What Credit Score Do You Actually Need to Buy a Home in Alberta?

Key takeaways

• 600 is the CMHC minimum for insured mortgage financing, from at least one borrower on the application.
• It is a floor, not a target. Many lenders want more, and pricing improves well above it.
• Your score is only one input. Debt service ratios cap housing costs near 39% of income and total debt near 44%.
• Payment history is the largest single factor in a Canadian credit score — larger than balances, and far larger than the number of accounts.
• Multiple mortgage credit checks inside a short shopping window are treated as one inquiry, so comparing lenders does not compound the damage.

Who this guide is for

Edmonton first-time buyers who want to know where they stand before a lender tells them, and anyone who has been told a number by a friend and would like to know what the actual published requirement is.

The floor, and what sits above it

For a mortgage with less than 20% down, the loan must be insured, and CMHC requires a minimum credit score of 600 from at least one borrower. That is the published bar and it is genuinely a bar — below it, insured financing is generally unavailable regardless of income.

Above it, the effect changes character. The question stops being “will they approve me” and becomes “what will they charge me”. Broadly: the low 600s clears the requirement but leaves you with fewer lenders and less negotiating room; the 700s opens most of the market; the 750-plus range is where the best advertised pricing generally lives.

What actually moves a Canadian credit score

• Payment history — the single largest factor. One missed payment reported to the bureau does more damage than almost anything else you can do.
• Credit utilisation — how much of your available credit you are using. Keeping balances well under the limit, ideally under thirty per cent, helps materially.
• Age of accounts — a long-held card in good standing is an asset. Closing your oldest card to “tidy up” before a mortgage application is a common and costly mistake.
• New credit — several applications in a short period looks like distress. Do not finance furniture for the new house before closing.
• Mix — a modest range of credit types helps slightly, but it is far less important than the first two.

What to do in the six months before applying

Pull your own report from both Equifax and TransUnion — you are entitled to it, and checking your own file is a soft inquiry that does not affect your score. Errors are more common than people assume, and a mistaken collection or an account that is not yours takes time to dispute, so find it early rather than during underwriting.

Then: pay everything on time without exception, bring balances down, leave old accounts open, and do not apply for anything new.

The score is not the whole application

A strong score with unstable income or heavy existing debt still fails the ratios. A moderate score with steady income, a clean payment record and a decent down payment frequently succeeds. The score decides which lenders will look; the ratios and the stress test at the greater of contract plus 2% or 5.25% decide how much they will lend.

Sources

• CMHC — Calculating GDS / TDS
• Financial Consumer Agency of Canada — Preparing to get a mortgage
• Office of the Superintendent of Financial Institutions — Minimum qualifying rate for uninsured mortgages
• CMHC — Information for consumers

Frequently asked questions