How Does Your Credit Score Hold Up?

Luisa Hough • October 3, 2017

In an article released by the Canadian Mortgage and Housing Corporation (CMHC), it appears that those people who have a mortgage tend to be a little more credit worthy compared to those who don’t. It also points out that credit scores are quite steady across Canada. 

If you’ve never seen your credit report, or it’s been a while since you have looked at your credit score, now would be a great time to make sure everything is as it should be. You have a couple options, firstly, you can access your report from Equifax Canada or TransUnion for a nominal fee, or if you have a mortgage renewal coming up or you plan on purchasing a property in the near future, I’d love to meet with you. We can look at your credit history and I can let you know where you stand. Contact me anytime!

For general purposes, credit score ranges can be grouped as follows:

  • Poor (less than 599);
  • Fair (600 – 659);
  • Good (660 – 699);
  • Very Good (700 – 749);
  • Excellent (more than 750)

Here are the main points of the CMHC article for you: 

“Overall, mortgage holders tend to have better credit scores than other consumers.” 

In Canada, the majority of mortgages are held by borrowers with a very good or an excellent credit score, a share that has been trending up since the third quarter of 2015, reaching 80.7% in the first quarter of 2017. The share of mortgage holders with an excellent credit score has increased by almost one percentage point in the first quarter of 2017 compared to the same quarter in 2016. This shows that the current outstanding mortgage debt is largely supported by consumers with healthy credit history.

While consumers with poor or fair credit scores are a small share of the market, they represent a more significant source of risk of default of payment and potential losses for lenders than all consumers with higher credit scores. The share of mortgage holders with a fair or poor credit score has dropped to 10.2%, in the first quarter of 2017, from 11.2% two years earlier.

Overall, mortgage holders tend to have better credit scores than other consumers. In the first quarter of 2017, 76.8% of consumers without a mortgage had a very good or an excellent credit score, a share 3.9 percentage points lower than among mortgage holders. Additionally, we find that this gap between mortgage holders and other consumers has been widening since the end of 2014, when the share of consumers with a very good or an excellent credit score was only 2.9 percentage points higher among mortgage holders than among other consumers. The widening of this gap has largely been driven by the improvement of scores among mortgage holders.

On the lower end of the spectrum, we find that 15.2% of consumers without a mortgage had a poor or fair credit score in the first quarter of 2017, which is 5 percentage points higher than consumers with a mortgage.

There are differences between cities, however;

Among Canada’s six largest metropolitan areas, only Edmonton and Calgary have a share of mortgage holders with a very good or excellent score lower than the Canadian average. Toronto is the area that has had the largest increase in the last 4 years, with a gain of 3.7 percentage points, followed by Vancouver, with a gain of 2.4 percentage points.

The shares of mortgage holders in Canada’s largest cities with a poor or fair credit score has been generally trending down in Montréal, Ottawa-Gatineau, Toronto and Vancouver, with the largest decreases reported in Toronto and Vancouver: decreases of 2.9 and 1.8 percentage points, respectively, from the first quarter of 2013 to the first quarter of 2017.

The share of mortgage holders in the two lowest credit score ranges remains more elevated in the oil-rich markets of Edmonton and Calgary.

In each of Canada’s six largest markets, the proportion of consumers with poor or fair credit scores is smaller among mortgage holders than among consumers without a mortgage.

Recent Posts

Breaking Down the Real Costs of Homeownership

By Luisa & Candice Mortgages • April 15, 2026
Don’t Forget About Closing Costs When planning to buy a home, most people focus on saving for the down payment. But the truth is, that’s only part of the equation. To actually finalize the purchase, you’ll also need to budget for closing costs —the out-of-pocket expenses that come up before you get the keys. Closing costs can add up quickly, which is why they should be part of your pre-approval conversation right from the start. Lenders will even require proof that you’ve got enough funds set aside. For example, if you’re getting an insured (high-ratio) mortgage, you’ll need at least 1.5% of the purchase price available in addition to your down payment. That means a 10% down payment actually requires 11.5% of the purchase price in cash to make everything work. Let’s break down some of the most common expenses you should prepare for: 1. Home Inspection & Appraisal Inspection : Paid by you, this gives peace of mind that the property is in good shape and doesn’t have hidden problems. Appraisal : Required by the lender to confirm value. Sometimes this is covered by mortgage insurance, sometimes by you. 2. Legal Fees A lawyer or notary is required to handle the title transfer and make sure the mortgage is properly registered. Legal fees are often one of the larger closing costs—unless you’re also responsible for property transfer tax. 3. Taxes Many provinces charge a property or land transfer tax based on the home’s purchase price. These fees can range from hundreds to thousands of dollars, so you’ll want to factor them in early. 4. Insurance Property insurance is mandatory—lenders won’t release funds without proof that the home is insured on closing day. Optional coverage like mortgage life, disability, or critical illness insurance may also be worth considering depending on your financial plan. 5. Moving Costs Whether you’re renting a truck, hiring movers, or bribing friends with pizza and gas money, moving comes with expenses. Cross-country moves especially can be surprisingly pricey. 6. Utilities & Deposits Setting up new services (electricity, water, internet) can involve connection fees or deposits, particularly if you don’t already have a payment history with the utility provider. Plan Ahead, Stress Less This list covers the big-ticket items, but every purchase is unique. That’s why it pays to have an accurate estimate of your personal closing costs before you make an offer. If you’d like help planning ahead—or want a breakdown tailored to your situation—let’s connect. I’d be happy to walk you through the numbers and make sure you’re fully prepared.

How Your Loans and Spending Habits Are Quietly Shaping Your Credit Score

By Luisa & Candice Mortgages • April 10, 2026
Your credit score is one of the most important numbers in your financial life — especially when it comes to getting a mortgage. But for most Canadians, how that number actually gets calculated remains a bit of a mystery.

What Online Mortgage Calculators Can—and Can’t—Tell You

By Luisa & Candice Mortgages • April 8, 2026
What Online Mortgage Calculators Can—and Can’t—Tell You Online mortgage calculators are everywhere—and on the surface, they seem like a no-brainer. You plug in some numbers, and out pops what you can “afford.” Simple, right? Not quite. While the math itself is correct, the story behind those numbers is often misleading. Mortgage qualification isn’t just about numbers—it’s about context, risk, and lender policy. And that’s where calculators fall short. The Numbers Are Accurate—but the Picture Isn’t An online calculator can show you what a payment might look like at a given interest rate, or how making extra payments could reduce your amortization. That’s useful information! But when it comes to mortgage qualification , calculators don’t account for the many variables that lenders consider, such as: Your credit history and score Employment type (salary, self-employed, contract) Outstanding debts and monthly obligations Assets, savings, and down payment source The property type and location you’re buying Lenders evaluate all these factors through their internal risk models. That means two people entering the exact same numbers into a calculator could receive very different results when they actually apply for a mortgage. Why Online Calculators Can Mislead You When you see a “How much can I afford?” or “Mortgage Qualification” calculator online, it’s easy to treat the result as fact. But these tools don’t know your financial story—they only crunch the data you enter. A calculator can’t predict how a lender views your risk, how new mortgage rules apply to your file, or how things like spousal support, car loans, or variable income will impact approval. In short: calculators estimate payments, not qualification . Use Calculators the Right Way Don’t get us wrong—online calculators still have value. Use them to explore different “what-if” scenarios: How do payments change with different down payment amounts? How would a rate increase affect affordability? What if you added $100 a month to your payments? These tools are great for helping you understand your comfort zone. Just remember: they’re a starting point, not a green light. The Real First Step: Get a Pre-Approval If you’re serious about buying a home, skip the guesswork and get a mortgage pre-approval . It’s quick, free, and gives you real-world clarity on what you can afford. A pre-approval looks at your full financial picture—income, credit, debts, assets—and provides a framework for your purchase price, payment range, and rate options. It’s the only way to get a reliable answer to the question, “What can I really afford?” Final Thoughts Online calculators are convenient, but they can’t replace expert advice. Think of them as a starting point, not a solution. A professional mortgage broker can interpret the numbers, navigate lender policies, and tailor your financing strategy to your actual situation. If you’d like help understanding your true buying power—or want to get pre-approved with confidence— reach out anytime . I’d be happy to walk you through your options and help you make sense of the numbers.

Luisa & Candice Mortgages 

Contact Me Anytime!

The best way to get ahold of me is to submit through the contact form below. However feel free to give me a shout on the phone as well.

Contact Us