# Credit scores



## chiguy (Mar 9, 2009)

I'm currently living in the U.S. If I were to move to Canada would my U.S. credit score follow me, or would I start with a blank slate in Canada?


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## Auld Yin (Mar 10, 2009)

chiguy said:


> I'm currently living in the U.S. If I were to move to Canada would my U.S. credit score follow me, or would I start with a blank slate in Canada?


Your US credit score would follow you.


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## BunskiBoo (Jul 10, 2009)

Auld Yin said:


> Your US credit score would follow you.


On this note, does anyone know how you go about getting a credit rating before you arrive in Canada? We've been informed that you can open a credit card account whilst still in the UK, which will bump up your score. However, when we looked at doing this it seems you can only apply for a debit card, which I assume doesn't help. Without a credit rating, is it almost impossible to obtain a mortgage etc.? How do others manage please?

Many thanks.


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## Auld Yin (Mar 10, 2009)

BunskiBoo said:


> On this note, does anyone know how you go about getting a credit rating before you arrive in Canada? We've been informed that you can open a credit card account whilst still in the UK, which will bump up your score. However, when we looked at doing this it seems you can only apply for a debit card, which I assume doesn't help. Without a credit rating, is it almost impossible to obtain a mortgage etc.? How do others manage please?
> 
> Many thanks.


The obtaining of a mortgage will depend on a number of factors. The following are desirable but not necessarily essential.
1) at least a 30% down payment. Some lenders may require more.
2) Permanent Resident status.
3) Full-time employment with sufficient income to ensure mortgage/taxes/condo fee payments no more than 30% of gross family income and total debt payments no more than 35%. I could be corrected on those numbers.

If the down payment is less than 20% the mortgage will need to be insured against default. The cost of insurance is at expense of the borrower but can be added onto the mortgage principle.

I would point out that the consensus is that those coming under a TWP should not buy property because of the uncertainty of their residence/working status. It is thought better to buy as a PR (Permanent Resident).


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## NickZ (Jun 26, 2009)

Is Chiguy in Chicago? Harris bank in Chicago is owned by BMO. I'd ask what they can do for you.

For the UK I'd wander over to HSBC and discuss opening an account with them. If you're getting a mortgage etc you should qualify for free Premier status. If so HSBC UK should be able to open you a Canadian bank account. Help you get a credit card etc. Plus give you an intro to the HSBC Canada bank manager. OTOH HSBC Canada doesn't cover the whole country so you'll want to check the map.


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## BunskiBoo (Jul 10, 2009)

Thanks Auld Yin.

Nickz: We actually have the HSBC application form as we are with them in the UK (First Direct internet bank) and very happy with them. It was through starting to fill out the form that we found they don't issue a credit card until you are resident; debit only.
One thing that put us off is that they are less well known than the Canadian banks and I have read that banks charge for use of their ATMs unless you have an account with them (and presumably HSBC ATMs are less common).
We asked First Direct about opening an account from here but it did not seem very familiar to them and sounded expensive. May try again.
Thanks.


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## NickZ (Jun 26, 2009)

HSBC Gives you access to the BMO ATM network. Unless things have changed lately which I doubt. Surf over to the HSBC Canada website and check. It should say. The BMO network is equal to the other four big banks.

The issue isn't ATMs it's the branch network. They might not have a branch near you.


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## BunskiBoo (Jul 10, 2009)

NickZ said:


> HSBC Gives you access to the BMO ATM network. Unless things have changed lately which I doubt. Surf over to the HSBC Canada website and check. It should say. The BMO network is equal to the other four big banks.
> 
> The issue isn't ATMs it's the branch network. They might not have a branch near you.



Thanks for that.....will have a look at the website. I guess we'll need to maintain a certain amount of money in the bank to gain certain benefits but will certainly look into it. Thanks for your info!


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## NickZ (Jun 26, 2009)

They actually count your mortgage. It's the amount of business you do with them not how much you have on deposit. I don't know which part of Canada you are going to but I doubt many people buy homes in the Toronto area without mortgages big enough to qualify for the Premier service.


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## BunskiBoo (Jul 10, 2009)

NickZ said:


> They actually count your mortgage. It's the amount of business you do with them not how much you have on deposit. I don't know which part of Canada you are going to but I doubt many people buy homes in the Toronto area without mortgages big enough to qualify for the Premier service.


Oh, I see. We are moving to BC (location yet to be decided). We were hoping that the sale of our UK home would cover the purchase of our Canadian one but with the exchange rate such as it is and the UK housing market having dipped, we may have to take out a mortgage after all. I'm of the opinion (although OH not so) that taking out a small(ish) mortgage may be an advantage, but when just starting up in a new country and looking for employment if we haven't found anything by then, it's a daunting prospect!


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## martino61 (Mar 29, 2011)

Thanks, 
If this is still true in 2013, it will be very helpful. My company that I will be moving for has a relation with HSBC so it's the logical choice for us.


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