Credit Guidelines for Purchasing a Home

In order to qualify for mortgage financing you need to have an established credit history and credit score at Equifax or Trans Union credit reporting agencies in Canada.  Lenders use this information to determine how likely you are to repay your mortgage loan.

In Canada, if you are putting less than a 20% down payment on a home, you will need a minimum credit score of 600 (there are some exceptions to this rule, but 600 is the general guideline).  In addition to your credit score, you will need a minimum of 12 months credit history reporting on your credit bureau.

Exceptions to this can be made under special programs for new immigrants, where alternate sources of credit history can help qualify the applicant.

If you are working with an Accredited Mortgage Professional, they will “pull” your credit bureau and determine if you have met the minimum credit requirements for a mortgage loan.  Or, you can order a free credit report at or  If you have a long credit history and a credit score above 680 it is generally deemed to be excellent credit and you may qualify for the best rates and terms.

If you have no credit history, it is important to start building one by, for example, applying for a credit card with good interest rates and terms.  Be sure to pay the minimum payment on time, every time.  If you have bad credit, lenders might not want to give you a mortgage loan until you care re-establish a good history by making debt payments regularly and on time.  Lenders will require any unpaid collections to be settled or paid prior to mortgage financing.       

For more information about credit scores or about how you can get pre-approved for a mortgage, contact an Accredited Mortgage Professional at VERICO One Link Mortgage & Financial today.