Does a mortgage pre-approval hurt your credit score?

What do lenders say about the credit check?

What credit score do you need?

CMHC's minimum for an insured mortgage is 600 for at least one borrower, and CMHC may consider alternative credit for borrowers without a Canadian history. Canada Guaranty's self-employed programme asks for a "strong credit profile" without a number. Uninsured lenders (20% or more down) set their own minimums, and alternative lenders accept lower scores at higher rates and fees.

The score doesn't change the stress test: in the worked example the debt ratios are the same at 620 and 590. It changes whether the mortgage can be insured, and what rate you're offered.

What does each credit score range usually mean?

Can you shop around without hurting your score?

• Start with lenders that use a soft check for pre-approval (RBC online, TD online, nesto at submission).
• If a hard check is needed, keep your applications within a few weeks of each other.
• A broker can compare several lenders with a single application, then submit to the one you choose.

How do you protect your score until closing?

Keep card balances low, pay everything on time, and don't open new credit. Lenders often re-check before funding, and a score that drops below a lender's bar between pre-approval and closing can change the approval or the rate.

What does a lower score cost in buying power?

A weaker score rarely means "no"; more often it means a higher rate. Every half point of rate lowers the most you can borrow, because the stress test runs at your rate plus two points. For the same $120,000 household with $60,000 down (first-time buyer, 30 years):

The extra rate a lender charges for a lower score varies by lender and isn't published; the table shows what a given premium does once you know it. Repairing a score before you apply is often worth more than any negotiation.

Which lenders use a soft check?

A soft check doesn't affect your score; a hard check may lower it a little for a while. Several mortgage inquiries in a short window are usually treated as one shopping event, but ask each lender which kind of check it runs before you apply.

Should you check your own credit report first?

Yes. Both Canadian credit bureaus, Equifax and TransUnion, let you see your own report, and checking it yourself doesn't affect your score. Look for accounts you don't recognise, late payments that were actually on time, and old balances that should show as paid. Disputes take time, so do this a few months before you apply, not the week before. Then keep your card balances well under their limits and avoid opening new credit until your mortgage funds: utilisation and new inquiries are the parts of a score you can change fastest.