Real Estate

Credit score for mortgage

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  • Apr 19th, 2021 5:02 pm
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[OP]
Member
Jan 28, 2019
432 posts
204 upvotes

Credit score for mortgage

What is the minimum (equifax) score needed for a mortgage?
First time home buyer
5% downpayment
10 replies
Newbie
Nov 29, 2020
24 posts
18 upvotes
If you're looking for a mortgage from a big bank, most of them will prefer you have a score of at least 660. if your score is lower they may consider it but your TDSR/GDSR will have to be lower.
Sr. Member
Jul 15, 2019
619 posts
461 upvotes
As skeet mentioned is 680 for CMHC insured mortgages, and when you put 20% down you can get away with a little less... it is important to understand they do not use Equifax. Equifax is a consumer credit score, lenders will generally use what's called a beacon score in Canada, and it can vary from what consumers have access to see. Sometimes you score is much higher on the beacon, since things the consumer credit score algorithms weigh heavily are not as affected on the beacon. But, just as that is possible it can be so the other way around.

Generally speaking, use the consumer credit scores only to see what's on your report, and a rough idea of how you are doing. It's best to start talking with a mortgage broker, and they can run your credit and see what's possible for you.
[OP]
Member
Jan 28, 2019
432 posts
204 upvotes
freeman93 wrote: As skeet mentioned is 680 for CMHC insured mortgages, and when you put 20% down you can get away with a little less... it is important to understand they do not use Equifax. Equifax is a consumer credit score, lenders will generally use what's called a beacon score in Canada, and it can vary from what consumers have access to see. Sometimes you score is much higher on the beacon, since things the consumer credit score algorithms weigh heavily are not as affected on the beacon. But, just as that is possible it can be so the other way around.

Generally speaking, use the consumer credit scores only to see what's on your report, and a rough idea of how you are doing. It's best to start talking with a mortgage broker, and they can run your credit and see what's possible for you.
Is that the borrowell score?
Sr. Member
Jul 15, 2019
619 posts
461 upvotes
Sternchen30890 wrote: Is that the borrowell score?
All scores you see equifax, borrowell, credit karma, trans union, mogo, any one from your bank... are consumer credit scores and fall into the same category. The beacon score cannot be accessed by consumers, only lenders generally. In the USA they have access to their FICO scores, while us in Canada are still kept in the dark,
Deal Fanatic
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Feb 2, 2014
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Sternchen30890 wrote: What is the minimum (equifax) score needed for a mortgage?
First time home buyer
5% downpayment
600 FICO score is the minimum required for an insured mortgage.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Sternchen30890 wrote: I thought that changed?
There's 3 insurers in the industry (CMHC, Sagen formerly Genworth, and Canada Guaranty). You can get it done with a 600 FICO score with some of the insurers.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
[OP]
Member
Jan 28, 2019
432 posts
204 upvotes
CdnRealEstateGuy wrote: There's 3 insurers in the industry (CMHC, Sagen formerly Genworth, and Canada Guaranty). You can get it done with a 600 FICO score with some of the insurers.
and if I go to a broker he will try all those?
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Feb 2, 2014
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Sternchen30890 wrote: and if I go to a broker he will try all those?
It's not about "trying". Once a file is reviewed, the lender is going to send it to the insurer that will approve it based on their protocols.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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