What credit score is needed for a house?

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Getting a mortgage in Canada isn’t as daunting as climbing Everest. Aim for a credit score between 600 and 680, depending on your mortgage type. An insured mortgage with less than 20% down only requires a score starting at 600, while conventional mortgages need around 680. Some lenders may accept a score of 660-665. Got questions? Reach out via phone, text, or live chat.

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Credit Score Needed For A House Question

What credit score is needed for a house? DEBT INSIDERS I’m planning to buy a house but don’t know if my credit score is high enough. I want to know what score I need to qualify for a mortgage.

From: Anonymous Question
Location: Richmond Hill, Ontario (ON)
Category: financial planning

Credit Score Needed For A House Answer

In Canada, getting a mortgage doesn’t have to feel like climbing Everest! Generally, you’ll need a credit score between 600 and 680, but it depends on the type of mortgage. Opting for an insured mortgage? With a down payment under 20%, you’re good with a score starting at 600, although many lenders might give you a thumbs up around 620-640. If you’re going for the conventional route with a 20%+ down payment, aim for a minimum score of 680. But hey, don’t sweat it too much because some lenders might even nod in approval with a score around 660-665. To better understand how your credit score impacts your mortgage eligibility, check out the details on credit score agencies.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

If you’re thinking about buying a home, understanding your credit score is crucial. Typically, a minimum credit score of 620 to 640 is recommended for conventional mortgages, but this requirement may vary by lender and mortgage type. For more precise guidelines, consider exploring options like debt management plans to improve your financial situation before applying for a mortgage.

From: OSB Helper

Related Questions to Credit Score Needed For A House

Here are the top 5 most frequently asked questions related to the credit score needed for a house in Canada, along with brief answers:

1. What is the minimum credit score needed for a mortgage?

• The minimum credit score needed is typically between 620 and 680, depending on the type of mortgage and lender[1][3][5].

2. How does credit score affect mortgage interest rates?

• A higher credit score generally leads to lower interest rates, with scores above 760 often qualifying for the best rates[1][3][5].

3. What other factors besides credit score do lenders consider for mortgage approval?

• Lenders consider debt service ratios, loan amount, amortization period, employment record, and stress test results[1][3][5].

4. Do I need a higher credit score for a conventional mortgage versus an insured mortgage?

• Yes, conventional mortgages typically require a higher credit score, often around 680, compared to insured mortgages which may accept scores as low as 620[1][3].

5. How can I check my credit score for free to see if I qualify for a mortgage?

• You can check your credit score for free through services like Compare Hub, Borrowell, or by requesting it annually from Equifax or TransUnion[1][3][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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