What Credit Score Do You Need for a Mortgage?

After talking about the small things that can affect your mortgage approval, one question naturally comes up: “What credit score do I actually need?”

This is one of the most common questions I get from buyers here in Kamloops, especially first-time buyers who are worried their credit isn’t quite where it should be. The good news is you don’t need perfect credit to get approved. I’ve worked with clients who had excellent credit and lots of lender options, and I’ve also helped buyers whose scores weren’t nearly as high. In many cases, they were still able to purchase a home. That’s because your credit score is important—but it’s only one part of the overall picture.

Credit Is Only Part of the Picture

If you’ve read my previous blogs about how mortgage applications are reviewed, you’ll know lenders don’t base their decision on one number.

They’re also looking at:

• Your income
• Employment stability
• Existing debt
• Your down payment
• The property you’re buying

I’ve seen buyers with outstanding credit struggle because their debt payments were too high. I’ve also seen buyers with average credit get approved because the rest of their application was strong. That’s why it’s important to look at everything together. If you missed it, you can also read How Mortgage Applications Are Reviewed to learn what lenders consider before approving a mortgage.

What Is a Credit Score?

A credit score is a three-digit number that helps lenders understand how you’ve managed credit over time.

It’s based on things like:

• Making payments on time
• Credit card balances
• Loans and lines of credit
• Length of credit history
• Recent credit applications

In Canada, credit scores generally range from 300 to 900.

What Credit Score Do Most Lenders Prefer?

Every lender has its own guidelines, but here’s a general idea.

Most lenders commonly view credit scores like this:

• 760 and above: Excellent credit with the widest range of lender options.
• 680–759: Strong credit that fits comfortably within many traditional lending guidelines.
• 600–679: Approval may still be possible, although lender options may become more limited.
• Below 600: Financing becomes more challenging, but alternative lenders may still be an option.

These aren’t hard rules. They’re simply a general guide, and every lender looks at applications a little differently.

What This Looks Like

Let’s say two buyers are looking at the same home.

One has a credit score of 780. The other has a score of 650. Both may qualify.

The buyer with stronger credit may simply have access to more lender options and, in some cases, more favourable mortgage products. That’s why improving your credit before applying can sometimes give you more choices—even if you already qualify.

Common Credit Myths

There are a few myths I hear regularly:

• You need perfect credit. Most buyers don’t have perfect credit, and lenders aren’t expecting perfection. They’re looking for a history of responsible borrowing.
• Checking your own credit hurts your score. Usually not. Checking your own credit is generally considered a soft inquiry and doesn’t typically affect your score.
• No credit cards means better credit. Having very little credit history can actually make qualifying more difficult because lenders have less information to review.

Understanding these common misconceptions can help you focus on the things that actually make a difference when applying for a mortgage.

Simple Ways to Improve Your Credit

If you’re planning to buy within the next year or two, small improvements today can make a difference later.

Some good habits include:

• Making every payment on time
• Keeping credit card balances manageable
• Avoiding unnecessary credit applications
• Paying down high-interest debt
• Reviewing your credit report for errors

These are also some of the same habits that help avoid the approval issues I talked about in last week’s blog.

Frequently Asked Questions

What credit score do I need for a mortgage?
Many traditional lenders like to see scores around 680 or higher, but approval depends on much more than your credit score alone.

Can I get approved with a score under 600?
Possibly. Depending on your overall financial picture, alternative lending options may still be available.

Will one missed payment stop me from getting a mortgage?
Usually not. Repeated late payments are generally a bigger concern than one isolated mistake.

Should I check my credit before getting pre-approved?
Absolutely. Knowing where you stand before applying gives you the opportunity to fix any issues and helps avoid surprises later.

Wondering Where You Stand?

Credit scores get a lot of attention, but they’re only one piece of the mortgage puzzle.

I’ve found that buyers who focus on their overall financial picture—not just one number—usually have the smoothest experience. If you’re wondering where you stand or you’re planning to buy in the next year, I’m happy to walk through everything with you and help you understand what lenders are likely to look for.

Sometimes a quick conversation now can save you time and stress later.

Talk soon,
Sarah

Sources and additional information

• Financial Consumer Agency of Canada – Credit Scores and Reports
• Canada Mortgage and Housing Corporation (CMHC) – Home Buying Resources
• Mortgage in Kamloops – How Mortgage Applications Are Reviewed