Definition
The credit score, often called "Beacon score" in Canada in reference to the Equifax model, is a number between 300 and 900 that statistically summarizes your default risk as a borrower. The higher the score, the lower the perceived risk.
Calculation: approximate weighting — 35% payment history, 30% credit utilization, 15% credit age, 10% credit types, 10% new inquiries. Typical bands: 800-900 excellent, 720-799 very good, 680-719 good, 620-679 average, < 620 weak.
Mortgage thresholds: • 680+: standard qualification at most A lenders. • 720+: best rates and more flexibility on ratios. • 600-680: possible but with sometimes less favourable conditions, or directed to a B lender. • < 600: B or private lenders.
You can check your score for free via Equifax (consumer.equifax.ca) or TransUnion. Many banks offer free monthly tracking in their app.