Minimum credit score for a mortgage in Ontario: what Toronto and GTA lenders look for
TL;DR: The minimum credit score for mortgage approval decides which type of lender says yes, and your score also shapes your rate, fees and down payment options. In Ontario there is no single cutoff. The mortgage insurer sets a floor for smaller down payments, and every lender adds its own rules on top. A lower score rarely ends the conversation. It changes which lenders in the GTA fit your file, and often the score is not the real obstacle at all. The best time to talk to a broker is before you apply, because that is when you still have time to improve the numbers and choose the right lender path.
What credit score do you need for a mortgage in Ontario?
The minimum credit score for a mortgage with less than 20% down is 600, but that is the insurer’s floor, not a promise of approval. A mortgage with less than 20% down must be insured. The insurance protects the lender if the loan goes unpaid, and the cost is added to your mortgage. CMHC requires at least one borrower or guarantor to have a minimum score of 600 on an insured purchase (CMHC). Because many Toronto and GTA buyers cannot reach a 20% down payment, this floor applies to most first-time buyers.
Lenders can set a higher minimum credit score for a mortgage than the insurer, and most do. Two terms help here. An A lender is a bank or large lender with the strictest approval rules and the lowest rates. A B lender is an alternative lender that looks more flexibly at score and income, usually for a higher rate and fee. Your score decides how many of these doors are open:
| Mortgage path | How the score is used | What to expect |
|---|---|---|
| Insured, under 20% down | Insurer floor first, then each lender’s own minimum | More lender choice at higher scores. Near the floor, fewer lenders say yes. |
| A lender, 20% or more down | Set by the lender | The lowest rates and best terms go to the highest score ranges. |
| B lender | More flexible on score and on income documents | A higher rate and fee than an A lender, often used as a bridge while credit is rebuilt. |
| Private lender | Equity in the property matters more than score | Short terms and the highest cost, with a plan to move to a lower-cost lender later. |
The score also moves your rate and fees, not only your approval. The practical comparison is the cost of the path you can take today against the path you could take after improving your score. If a few months of work moves you up a tier, waiting may save more than a faster purchase would cost. If a closing date is fixed, a B lender with a clear plan to refinance can be the better route.
Talk to a broker if your score sits near any of these lines. A short review shows which tier your file fits today and what it would take to move up.
How lenders read your credit score
Lenders read your score as a summary of how reliably you have repaid debt. In Canada, scores generally run from 300 to 900, and a higher score is better (Financial Consumer Agency of Canada). The score comes from your credit report, which is held by two bureaus, Equifax and TransUnion, and the two numbers are often not identical.
Equifax describes 660 to 724 as good, 725 to 759 as very good, and 760 to 900 as excellent (Equifax Canada). Those labels are general guides. A lender’s own approval policy is what counts for your mortgage. For a broader overview of how scores work, see our guide on credit score for mortgage: what to know before you apply.
Two points matter for a Toronto buyer:
- Your score is one part of the file. Lenders also look at income, existing debts and the down payment. A strong score does not offset an income problem, and a weaker score can sometimes be balanced by a larger down payment.
- Shopping lenders does not have to hurt your score. Credit checks for the same type of loan, such as a mortgage, made within a set period are generally counted as one inquiry. The window ranges from 14 to 45 days depending on the scoring model (Equifax Canada). A broker can usually use a single credit check to approach several lenders, which keeps the effect to a minimum.
When your score is not the main issue
In the GTA, a file often struggles because of income, title or history, not the number itself. These are the situations we see most:
- Condo buyers using family help. A first-time buyer may need a parent’s income to qualify. Lenders then care about who is on the mortgage and who is on title, and the rules differ by lender. The score matters less than the structure.
- Business owners. Lenders usually base income on tax returns. A strong score can still run into low declared income after write-offs. The solution is a lender that reviews business income differently, not a higher score.
- After a consumer proposal or late payments. Lenders look at how long ago the problem happened and whether your history since then is clean. A recent rebuild often matters more than the old event.
- Newcomers. Many people moving to Toronto have no Canadian credit history yet, so the score is missing rather than low. Some arrive from countries where credit scores play a smaller role and are unsure what Canadian lenders are measuring. CMHC may consider alternatives such as an international credit report when Canadian history is limited (CMHC), and a broker can explain how the rest of the file is assessed.
- Two applicants with different scores. CMHC’s 600 minimum applies to at least one borrower or guarantor (CMHC), but individual lenders decide how they weigh two scores, so lender choice matters.
If one of these sounds like your file, the lender fit is usually decided by the story behind the number, and a broker can match it to the right lender. Talk to a broker about which of these fits you.
How to move above the minimum credit score for a mortgage before you apply
Start at least six to twelve months before you plan to buy, because most improvements take several reporting cycles to show. These steps do the most:
- Check both reports. You can order your credit reports from Equifax and TransUnion and look for accounts or late payments that are not yours (Financial Consumer Agency of Canada).
- Dispute errors. If something is wrong, ask the bureau and the creditor to correct it. Fixes can take weeks, so start early.
- Pay every bill on time. A score rises when you pay on time and use credit responsibly, and falls when you miss payments or carry too much debt (Financial Consumer Agency of Canada).
- Bring card balances down. Lower balances compared with your limits help your score and your debt ratios.
- Keep older accounts open. Length of history helps, so avoid closing your oldest card without a reason.
- Pause new credit. Avoid new cards, car loans or store financing in the months before and during your mortgage application.
If you are not sure where to start, MonsterMortgage.ca brokers can go through your report with you and rank the steps by what matters most for your target lender.
If you cannot wait: B lenders and private lenders in Ontario
If your timeline is fixed, B lenders and private lenders can approve files that an A lender would decline. Private lenders focus mostly on the equity in the property, and their mortgages are short term and cost more, so they work best with an exit plan, usually a move to an A or B lender once your credit is rebuilt.
In Ontario, private mortgages must be arranged through a licensed mortgage brokerage (FSRA). Before you sign anything, confirm the brokerage’s licence on the FSRA registry. MonsterMortgage.ca is licensed in Ontario under licence #10516, and we work with 30+ lenders, so we can compare A, B and private options on one file.
Frequently asked questions
What is the minimum credit score for a mortgage in Ontario?
For an insured mortgage with less than 20% down, CMHC requires at least one borrower or guarantor to have a score of 600 (CMHC). Lenders can ask for more, and mortgages with 20% or more down follow each lender’s own policy.
Can I get a mortgage in Toronto with bad credit?
Often yes, but through different lenders. B lenders and private lenders look beyond the score, and a broker can match your file to the right option. Costs are usually higher, so the plan should include how you will move to a lower-cost lender later.
Does shopping for a mortgage lower my credit score?
Not in the way many people expect. Multiple inquiries for the same type of loan within a set window are generally counted as one (Equifax Canada). A broker can also limit the number of separate checks.
How long does it take to raise my score above the minimum for a mortgage?
It depends on the cause. Correcting an error can be quick, while rebuilding after missed payments takes months of clean history. Six to twelve months is a reasonable planning window for most buyers.
Is a B lender a bad choice?
No. It is a different tool, usually with a higher rate and fees, that makes sense when your timing or file calls for it. The right answer depends on how long you plan to hold the mortgage and when you can refinance.
Ready to find out where you stand?
If you are planning a purchase or renewal in Toronto or the GTA, talk to a broker at MonsterMortgage.ca. We will compare your score against the minimum credit score for mortgage approval, explain which lender options fit today, and map out what to change if you want to move up a tier.
Reviewed November 2026. Rates and lender criteria are subject to change.
