25 June 2010
It includes major credit card with a $1,500+ limit, a revolving credit line, reported lease or an instalment loan.
That means if you have no credit and you want to get a mortgage, it’s time to solve this problem right now. First of all, get a credit card, a small instalment loan etc. One of the main rules you should follow is timely payments, because many lenders require perfectly clean repayment history for at least 1 or 2 years.
Yes, there are some exceptions, for example, a few cases where a co-signor or alternative credit can be used instead of traditional repayment history. (According to CMHC’s Newcomer program, “Alternative credit” can be proof of satisfactory rent payments for a year). But don’t forget, that it’s only an exception and not the rule.
In order to get more information concerning your own credit situation, please, consult your mortgage broker.