Soft vs Hard Credit Inquiries in Canada

Soft vs Hard Credit Inquiries in Canada

One of the most common worries I hear from clients is “won’t shopping around wreck my credit score?” Here’s the honest answer: a soft check does nothing to your score, and even a hard mortgage pull is a small, temporary dip that rate-shopping rules are built to protect.

Quick answer: A soft inquiry (checking your own credit, an employer review, a pre-qualification estimate) has no effect on your credit score. A hard inquiry happens when you formally apply for credit and can cause a small, temporary drop of a few points. When you shop for a mortgage, Canada’s bureaus treat multiple hard pulls in a short window (roughly 14–45 days) as a single inquiry, so comparing lenders does not stack up damage.

0
points a soft check costs you
14–45
day rate-shopping window (one inquiry)
3–6 yrs
how long a hard inquiry stays on file
2
credit bureaus: Equifax & TransUnion

Soft inquiry vs hard inquiry: the real difference

A soft inquiry is any credit look-up that isn’t tied to a new credit application. Checking your own report, an employer running a background check, a landlord screening a rental application, or a card you already hold reviewing your account are all soft pulls. They may show on your report, but only you see most of them, and they never move your score.

A hard inquiry happens when you formally apply for something and a lender pulls your bureau to make a decision — a mortgage, a car loan, a credit card, a line of credit. A single hard pull usually costs just a few points and recovers within a month or two. What lenders actually watch for is a cluster of hard pulls for different unsecured products in a short span, because that can look like someone scrambling for money.

Soft vs hard at a glance
FeatureSoft inquiryHard inquiry
Triggered byYou checking your own credit, employer/landlord checks, account reviews, pre-qualificationsA formal application for a mortgage, loan, card or line of credit
Score impactNoneSmall, temporary (usually a few points)
Who can see itMostly just youLenders reviewing your report
Needs your consentNot alwaysYes

Why rate-shopping doesn’t punish you

This is the part that reassures people. Canada’s credit-scoring models know the difference between someone opening five new credit cards and someone comparing mortgage rates. Equifax counts multiple mortgage or auto-loan inquiries made inside a short window — generally 14 to 45 days — as a single inquiry. My advice is to keep your serious rate shopping inside about two weeks so it clearly lands in that window. Note this de-duplication applies to mortgages and car loans, not to a batch of credit card applications.

How a broker makes it one pull, not ten

Here’s the piece most people don’t realize: working with a mortgage broker doesn’t mean ten lenders each pulling your credit. I pull your credit once, then take that single application and shop it to many lenders on my end. You get access to dozens of banks, credit unions and monoline lenders competing for your file, with one hard inquiry on your report instead of a trail of them. That’s the opposite of walking into five bank branches yourself.

Equifax vs TransUnion, and how long inquiries linger

Canada has two credit bureaus, Equifax and TransUnion, and their numbers can differ because not every lender reports to both. A hard inquiry stays on your Equifax report for up to 3 years and on your TransUnion report for up to 6 years — but its influence on your score fades much faster than that, typically within a year. You can pull your own reports for free (Borrowell shows your Equifax data, Credit Karma shows TransUnion), and doing so is a soft check that costs you nothing.

How a Calgary mortgage broker helps

  • One credit pull, shopped to many lenders — not a separate hard inquiry for each bank you’d otherwise visit.
  • I time and structure your application so all comparison stays inside the rate-shopping window.
  • I read your bureau with you and flag anything that could cost you a better rate before we submit.
  • It’s free, with no credit hit to start and no obligation.

Mortgage Application

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  • 2-minute form
  • No credit check to start
  • Bank-level encryption
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Frequently asked questions

Does checking my own credit score lower it?
No. Checking your own credit is a soft inquiry and has zero impact on your score. You can pull your own Equifax and TransUnion reports as often as you like — through free services like Borrowell and Credit Karma — without any effect.
How much does a hard inquiry lower my score?
Usually just a few points, and the effect is temporary — most people recover within a month or two. A single hard inquiry is minor. What can hurt more is many hard pulls for different unsecured products in a short time, which lenders may read as financial stress.
Will comparing mortgage rates with several lenders hurt my credit?
No, as long as the checks fall inside the rate-shopping window. Equifax treats multiple mortgage inquiries made within roughly 14 to 45 days as a single inquiry. Keeping your serious shopping to about two weeks makes sure it counts once, not many times.
Does using a mortgage broker mean lots of credit pulls?
No — that’s a key advantage. A broker pulls your credit once, then submits that single application to many lenders. You get dozens of lenders competing for your file with just one hard inquiry on your report, instead of a separate pull for every bank you’d visit on your own.
How long does a hard inquiry stay on my credit report?
A hard inquiry stays up to 3 years on Equifax and up to 6 years on TransUnion. Its effect on your actual score fades much sooner, usually within a year, and it stops mattering to most lenders well before it drops off the report.
What’s the difference between Equifax and TransUnion?
They are Canada’s two credit bureaus. Both track your credit history, but scores can differ because not every lender reports to both. Lenders may pull either one, so it’s worth checking both of your reports for accuracy.

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This article is general information, not financial, mortgage or legal advice. Rates, programs and rules change and depend on approval. Please speak with a licensed mortgage professional about your situation. Mortgages for Less with INDI Mortgage.