consistent on-time payments.