The document discusses credit scores and their importance for obtaining mortgages. It explains that credit scores range from 300 to 900, with the average Canadian having a score of 700. Scores of 680-800 typically qualify for the best mortgage rates. It also outlines the factors that are considered in calculating credit scores, such as payment history, current debts, age of accounts, types of credit used, and credit inquiries. The document provides tips for improving credit scores, such as making on-time payments, paying down credit card balances, and limiting credit applications. It emphasizes verifying and correcting any errors on credit reports.

1. presents
CREDIT 101
WHAT ANYONE IN THE REAL ESTATE / INVESTMENT
ARENA NEEDS TO KNOW ABOUT CREDIT!

2. A little about Geoff Lee…
√ Co founder and Director of the Imani Orphan Care Foundation
● www.imaniorphancare.com
√ Over 15 years of real estate experience & Real Estate Investor
√ Member of…
● Better Business Bureau
● Chamber of Commerce
● Mortgage Brokers Association of British Columbia
● Canadian Association of Accredited Mortgage Professionals

3. √ Mortgage educator/key note speaker for…
● Wealthy Investment Network
● Business Network International
√ Regularly sourced for mortgage insights by the …
● Vancouver Sun
● Mortgage Broker News
√ Ranked amongst the top 3% mortgage brokers in Canada by CMP magazine
√ Finalist in 2013 CMP Canadian Mortgage Awards for Best Customer Service from
an independent office

4. What is a credit score anyway?
It indicates a person’s credit worthiness (poor, fair,
good, excellent, etc.) in comparison to others.
A credit score tells the Lender how much of a risk
you are, which also affects how much you’ll pay
for your mortage.

5. Scores range
from 300 to 900
(the perfect
score)
The average
Canadian
adult has a
credit score of
700.

6. Only 11% of Canadians rank above 800!
…and its virtually unheard of to see a score near 900…
All you really need is 680 – 800 to get the best mortgage
rates.
Even if you have 600, you likely can still get a decent deal
if you can prove income and haven’t had any
delinquencies in the last year.

7. What is a “B” client?
1 OUT OF 5 CANADIANS ARE
IN THIS BOAT…
A “B” CLIENT IS SOMEONE
THAT HAS ISSUES WITH THEIR
CREDIT AND THE BANKS HAVE
NOT LIKED WHAT THEY HAVE
SEEN!
GOOD NEWS! THERE ARE
LENDERS THAT ARE WILLING
TO GIVE TO THE CREDIT
CHALLENGED! ESPECIALLY IF
YOU HAVE A BIG DOWN
PAYMENT.

8. Different mortgages require different scores!
Mortgages for the self-employed
or for rental properties require
higher scores.
The table to the right shows the
approximate effect of different
scores on mortgage rates.
Credit
Score
Interest
Rate
700+
The best
rate
680-699
+0.00 -
0.20%
650-679 +0.30%
620-649 +0.40%
600-619 +0.50%
580-599 +1.50%
540-579 +2.00%
500-539 +3.50%

9. How is the credit
score calculated?
A. Payment History 35%
i. How many payments are
over 30 days late?
ii. How many collection
agencies are after the client?
iii. Are there any judgements
or bankruptcies?

10. How is the credit
score calculated?
A. Current Debts - 30%
i. How much do you currently
owe?
ii. How many creditors do you
currently owe money to?
iii. How much could you owe
if you used all your available
credit?

11. How is the credit
score calculated?
A. Age of Accounts – 15%
i. The longer your accounts
have been opened, the better!
ii. You need 3 accounts with
a limit of $2000 over 1 year old…
and at the minimum 2.

12. How is the credit
score calculated?
A. Types of Credit – 10%
i. Bank loans, credit cards
and revolving credit accounts all
impact you differently.

13. How is the credit
score calculated?
A. Credit Enquiries – 10%
i. How many times has your
credit been pulled in the last 12
months?
ii. Mortgage Brokers only pull
credit once… FOR MULTIPLE
LENDERS!

14. What does a bad credit
report look like?
TOO MANY CREDIT CHECKS
CREDIT BALANCES OVER 30%
OF LIMIT
OVER 30 DAYS OUTSTANDING
ON PAYMENTS OF CREDIT
ACCOUNTS.

15. What does a good
credit report look like?
CLEAN
CLEAN
CLEAN


16. So, how do I fix my credit?
1. Make payments on time. Top Credit Killer is when payments are
made over 30 days late. BIG NO – NO!!!
2. Pay down credit cards to a maximum of 30% of the credit limit.
Another Top Credit Killer is a MAXED OUT CREDIT CARD!
3. Applying for too much credit in a short period of time is also a
Top Credit Killer.

17. Finally, know your credit score and manage it!
Over 70 – 80 % of Canadians have mistakes on their credit report.
Tackle every mistake you find. It will make for a better credit score!

18. Get in touch with us….
www.geoffleemortgage.com
Twitter: @geoffleeca
Linked In: http://ca.linkedin.com/in/geoffleemortgage/
Email: Geoff@geoffleemortgage.com
Phone: 1.778.552.3489

19. Thanks so much for attending the GLM Mortgage Group
workshop – CREDIT 101.
If you have any questions please call me at 778.552.3489
or email me at geoff@geoffleemortgage.com.
“We specialize at getting you the fastest “YES” at the
SHARPEST RATE… GUARANTEED!!!”
- Geoff Lee