What's the Minimum Credit Score for a Mortgage? (And What If Yours Is 500?)

"Can I even get a mortgage with my score?" We hear that question every week. Most people ask it quietly, like they already know the answer is no. The truth is there's no single minimum credit score for a mortgage in Canada. It depends on the kind of lender, how much you put down and what the rest of your file looks like.

Here's how the numbers really work, what changes when your score is in the 500s, and what you can do about it in the next few months.

How Credit Scores Work in Canada

Canadian credit scores run from 300 to 900. Higher is better. Your score comes from your credit report, which is kept by two credit bureaus, Equifax and TransUnion. Your two scores are often a little different, because not every lender reports to both.

The score is built from a handful of things:

• Payment history: do you pay on time? This matters most.
• How much of your credit you use: a card at its limit hurts more than one at 20%.
• How long you've had credit: older accounts help.
• New credit: lots of new applications in a short time can pull it down.
• Serious marks: collections, a consumer proposal or a bankruptcy.

Lenders don't just look at the number. They read the report behind it. A 640 score with one late payment three years ago reads very differently from a 640 with two collections from last spring. If you want to know how a credit check itself affects your score, our post on mortgage credit check myths walks through hard and soft inquiries.

The Minimum Credit Score for a Mortgage, by Lender Type

There are three main kinds of lenders in Canada. Each one sets the bar in a different place. This is the range we see across the market as of 2026. Each lender sets its own rules, and they change.

Banks and credit unions (A-lenders)

If you put down less than 20%, your mortgage needs default insurance. The insurer sets a floor. For example, CMHC requires at least one borrower to have a score of 600 or higher on its standard purchase program. That's the minimum, not the target. Some banks set their own floor higher than that, and for their sharpest pricing many like to see 680 or more.

With 20% or more down, the bank sets its own rules. Most still want a score somewhere in the 600s, plus clean recent payments.

Alternative lenders (B-lenders)

B-lenders look at the whole story. They can go below 600 depending on the file, and some will look at scores in the 500s case by case. They care more about why the score dropped and whether you've been paying on time since. They usually want around 20% down, and they can allow higher debt ratios, up to roughly 50% of your income in some cases. The trade-off is a higher rate and usually a lender fee. Our guide to B-lender mortgages in Calgary explains how these loans work.

Private lenders

Private lenders focus on the property and your equity. Many have no set minimum score. They usually want 20% to 25% or more down (or equity, on a refinance), and the terms are short, often one year. They cost the most, so they're best used as a bridge with a clear plan to move to a better lender. See our page on private mortgage lenders in Calgary for how that bridge works.

Can You Get a Mortgage With a 500 Credit Score?

Possibly. But not usually from a bank.

At 500, an insured mortgage with 5% down is off the table, because you're below the insurer floor. That doesn't end the conversation. It changes it. Here's what a 500-score file usually needs to work:

• A bigger down payment or more equity. Plan on 20% or more for a B-lender, and 20% to 25% or more for a private lender.
• Steady income you can prove. Lenders want to know the payment is safe.
• A clean last 12 months. Recent on-time payments show the problem is behind you.
• A clear reason. A job loss, an illness, a divorce or a business that struggled. Write it down. A short, honest letter helps.
• Old debts dealt with. Unpaid collections or judgments often have to be paid before or at closing.

If your score is low because of a consumer proposal, the timeline matters too. Many files can work with a B-lender while the proposal is still being paid, and more doors open once it's done. Our guide to getting a mortgage after a consumer proposal lays out each stage.

The goal with a 500-score mortgage is not to stay there. It's to get into a home, rebuild your credit for a year or two, and then move to a bank or credit union at renewal.

Can You Raise Your Credit Score 200 Points in 30 Days?

The honest answer is no, not in most cases. Anyone who promises that is selling something.

There is one exception. If your report has a real error, like a debt that isn't yours or a paid account still showing as owing, fixing it can move your score fast. That's why the first step is always to pull both reports. You can get them free from Equifax and TransUnion.

Beyond errors, here's what tends to help over one to six months:

1. Pay card balances down. Try to keep each card under 30% of its limit. Lenders usually report once a month, so this can show up within one or two billing cycles.
2. Pay every bill on time from today. One more late payment hurts more than almost anything else.
3. Don't close your oldest cards. They help the length of your history.
4. Stop applying for new credit. Hold off on car loans, store cards and new phones until after your mortgage closes.
5. Build credit if your file is thin. A secured card, used lightly and paid in full, starts a payment record.

These steps won't turn 500 into 700 in a month. But they can move a borderline file over a line. Going from 590 to 610 can be the difference between a B-lender and an insured bank mortgage.

What Matters More Than Your Score

Your score gets you in the door. The rest of the file decides the deal.

• Down payment or equity: more skin in the game means less risk for the lender.
• Income: how much, how steady and how you prove it.
• Debt ratios: how much of your income goes to housing and other debts.
• Recent history: a late payment last month weighs more than one five years ago.
• The property: its type, condition and location all matter.

This is why two people with the same score can get very different answers. It's also why a "no" from one bank is just one lender's answer, not the whole market's.

How Gold Lion Mortgages Can Help

When the bank says no, that's usually where our work starts. Surinderpal works with banks, credit unions, alternative lenders and private lenders. That means we can look at your file the way each of them will, before anyone pulls your credit.

We'll go through your credit report with you line by line. We'll tell you what's hurting your score, what can be fixed quickly and what just needs time. If a bank isn't the right fit today, we'll show you the other paths, what each one costs and how long you'd likely stay before moving to a better rate. Many clients in similar situations have found a path sooner than they expected. Others needed a few months of rebuilding first, and we'll tell you honestly which group you're in. You can read more on our bad credit mortgage page.

Call (587) 740-0048 or visit goldlionmortgages.com/apply.

Frequently Asked Questions

What is the minimum credit score for a mortgage in Canada?

There isn't one number for every lender. For an insured mortgage with less than 20% down, at least one borrower usually needs a score of 600 or higher. Some banks set a higher floor, and many want 680 or more for their best pricing. Alternative lenders can go lower depending on the file, and many private lenders have no set minimum.

Can I get a mortgage with a 500 credit score?

It's possible, but usually not from a bank. Some alternative lenders look at scores in the 500s case by case, often with 20% or more down and steady income. Private lenders focus on equity. Expect a higher cost, and plan to rebuild your credit so you can move to a better lender later.

How can I raise my credit score 200 points in 30 days?

In most cases you can't. Fixing a real error on your report can raise your score quickly. Paying card balances under 30% of the limit can help within a billing cycle or two. Bigger gains take months of on-time payments.

Do mortgage lenders use Equifax or TransUnion?

Both bureaus are used in Canada, and a lender may pull one or both. Your two scores can be different because not every creditor reports to both. Check both reports for free before you apply.

Is 650 a good credit score to buy a house?

A 650 score clears the 600 floor for insured mortgages, so many bank and credit union options are open to you. Some lenders want 680 or more for their best pricing. Your down payment, income and debts matter just as much as the score.

If your credit score is holding you back, call Gold Lion Mortgages at (587) 740-0048 or apply online at goldlionmortgages.com/apply.

Published: October 5, 2026. Mortgage guidelines, lender programs, and qualifying requirements change. Contact Gold Lion Mortgages to confirm current requirements for your file.

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