{"id":17243,"date":"2023-01-12T01:20:17","date_gmt":"2023-01-12T01:20:17","guid":{"rendered":"https:\/\/hypotheques.ca\/blogue\/cote-de-credit-pour-acheter-une-maison\/"},"modified":"2025-09-26T17:54:30","modified_gmt":"2025-09-26T17:54:30","slug":"what-credit-rating-to-buy-a-house","status":"publish","type":"post","link":"https:\/\/hypotheques.ca\/en\/blog\/what-credit-rating-to-buy-a-house\/","title":{"rendered":"What credit rating to buy a house?"},"content":{"rendered":"\t\t
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In Canada, to be sure of getting a mortgage you must have a good\u00a0credit rating. But what\u00a0credit rating\u00a0do you need to buy a home in Canada?<\/p>

What is the credit score?\u00a0<\/h2>

The\u00a0credit score,<\/a> a critical component of your loan application, is a 3-digit score assigned to you by a credit reporting\u00a0agency, such as\u00a0Equifax<\/span>\u00a0or\u00a0Transunion<\/span><\/a>. This credit score is used to assess the likelihood that you will pay your bills on time and meet your obligations.<\/p>

Having a good\u00a0credit rating\u00a0is essential for building the confidence of financial institutions and for your financial security.<\/p>

The credit score determines the bank’s level of risk in accepting or refusing financing.\u00a0<\/p>

Above a credit score of\u00a0680<\/span>, it will generally be possible to obtain the best loan conditions. However, it is possible to obtain financing with a lower score.<\/p>

Banks apply internal criteria when deciding whether to grant or deny a credit application. If accepted, this means that the bank believes the applicant will be able to repay the loan. The credit score, also known as the\u00a0credit rating, determines your ability and reliability to repay your debts.\u00a0<\/p>

What is the minimum credit score for a mortgage in Canada?<\/h2>

In Canada, to be sure of being approved for a mortgage, your\u00a0credit score\u00a0must be close to\u00a0900<\/span>.\u00a0<\/p>

However, you must have a minimum\u00a0credit score\u00a0of\u00a0620<\/span>\u00a0to purchase a home,\u00a0<\/span>and\u00a0ideally 680 or higher<\/span>.\u00a0<\/p>

If your\u00a0credit score\u00a0is below 620<\/span>, we invite you to discuss it with our mortgage brokers who will be able to advise you on how to obtain a mortgage loan.\u00a0<\/p>

\"buy-home-canada\"<\/div><\/figure>

How does credit score affect the application for a mortgage to buy a home?\u00a0<\/h2>

Mortgage Eligibility\u00a0<\/h3>

A\u00a0credit score\u00a0is essential for a mortgage application because lenders analyze your\u00a0credit score\u00a0to determine your eligibility for a\u00a0mortgage.\u00a0<\/p>

Credit scores\u00a0above 680<\/span>\u00a0are considered good\u00a0credit.\u00a0<\/p>

A good credit score allows you to obtain a favorable interest rate<\/h3>

Your\u00a0credit score\u00a0also allows you to take out a mortgage loan at a more advantageous\u00a0interest rate.
When the credit score is low,\u00a0620 and below<\/span>, some banks offer solutions with higher\u00a0interest rates.<\/p>

As a general rule, a high score allows access to good rates for buying a home.\u00a0<\/p>

If you have a\u00a0credit score\u00a0over 680,<\/span> then you should be able to access better interest\u00a0rates.\u00a0<\/p>

Other factors\u00a0<\/h3>

Your\u00a0credit score\u00a0is a critical element in the eligibility of your mortgage application.\u00a0<\/p>

However, lenders also consider other factors besides your\u00a0credit score\u00a0when buying a home, namely:\u00a0<\/p>