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Bad credit mortgage

A bad credit mortgage is available in Canada through alternative (B) lenders and private lenders when banks decline your file. Expect a higher rate and a larger down payment or more equity, and plan to move back to a prime lender once your credit recovers.

Updated October 7, 2026

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Key takeaways
  • Prime lenders usually want 680+; insured mortgages may accept 600+.
  • Alternative lenders often accept scores in the 500s with more equity.
  • A one- to two-year plan can get you back to prime rates.

What credit score do I need for a mortgage in Canada?

Credit score and lender fit
ScoreLikely lenders
680+Banks, credit unions, monolines
600–679Insured prime, credit unions, alternative lenders
Below 600Alternative (B) and private lenders

How do I move back to a prime lender?

  1. Pay every bill on time for 12 months
  2. Keep card balances under 30% of limits
  3. Renew with a prime lender when your term ends

Frequently asked questions

Can I get a mortgage after a consumer proposal?

Yes, often with alternative lenders once the proposal is paid or in good standing.

MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.

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