Estimate Your Home Equity Options
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600 Credit Score
A credit score of 600 is considered "fair" by most Canadian lenders. While you won't qualify for the lowest rates, many lenders actively work with this credit tier. Your approval odds improve significantly with stable income, low existing debt, and employment history. A co-signer or collateral can unlock better terms.
What This Means for You
With a 600 credit score, you're in a transitional zone — above the "bad credit" threshold but below the "good" tier where the best rates live. This means you have options, but strategy matters enormously. Most Big Five banks will consider applicants at 600, but their auto-approval systems often flag scores below 650, meaning your application may require manual underwriting. This isn't necessarily bad — it means a human reviews your full picture. Alternative lenders and credit unions are often your best bet at this credit level. Credit unions evaluate members more holistically, considering banking history and relationship length. Alternative online lenders have built models specifically for the 580–650 range, offering faster approvals than banks with rates that, while higher than prime, are significantly better than bad-credit lender rates. Your income stability is your biggest lever. A borrower with a 600 score and 3+ years of stable full-time employment will get significantly better terms than someone with the same score and recent job changes.
Your Action Plan
- 1Pull your free credit report from Equifax and TransUnion — check for errors that could be dragging down your score
- 2Pay down credit card balances below 30% utilization before applying — this alone can boost your score 20–40 points in 30 days
- 3Gather 3 months of bank statements and your 2 most recent pay stubs — lenders at this tier want to see income stability
- 4Apply to a credit union where you have an existing relationship first — they often offer the best terms for 600-range scores
- 5Consider a co-signer with good credit — this can move you from 'fair' tier rates (14–20%) to 'good' tier rates (9–14%)
- 6If you're self-employed, prepare your last 2 years of tax returns and 6 months of business bank statements
- 7Don't apply to more than 3 lenders within a 14-day window — multiple inquiries beyond this can further impact your score
Common Questions — 600 Credit Score
If you own your home, a home equity loan or HELOC gives you access to the lowest rates and highest loan amounts available in Canada. By using your home as collateral, you reduce lender risk — which translates directly into better terms, lower rates, and higher approval odds even with imperfect credit.
How It Works
Enter your property details
Estimated home value and mortgage balance — we calculate your available equity.
Complete your profile
Credit range, income, and what you need the funds for. Under 2 minutes.
See your equity estimate
Available equity, estimated rate, and loan vs. HELOC comparison.
Connect with equity lenders
Apply to lenders who specialize in home equity — from banks to private lenders.
What Determines Your Home Equity Loan Terms
Available equity (home value minus mortgage balance) determines your maximum loan amount
Most lenders allow borrowing up to 80% of your home's value minus your mortgage balance
Credit score still matters but is less critical when the loan is secured by your home
Income must demonstrate ability to handle the additional payment
Property type and location can affect available lenders
Estimated Rate Bands
| Credit Tier | Estimated Rate Range | Approval Likelihood |
|---|---|---|
| Excellent (750+) | 5.99% – 8.99% | Very High |
| Good (700–749) | 6.99% – 10.99% | Very High |
| Fair (650–699) | 8.99% – 14.99% | High |
| Below Average (600–649) | 10.99% – 18.99% | Moderate-High |
| Poor (Below 600) | 14.99% – 24.99% | Moderate |
* Rates are estimates based on typical lender criteria and respect Canada's federal Criminal Code interest cap of 35% APR (in force since January 1, 2025). Your actual rate may vary. These are not offers.
Maximizing the Value of Your Home Equity
Home equity loans offer the lowest rates — if you're a homeowner, this should be your first consideration for any large borrowing need.
A HELOC provides flexible access to funds, while a home equity loan gives a lump sum with fixed payments. Choose based on whether you need all funds at once.
Use home equity for debt consolidation to potentially save thousands in interest costs — replacing 20%+ credit card debt with 6-10% secured lending.
Frequently Asked Questions
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Lowest rates available — secured by your home
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Estimate Your Home Equity Options
See what your home equity can unlock. 2 minutes, no obligation.