What credit score do I need for a mortgage in Ontario?
Answered by Rajiv Verma, Mortgage Broker · Reviewed 13 August 2026 · About a 5 minute read
The direct answer
There isn’t one number — there are three, and they do different jobs. 620 is the minimum Beacon score most A lenders and monoline lenders will accept on an insured mortgage. 680 is the score at which your borrowing limits get more generous — above it you’re allowed higher debt ratios, so you qualify for more. Below 500 is where B and alternative lenders can still work, with a rate premium. A low score narrows your options and raises the cost. It doesn’t end the conversation.
THE SHORT VERSION
- 620 Beacon — the working minimum for an insured mortgage at most A and monoline lenders
- 680 Beacon — the line where your allowed debt ratios go from 35/42 to 39/44, which means you qualify for more
- 650 or below at an A lender — approval is still possible, but the file gets read properly, and why the score is low matters
- Below 500 — B and alternative lenders can still consider it, with a rate premium
- Private lending is driven by the property, the equity and the exit — not the score
- The score sets which door opens, how much you get, and what it costs
The tiers, in plain terms
| Lender type | Score they work with | What actually drives the decision |
|---|---|---|
| Banks, A lenders and monolines | 620+ Beacon on insured; 680+ opens higher ratios | Score, verified income, debt ratios, property |
| A lenders, 650 or below | Case by case | The reason for the score, utilisation, and the wider picture |
| B and alternative lenders | Can go below 500 | Income (assessed gross), equity, the story — with a rate premium |
| Private lenders and MICs | Not score-led | Equity, property, and a credible exit |
Read that table downward, not across. Each row isn’t a worse version of the one above — it’s a different way of looking at the same borrower. A bank asks “does this score fit our box?” A private lender asks “if this goes wrong, does the property cover it?”
The number nobody tells you about: 680
Most articles about credit scores only talk about approval. They miss the more useful point — your score also decides how much you’re allowed to borrow.
On an insured mortgage, lenders work to two debt ratios: GDS (what your housing costs take of your gross income) and TDS (housing plus all your other debts). The limits are not the same for everyone.
| Beacon score | GDS limit | TDS limit | What it means |
|---|---|---|---|
| 680 or above | 39% | 44% | The more generous set — you qualify for more |
| Below 680 | 35% | 42% | Tighter — the same income buys less |
Four percentage points sounds small. It isn’t. On the same income, the same down payment and the same property, crossing 680 can be the difference between the house you wanted and the one you settled for — and it costs nothing but time.
This is the most actionable thing on this page. If you’re at 665 and buying in three months, the highest-return work you can do is not shopping for a rate. It’s getting to 680. Paying down a card is usually the fastest route there, because utilisation moves a score faster than almost anything else.
Why “650 or below” is the number that matters most
This is where most people are, and it’s the least understood part of the process.
Below 650, an A lender doesn’t just decline. They read the report properly, and they’re looking for three things:
What caused it. A single missed payment during a job change reads completely differently to a pattern of late payments over three years. One is an event. The other is a habit.
Utilisation. Someone at 640 with cards nearly maxed out looks worse than someone at 640 who paid down a card last month.
Whether the rest of the file holds together. Steady income, real savings, sensible debt, a property that makes sense.
Where there’s a genuine story behind a low score, A lenders can and do lend. That’s not optimism — it’s how those files actually get approved. The story has to be true, documented and explainable, which is most of what a broker does on a file like this.
Below 500 — the part almost nobody publishes
Most sites stop at “you’ll need good credit.”
B and alternative lenders can consider scores below 500. It carries a rate premium, and the file still has to make sense — income, equity, and a reason to believe the situation is stable or improving.
What that means practically: a bank decline at 480 is a decline from that bank, not from the market. Different tier, different question, sometimes a different answer.
What it doesn’t mean: that it’s free, or automatic, or the right move. A higher rate on a file that’s already tight can make things worse rather than better.
An Ontario example
Two homeowners, both at 630, both wanting to refinance.
| Homeowner A | Homeowner B | |
|---|---|---|
| Why the score is low | Divorce, two missed payments in 2024, clean since | Cards at 95%, several recent applications |
| Utilisation | Low | Very high |
| Likely path | A lender, with explanation | B lender — or fix utilisation first |
Same score. Different answers. This is why “what score do I need” is the wrong question, and “what does my report actually say” is the right one.
Illustrative only. Every file is reviewed individually.
When chasing a higher score is the wrong move
When the fix takes longer than your deadline. If you have to close in six weeks, a score-improvement plan that takes six months isn’t a plan.
When the score isn’t the problem. Plenty of declines are about income documentation or debt ratios, and the score was never the blocker. Fixing the wrong thing costs months.
When “credit repair” is being sold to you. Nothing a paid service can do that you can’t do yourself: pay down utilisation, make every payment on time, don’t open new accounts, correct genuine reporting errors. Be careful with anyone charging for that.
When applying repeatedly is doing the damage. Multiple applications in a short window pull your score down while you’re trying to push it up.
What to check before you apply anywhere
- Your actual report from both Equifax and TransUnion — not a score from an app
- Utilisation on every card and line — usually the quickest win
- Anything reported in error, which is more common than people expect
- Whether the low score is an event or a pattern
- Your timeline, honestly — it decides whether fixing or proceeding is right
What to do next
Pull both reports and look at them properly. Then, if you want a straight read on which tier your file fits and what it’s likely to cost, send me the details.
I’ll tell you if waiting three months is the better move. Sometimes it is, and that’s not a deal I mind losing.
Related questions
- What is a MIC or B lender, and how is it different from a bank?
- How do I get from a private mortgage back to a bank?
- Credit & Mortgages — start here
Answered by Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116
General information about Ontario mortgages — not financial, legal or mortgage advice. Lender guidelines and insurer requirements vary and change. Options depend on income, credit, equity, property and each lender’s requirements. Every file is reviewed individually.