How Your Credit Score Affects You
Your credit score isn't just a number a bank glances at — it's one of the biggest levers in what your mortgage actually costs you over 25 years.
What lenders are actually looking at
In Canada, most lenders want to see a credit score of at least 680 for the best conventional rates. Scores in the 600–679 range aren't a dealbreaker, but you'll likely be offered a higher interest rate to offset the lender's risk. Below 600, your options narrow to B-lenders or alternative financing, usually at a meaningfully higher cost.
Why a small score difference matters more than it sounds
The gap between a 750 score and a 650 score can mean a difference of half a percentage point or more on your mortgage rate. On a $500,000 mortgage over 25 years, half a point in interest adds up to tens of thousands of dollars over the life of the loan.
What actually moves your score
Payment history is the biggest factor - pay everything on time, every time. Keep credit utilization below 30% of your limit. Don't close your oldest credit card before applying. Avoid applying for new credit in the 6 months before house-hunting. A healthy mix of credit types helps.
If you're planning to buy in the next 6-12 months
Pull your credit report now from Equifax and TransUnion, not the week before you apply. Errors are common and disputing them takes time.
Disclaimer: This is general information, not credit or financial advice specific to your situation. For a personalized assessment, talk to a mortgage broker or your bank before making financial decisions.
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