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.
Lake Okanagan Realty Ltd.
Tel: (250) 870-2792
Fax: (778) 484-5252
506 Doyle Ave
Kelowna, BC V1Y 6V8