The numbers lenders actually use
There’s no single “mortgage score” in Canada, but there are thresholds that matter. For a default-insured mortgage (less than 20% down, insured through CMHC, Sagen or Canada Guaranty), the insurers generally require at least one borrower to have a score of 600 or higher. For the best rates from the big banks and other prime lenders, underwriters typically want to see 680 and up, and rate and approval get comfortable above 720. Below 600, you’re looking at alternative (“B”) lenders with higher rates and fees, or waiting.
Score is only part of the file review
A mortgage underwriter reads the whole Equifax report, not just the number. They look for:
- At least two active tradelines, each open for two years or more, each with a decent limit. Thin files get declined at 700 as often as damaged files get declined at 620.
- No late payments in the last 12–24 months, especially on housing-type accounts.
- Collections paid or resolved, with proof.
- A consumer proposal or bankruptcy discharged at least two years ago, with clean credit re-established since — many prime lenders want it gone from the file entirely.
- Utilization low across all cards, because high balances raise your debt ratios as well as hurting the score.
The 18-month mortgage-readiness plan
- Month 0: Pull your Equifax and TransUnion reports. Fix errors. Count your tradelines and their ages. If you have fewer than two, add a reported account now — the two-year clock starts today.
- Months 1–6: Every account paid on time, every card under 30% on its statement date. No new applications except what you need for the tradeline count.
- Months 6–12: Same habits. If you rent, get that history on the file — Boost members have up to two years of past rent reported to Equifax, which mortgage underwriters read as housing-payment history.
- Months 12–18: Talk to a mortgage broker six months before you want to buy. They’ll tell you which lender fits your file and exactly what score they need.
Where AvenaCredit fits
A credit-building membership is a reported tradeline you can open today with no credit check, which solves the “not enough accounts” problem without adding debt to your ratios. Each monthly payment is reported to Equifax Canada as an on-time payment — here’s the process. Members gain an average of 71 points after 12 months. Build is the usual plan for mortgage prep; Boost if you’re a renter who wants rent history on file. Compare the plans.
Common questions
Does the lender pull Equifax or TransUnion?
Most Canadian mortgage lenders pull Equifax, and some pull both. AvenaCredit reports to Equifax for that reason. See Equifax vs. TransUnion.
Will applying for a mortgage hurt my score?
Multiple mortgage inquiries within a short window are generally treated as one. Shopping around is fine; spreading applications over months is not.
I’m at 640 — should I wait?
Ask a broker. Some prime lenders will work with 640 and strong income; the rate difference between 640 and 700 can be worth thousands over a term, so a six-month build is often the better trade.
Start with how the score is calculated, then choose a plan.