Your credit score is like your financial report card — and when it comes to buying a home, lenders definitely check your grades. But here’s the thing: you don’t need perfect credit to become a homeowner in Alberta. You just need to know how the system works (and how to make it work for you).
📈 What Is a Credit Score, Anyway?
Your credit score is a three-digit number that shows lenders how likely you are to repay your debts.
It’s based on:
- Payment history
- Amounts owed (credit utilization)
- Length of credit history
- New credit applications
- Types of credit used
In Canada, scores range from 300 to 900 — the higher, the better.
🏡 What Credit Score Do You Need to Buy a Home in Alberta?
Here’s the breakdown most mortgage lenders follow:
| Type of Mortgage | Minimum Credit Score | Details |
|---|---|---|
| Insured (less than 20% down) | 600+ | Most lenders and CMHC require at least 600 for approval. |
| Uninsured (20%+ down) | 620–680+ | Stricter rules apply since there’s no mortgage insurance. |
| Best Rates & Terms | 700+ | You’ll likely qualify for the most competitive interest rates. |
💡 Tip: Even if your score is lower, alternative lenders may still approve you — but expect higher rates or a larger down payment requirement.
💪 How to Boost Your Credit Score Before Buying
If your score isn’t quite where you want it to be, here are some quick wins:
- Pay all bills on time (even your cell phone counts).
- Keep credit balances under 30% of the limit.
- Avoid applying for multiple new credit cards before your mortgage.
- Check your credit report with Equifax or TransUnion for errors.
- Don’t close old accounts — longer credit history helps.
Even a 20–30 point jump can unlock better mortgage options.
🧠 What Lenders Really Look At
Credit score isn’t the whole story. Mortgage brokers also look at:
- Income stability
- Employment type
- Down payment size
- Debt ratios (GDS/TDS)
- Overall financial picture
That’s why a mortgage pre-approval is your best move — it gives you the full picture of what you qualify for and how to improve it before you start shopping.
✉️ Want to Know Where You Stand?
If you’re unsure what your credit score means for your buying power, connect with one of ARIVL’s trusted mortgage partners. We’ll help you review your credit, build a plan, and get pre-approved — stress-free.
📩 Email us at hq@arivl.ca or call Jakie at 780-224-5566.
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