Your credit score isn't a mystery formula, it's built from a handful of specific factors, weighted roughly the same way across Canada's two credit bureaus, Equifax and TransUnion. Understanding them helps you actually improve your score before applying, instead of guessing.
The Main Factors, Roughly Weighted
- Payment history (~35%): whether you've paid your bills on time. This is the single biggest factor, and the one most damaged by even one missed payment reported to the bureau.
- Credit utilization (~30%): how much of your available credit you're using, especially on credit cards. Staying below roughly 30% of your limit is generally recommended.
- Length of credit history (~15%): how long your accounts have been open. Older, well-managed accounts help your score, which is part of why closing old cards can sometimes hurt.
- Credit mix (~10%): having a mix of credit types (credit card, car loan, line of credit) rather than only one kind.
- New credit inquiries (~10%): each hard inquiry (a new application) can ding your score slightly, especially several in a short period.
What Score Do You Actually Need for a Mortgage?
Canadian scores generally range from about 300 to 900. Most bank lenders want to see 680 or higher for the best rates and easiest approval. Insured mortgages can sometimes go lower depending on the insurer and the rest of your file. Below roughly 600-650, you're typically looking at B-lender or alternative financing rather than a standard bank mortgage, covered in our bad credit mortgage guide.
Does Checking Your Own Score Hurt It?
No. Checking your own credit report or score is a "soft inquiry" and doesn't affect your score at all. Only "hard inquiries," applications where a lender pulls your credit, have any impact, and most credit scoring models treat multiple mortgage-related inquiries within a short window (commonly 14-45 days) as a single inquiry for rate-shopping purposes.
Practical Steps Before You Apply
- Pay every bill on time, every time, for at least the several months before applying
- Keep credit card balances well below their limits
- Don't close old accounts right before applying
- Avoid opening new credit accounts or making large purchases on credit in the months before your mortgage application
Want to Know Where You Stand?
We'll review your credit picture honestly before you apply, so there are no surprises partway through. Talk to Sean.