Blog by

<< back to article list

Down Payment and Credit Score

If you are thinking of buying a property in the future you need to work on saving up your down payment and improving your credit score now! It is becoming increasingly harder to obtain a mortgage in Canada.

 

A really great way to start saving up for a down payment is to open an RRSP account and start placing a set amount of money in that account every month. You are allowed to withdraw up to $25,000 in one calendar year to purchase or build your home.

 

To increase  your credit score you need to pay your bills on time, use credit and have a solid credit history. The factors that go into calculating your credit score are:

 

35% = your payment history - are you paying your bills on time, before they are due or are you always late?

30% = credit utilization - how much credit do you have available and how much is used (are your credit cards maxed out).

15% = credit history - how long have you had credit (credit cards, car loans, student loans, etc.)

10% = new credit - inquiries and the number of new credit applications.

10% = credit mix - types of credit you have - installment loans/mortgages vs. revolving credit (credit cards/lines of credit)

 

Credit Scores Range from 300-900. 700+ is considered a good MINIMUM level to have.

--
Alexandra Axsen
Lake Okanagan Realty Ltd.
Managing Broker
Tel: (250) 870-2792
Fax: (778) 484-5252
Email: Alex@LakeOkanaganRealty.com
506 Doyle Ave
Kelowna, BC V1Y 6V8
www.LakeOkanaganRealty.com

Archives