Your Credit Score and Your Mortgage: What Lenders Really Look At

Almost everyone worries about their credit score before applying for a mortgage. It’s important — but it’s only one piece of the picture, and a lower score is rarely the dead end people assume. Here’s what’s really going on behind the scenes.

What the numbers mean

Credit scores in Canada run from 300 to 900. Above roughly 680 opens the door to the best rates at the big banks. In the low 600s and below, bank options tighten — but alternative and B lenders have programs built for exactly that range.

What actually moves your score

Two things matter most: paying every bill on time, and keeping your balances well below your limits (ideally under 30% of each card’s limit). Length of history, how often you apply for new credit, and your mix of credit types round it out. One missed payment hurts more than most people realize.

Score isn’t everything

Lenders also weigh your income stability, your down payment, your debt load, and the property itself. A strong down payment or steady income can offset a bruised score — which is why a full application often beats a quick number check.

Quick wins before you apply

Pay balances down before your statement dates, don’t open new credit in the months before you buy, correct any errors on your report, and never let an account go to collections. Small moves can add real points in a few weeks.

Let’s look at your file together

Send me your situation and I’ll tell you honestly where you stand, what a lender will see, and the fastest path to the approval — and rate — you want.

Tyler Salmon — Mortgage Agent Level 2 (Ontario & Alberta), License #M21003803. This post is general info, not advice — every file is different, so let’s talk yours through.

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