What Credit Score Do You Need to Buy a House in Canada? (2025 Guide)

Buying a home is a major financial milestone—and one of the first things lenders consider is your credit score. Whether you're a first-time homebuyer or a repeat buyer, your credit score plays a crucial role in your ability to qualify for a mortgage and the interest rate you'll receive.

So, what credit score do you need to buy a house in Canada in 2025? Let’s break it down.

🔢 What Is a Credit Score?

A credit score is a three-digit number that represents your creditworthiness. It’s based on your credit history, including:

• Payment history

• Debt utilization

• Length of credit history

• Credit mix

• Recent credit inquiries

In Canada, credit scores range from 300 to 900. The higher your score, the more likely you are to be approved for a mortgage with favorable terms.

✅ Minimum Credit Score to Buy a House in Canada (2025)

Conventional Mortgage (20% Down Payment or More)

• Minimum Credit Score: 620–680

• Conventional lenders like big banks prefer scores of 680 or higher for easy approval. Some lenders may accept scores as low as 620, but you may face stricter income or debt requirements.

Insured Mortgage (Less Than 20% Down Payment)

• Minimum Credit Score: 600 (as per CMHC guidelines)

• If your down payment is less than 20%, you'll need mortgage insurance from CMHC, Sagen, or Canada Guaranty. Most insurers require a minimum score of 600, but some lenders may ask for 650+ to offset risk.

Alternative or B-Lender Mortgages

• Minimum Credit Score: 500–599

• These are for buyers with poor credit, self-employment income, or unique financial situations. Rates are higher and terms more restrictive, but approval is still possible.

📊 Credit Score Tiers and What They Mean for Homebuyers

🏡 How Does Your Credit Score Affect Your Mortgage?

🔹 Interest Rates

Higher scores = lower interest rates. Over the life of your mortgage, this can save you tens of thousands of dollars.

🔹 Loan Approval

A low credit score doesn’t necessarily mean you can’t buy a home—but it can limit your lender options and require a larger down payment or higher income.

🔹 Required Documentation

Lower credit scores often mean more documentation and stricter scrutiny of your income, debts, and assets.

🛠️ How to Improve Your Credit Score Before Buying a Home

1. Pay bills on time – Your payment history makes up 35% of your score.

2. Keep credit utilization low – Aim to use less than 30% of your available credit.

3. Avoid applying for new credit – Too many inquiries can lower your score.

4. Check for errors on your credit report – Dispute inaccuracies.

5. Maintain old accounts – Length of credit history also matters.

👉 Tip: Use free tools like Borrowell or Credit Karma Canada to monitor your score.

💬 What If You Don't Have a Credit Score?

If you’re new to Canada or have never used credit, lenders may assess your creditworthiness using alternative documentation, such as:

• Rent payment history

• Utility bills

• Employment verification

In these cases, working with a mortgage broker can be extremely helpful to find flexible lenders.

📅 Credit Score Requirements in 2025: What’s Changing?

In 2025, credit score requirements are becoming even more significant due to:

• Higher borrowing costs due to interest rate volatility

• Tighter lending rules from federally regulated lenders

• Increased housing prices, making strong credit more critical to qualify for higher loan amounts

🧠 Expert Tip: It’s Not Just About Credit Score

Lenders also consider:

• Your debt-to-income (DTI) ratio

• Your employment history

• Your down payment size

• The type of property you're buying

A great credit score won't help if your income doesn't support the mortgage amount you’re requesting.

🏠 Ready to Start House Hunting?

Whether you're pre-approved or just getting your finances in order, Ana Bastas Realty is here to guide you every step of the way.

• ✅ We connect you with trusted mortgage specialists

• ✅ We help you understand what homes fit your approval range

• ✅ We advocate for you to get the best deal possible

📞 Call us today at 647.938.8814 or visit www.anabastas.ca to start your home journey with confidence.

Final Thoughts

Your credit score is more than just a number—it’s the gateway to homeownership. By understanding where you stand and how to improve, you’ll be better prepared to buy your dream home in Canada.

Whether you're looking to buy in Halton Hills, Oakville, Burlington, Mississauga, or Hamilton, having the right credit profile makes all the difference.