Planning to apply for a mortgage in Canada? Your credit score is one of the most important factors lenders consider. Here's how to identify and fix errors before you apply — and how long it realistically takes.
Most major Canadian lenders (Big 6 banks) want to see:
• Minimum 620 for insured mortgages (less than 20% down)
• Minimum 680 for conventional mortgages (20%+ down) at best rates
• 720+ to qualify for the best mortgage rates available
CMHC requires a minimum 600 for insured mortgages. Private lenders may accept lower scores but charge significantly higher rates.
1. Collections and charge-offs: highest score impact, often fastest to remove if past reporting limits or inaccurate
2. Late payment notations: especially recent ones (last 2 years)
3. Credit utilization: if above 30%, pay down balances before applying
4. Hard inquiries: remove any unauthorized ones
5. Incorrect balances or limits: fix anything inflating your utilization ratio
Dispute filed today → Bureau receives in 3-5 days → 30-day investigation window → Score updates 1-2 billing cycles after removal.
Realistically: 45-60 days from filing your first dispute to seeing score movement.
For a mortgage application, start your credit dispute process at least 90 days before you plan to apply. 6 months is better. This gives you time for:
• Multiple dispute rounds if needed
• Score to update through billing cycles
• FCAC escalation if bureaus don't respond
A common mistake: applying for a mortgage while disputes are still showing as 'under investigation' on your credit file. Many lenders won't approve or will delay an application when items are in dispute.
Finish your disputes, wait for the score to update, then apply.