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I dont have bad credit, its really that i dont have any credit. Do you think it would be possible for me to get a $ 375,000 home with little credit and a down payment of $ 45,000? if not any advice?

3 Thoughts on How much do I need to put down on a house with little credit in BC?
  1. Reply
    Kitty Kat
    February 28, 2014 at 5:48 am

    A load officer can tell you. Their decision depends on your income, debt, and down payment. From this question, it sounds like you have 0 debt.

    If your income is high enough and you have a low debt to income ratio, you might get a loan. (You didn’t specify the income) I don’t know, honestly. However, the $ 45k is far from the typical 20% down payment needed. This may hurt your ability to get a loan. This is only 12%. If this is most of your savings, you need to factor in closing costs. With a house that high in value, it might be more than 5k.

    Lets forget about credit. If you take out a 330,000k load for 30 years at 6%, your mortgage payments will be 2,000 a month. With 7,000 in property taxes, you will need to pay 2500 a month. Suggested required salary is 110,000 a year. Do you make that or more? If not, good luck.

    I would suggest opening some credit cards to build credit. Then save up 75k for the 20% down payment. You will save a lot of money in the end.

  2. Reply
    February 28, 2014 at 6:22 am

    Probably if your income would support the payment and expenses and if you have a secure job. Go to your bank and ask and then go to a mortgage broker and ask.

  3. Reply
    February 28, 2014 at 6:31 am

    Well, do you have any credit card history? That will help. If you do not have any credit history, sometimes banks will look at you as an uncertain risk. You may want to get a credit card to show that you can handle at least small amounts of credit responsibly. However, if you have been in a job for a long time, and can demonstrate a steady income, bank may overlook that. You should speak to the loans officer at the bank where you have an account. Do you have any investments GIC’s etc? Even if you do not have credit, the fact that you have equity will help you in the bank’s eyes: shows you are responsible.

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