Credit Score Impact in Ontario
Your credit score plays a crucial role in determining your mortgage rate and approval chances when buying property in Ontario.
760+
ExcellentBest rates available, widest lender options
700-759
GoodCompetitive rates, good lender options
650-699
FairHigher rates, limited lender options
Below 650
PoorSignificantly higher rates, very limited options
Minimum Requirements
Your credit score is one of the most important factors lenders consider when you're applying for a mortgage. In Ontario, understanding the credit score ranges and what they mean can help you prepare for the home-buying process and potentially save you thousands of dollars in interest over the life of your mortgage.
In Canada, the minimum credit score required for an insured mortgage (less than 20% down payment) is typically 600. However, many lenders prefer a score of 680+ for their best rates.
Credit Bureaus
Lenders in Ontario check your score with Canada's two main credit bureaus: Equifax and TransUnion. It's a good idea to check both reports annually for accuracy.
Lender Impact
- A-Lenders (Banks): Require 680+ for best rates.
- B-Lenders: Flexible with scores below 600, but higher rates.
- Private Lenders: Focus on equity over credit score.
Improving Your Credit Score
Key strategies to boost your score before applying for a mortgage:
- •Pay all bills on time - payment history is the most important factor
- •Keep credit utilization below 30% of your available credit
- •Avoid applying for new credit in the 6 months before your mortgage application
- •Review your credit report for errors and dispute any inaccuracies
- •Maintain a mix of credit types (credit cards, loans) with a long history