Credit Score

Understand how credit scores affect Canadian mortgage approval, what factors influence your score, and how to improve it before buying a home.

Credit Score

May 22, 2025


What is a Credit Score?

A credit score is a numerical rating that reflects a borrower’s creditworthiness and financial reliability based on past credit behavior.

Why Credit Scores Matter in Real Estate

In Canadian real estate, credit scores are a major factor in mortgage approval. Lenders use scores to assess the likelihood that a borrower will repay their loan responsibly.


Scores typically range from 300 to 900:
  • 680+ is considered good for mortgage qualification
  • Higher scores may result in better interest rates and terms


Scores are based on factors including payment history, credit utilization, length of credit history, recent inquiries, and types of credit.


Poor credit may limit options to higher-interest or alternative lenders. Borrowers should review and improve their scores before applying for a mortgage.


Understanding credit scores helps buyers prepare for mortgage success and secure more favorable financing.

Example of a Credit Score in Action

A buyer with a credit score of 735 qualifies for a competitive fixed-rate mortgage from a major bank.

Key Takeaways

  • Measures financial trustworthiness.
  • Used in mortgage and loan decisions.
  • Affects interest rates and terms.
  • Based on credit history and usage.
  • Can be improved before home buying.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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