Your credit score is one of the most important factors lenders consider when you apply for a mortgage. If you have a strong credit profile and higher credit score, you might get a lower interest rate or more flexible payment terms.

In Canada, credit scores range from 300 to 900. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.

The lenders see your credit score as an indication of how well you handle financial responsibility and your credit behaviour in the past. They want to make sure you pay back what you borrow, especially for a large purchase like a property.